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Cameron’s speech: The false claims of a failing politician

02 Wednesday Oct 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Cost of living, Crime, Democracy, Disability, Economy, Employment, Health, Housing, Immigration, Law, Liberal Democrats, People, Police, Politics, Poverty, Race, Tax, Terrorism, UK, unemployment, Workfare

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Don't you think he looks old?

Don’t you think he looks old?

Was that really it?

After the barrage of new policy plans from the Labour Party last week, David Cameron’s big revelation, at the end of the most disappointing Conservative conference since – well – the last one, is a hint that the Tories want to take benefits away from anyone under 25 who isn’t in work or education, if they win in 2015?

More repression, then. In a speech that we’re asked to believe is about making the UK a land of opportunity, of aspiration? A “land of hope and Tory”?

Land of hopeless Tories, more like!

Let’s look at those options. Put someone aged between 16 and 25 back into education and you put them into debt (unless they have very rich parents) – we have the Liberal Democrats to thank for that, after they betrayed their own manifesto promise and supported a massive increase in student fees.

Force them into work and its an employer’s market, isn’t it? They can hire or fire under any conditions they like – and the minimum wage will be no problem. You don’t like zero-hours contracts? Too bad – it’s a choice between being listed as employed but unlikely to get any paying work, or losing the pittance you live on anyway. Part-time wages putting you into debt? You’ll be homeless a lot faster without any benefits!

Whatever happens, of course, the benefit bill comes down and fewer people are classed as unemployed.

Just like George Osborne’s plan to put the long-term jobless on indefinite Workfare, this will falsify the employment figures to make it seem the Conservatives have improved the economy when in fact they are making matters worse.

The rest of it was a web of lies and waffle. It has been suggested that Cameron wanted to re-use his speech from last year, rewriting it minimally in the hope that nobody would notice, and that it would be worth finding out if this is true – but that would not get to the heart of the matter, which is that the Conservative Party has completely run out of momentum.

They’re at a dead stop and all they have to support them is falsehood.

Cameron’s speech started with a claim that the Tories are on the side of “hardworking” (it’s hard-working, David – learn some English) people. While he waffled, I had a look at some of the Tory slogans and tried to match some facts to the claims. So we have:

“A tax cut for 25m people” – but they put the cost of living up and wages down so “hardworking” people are worse-off.

“The deficit down by a third” – two years ago. It has been years since they made any notable progress.

“More private sector jobs” – that don’t pay “hardworking” people a bean because they’re part-time or zero-hours. They have also cut the public sector – and given those jobs to people on Workfare.

“Welfare capped” – so poor people are forced towards destitution or suicide

“Crime down” – because police are discouraged from recording crimes against “hardworking” people?

“Immigration down” – because the UK isn’t attractive to “hardworking” foreign people any more.

To these, Cameron added:

“Helping young people buy their own home” – by creating a debt bubble and asking the taxpayer to foot the bill.

“Getting the long-term unemployed back to work” – in order to falsify employment statistics.

“Freezing fuel duty” – and doing nothing about the huge, unjustified, price increases demanded by energy companies.

“Backing marriage” – with less than 20p a day for the poor.

“Creating wealth” – for whom?

“We are clearing up the mess that Labour left” – Labour didn’t leave a mess. Bankers left the mess. Why have the bankers not been cleaned up? Why has Mr Cameron thrown money at them instead?

He referred to the fact that Theresa May (finally managed to have Abu Qatada deported. She wants to get rid of the Human Rights Act, claiming it is necessary if the government is to be able to – among other things – deport suspected terrorists, right? So her action has proved that repealing an Act that protects the rights of British citizens isn’t necessary.

“Who protected spending on the NHS? Not Labour – us.” Wrong. At last count, spending on the NHS under the Conservative-led coalition was down. The plan was to spend £12.7 billion more by May 2015, but by December last year this meant the government needed to find more than £13 billion for this purpose.

He referred to the Mid Staffs hospital scandal as a Labour disaster – look to the Skwawkbox blog for the facts (hint: it’s not as clear-cut as Cameron pretended).

“When the world wanted rights, who wrote Magna Carta?” he said in all hypocrisy. Is he telling us the British people – who demanded those rights in the first place – are now demanding that he divest us of those same rights by repealing the Human Rights Act?

“When they looked for compassion, who led the abolition of slavery?” Fine words from a man whose lieutenant, Iain Duncan Smith, has been working hard to restore slavery for the unemployed, sick and disabled – even going to the lengths of pushing through a retrospective law, after his rules were found to be illegal.

“Whose example of tolerance – of people living together from every nation, every religion, young and old, straight and gay – whose example do they aspire to?” Perhaps someone should point him to his Home Secretary’s advertising vans, which preached intolerance of anyone who wasn’t demonstrably white and British by encourage people on the street to tell anyone else to “go home” in what Owen Jones called the language of knuckle-dragging racists.

His plea for Scotland to remain in the UK must have seemed particularly hypocritical, as the man who has passed more divisive policies than any other Prime Minister, possibly in British history, called for “Our Kingdom – United”.

There was more, much more – and if you have the stomach for it, you can find it here.

The underlying theme was that he wanted to appeal to British citizens to let the Conservatives back into office with a majority government in 2015, so they could “finish the job”.

If we let his party finish the job, we’ll be left with a ruined country, a wrecked system of government, and an elite ruling class laughing all the way to the offshore bank.

I made my opinion clear in a message to the BBC’s ‘live coverage’ page (which of course wasn’t used). I’ll repeat it here:

This speech is really distressing.

Cameron has learned nothing from the last three years, in which his policies have caused suffering to millions of hardworking people.

There is nothing in his words for hardworking people to support.

No growth, no hope, no health…

No future.

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Why listen to naysayers when Labour has so many reasons to be cheerful?

26 Monday Aug 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Corruption, Disability, Economy, Employment, European Union, Health, Housing, Immigration, Justice, Labour Party, Law, Liberal Democrats, Media, People, Politics, Poverty, Public services, Television, UK, unemployment

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A strong hand: Ed Miliband has plenty of ammunition with which to hammer the Conservative-led Coalition this autumn - but using it would mean a break from his recent policy direction. Does he have the stomach for it or will he continue to ignore the majority of Labour supporters and favour an inner circle of advisers who have, so far, served him poorly?

A strong hand: Ed Miliband has plenty of ammunition with which to hammer the Conservative-led Coalition this autumn – but using it would mean a break from his recent policy direction. Does he have the stomach for it or will he continue to ignore the majority of Labour supporters and favour an inner circle of advisers who have, so far, served him poorly?

Vox Political reblogged a post on the Skwawkbox blog yesterday, identifying a commonplace tactic used by members and supporters of the Coalition government.

It works like this: You make an assertion in the media that will harm your opponents, even though you have no evidence to back it up. You argue your case vehemently, refusing to accept any alternatives to what you are saying. And when the evidence comes in and it’s against you, you say it is a stitch-up and continue claiming both the moral and factual victory.

This is what the Conservative Party has been doing, loudly and continually. Look at its record on the NHS and on social security reforms and you’ll see that this assertion is supported by fact. Now, more factual evidence has arrived to undermine other Tory claims.

In spite of this, the Labour Party presents the appearance of an organisation torn by inner disagreement, after several high-profile figures broke ranks to criticise the leadership for failing to go on the attack during the summer, when the Conservative-led Coalition was vulnerable on any number of levels.

The BBC ran a story in which Labour’s Tessa Jowell warned that public criticism of Labour leader Ed Miliband by party colleagues creates an “unappealing sense of toxic disunity”.

We’ll come back to the BBC shortly, but for now it is enough to say the story quoted an article by Dame Tessa in the Observer, claiming that “disloyalty” of this kind risked handing the next election to the Tories.

She wrote: “There is… nothing constructive in publicly delivering ‘helpful advice’ that could be much better delivered quietly in private,” but for all we know, Mr Miliband’s critics had already done this, only for him to turn a deaf ear.

She is wrong, of course. Those people spoke up because they believed that their leader has been ignoring the mountain of evidence piling up against the Coalition – evidence that he could use to pummel David Cameron and Nick Clegg into the dust long before the next election; that Mr Miliband is unaccountably trying to avoid criticism from the likes of the Daily Mail and the Daily Express, in an attempt to court the right-wing readership of those papers; and that he would get more respect from those people – and win back disenchanted Labour voters – if he acknowledged and supported the evidence against the Coalition’s policies and set out opposing plans that mapped out a different course for the UK, one that might actually have a chance of success.

There are so many ways to strike against the web of so-called ‘myths’ (in fact outright lies) spread by the Conservatives since they came into office with the Liberal Democrats that it is hard to know where to start.

Let’s begin with the report by the international doctors’ organisation Medecins Du Monde (Doctors of the World), stating very clearly that the claim, by Health Secretary Jeremy Hunt, that health tourism is rife in the UK, is nonsense.

In a policy briefing, the organisation stated: “Seven years of data… shows that service users had, on average, been living in the UK for three years before they tried to access healthcare. Only 1.6 per cent of people using the service had left their country of origin for personal health reasons.”

Concentrating on one particular illness, “Research carried out by Terrence Higgins Trust and George House Trust found that people living with HIV using their services had been resident in England for between 12-18 months before testing positive for HIV. If access to HIV drugs had been their motivation for coming to England, they would have been unlikely to wait so long to become eligible for life-saving treatments.”

Therefore, “Research by Doctors of the World’s European network indicates no correlation between accessibility of healthcare to migrants and migration patterns.”

The government has made health tourism a major part of its anti-immigration campaign, claiming that it costs the taxpayer a fortune, but even this was rubbished by the professionals: “Current estimates vary greatly, although last year the NHS estimates it spent £33 million treating foreign nationals and wrote off £12 million of this sum. This represents about 0.01 per cent of the £107 billion NHS budget. These sums are considerably less than the net contribution made to the UK by migrants of 1.02 per cent of GDP, or £16.3 billion, according to the OECD.”

Just 0.01 per cent of the NHS budget is lost treating foreign nationals who do not pay – even less than the 0.7 per cent of the social security budget that is lost to fraud, according to DWP figures. But the government talks up these comparatively tiny amounts as though they will topple us all into bankruptcy (impossible).

One might almost believe there was an intention to distract us from something else. Remember, the Conservatives are well-practised at ‘bait-and-switch’ fraud, as mentioned in an earlier article. Perhaps they don’t want us examining their lackadaisical attempts at pretending to counter corporate tax avoidance that costs up to £120 billion per year? Or maybe they don’t want us thinking about what could have been done to restore respectability to our bankers after the financial crisis they caused.

Meanwhile, Tory claims that the Bedroom Tax – I said the BEDROOM TAX – would cut the Housing Benefit bill by £480 million have been destroyed after Labour MP Karen Buck retrieved figures from the House of Commons library, showing that the cost will in fact increase by £1.5 billion this year – and still further over the next three years.

The Mirror reported that this is because more than 40,000 more people have claimed HB since this time last year, with the biggest pressure coming from working people who need help with housing costs because their wages no longer cover them, especially since private landlords have increased rents by an inflation-busting three per cent over the last 12 months.

Meanwhile, councils have been forced to rehouse victims of the Bedroom Tax from cheaper social housing into more expensive private rented properties, creating more unwanted extra costs.

It was previously reported that larger social housing is going empty because people do not want to move in and then fall foul of the Bedroom Tax. I can’t currently find the reference for that, but if anyone can help out, please send in a comment with the link.

The SPeye blog has filed an alternative take on Housing Benefit, which claims that the current amount paid by the taxpayer on HB, at £23.77 billion, is £5.77 billion more than George Osborne predicted in 2010 when he said his changes to HB meant it would be “controlled and reduced” from £20 billion in that financial year to £18 billion by 2014-15.

This blog is highly critical of Labour’s reasoning, as reported in the Mirror story, but then comes up with an even greater loss to the taxpayer, caused by the Conservatives’ changes.

Back to the NHS now, where the Coalition government has spent £1.4 billion on redundancy payoffs, rather than care, since it came to power. This can be added to more than £3 billion that was spent on the pointless and unnecessary top-down reorganisation that David Cameron promised, prior to the 2010 election, would not take place.

The government has claimed that the redundancies will save £1.5 billion per year, which will be reinvested in patient care – but this will only bring annual spending back up to just above where it was when Labour left office, as it was revealed at the end of 2012 that annual spending on the NHS has dropped by nearly £1 billion. The government has stated that spending will have increased by £12.7 billion by 2014-15 which, in financial terms, is next year.

The Coalition lied when it said changes to the planning system would protect the Green Belt. This land, “intended to provide countryside access for urban dwellers and ensure conservation of nature, as well as maintaining agriculture and forestry” according to a BBC website article, is being eroded away with the help of new rules introduced by the Coalition, with planning applications on Green Belt land in England almost doubling from 81,000 homes in 2012 to 150,000 this year.

The government said protection was being maintained but the Council for the Protection of Rural England said the Green Belt was under threat. Who do you believe?

The announcement that the UK economy grew by 0.7 per cent, rather than 0.6, has been greeted rapturously by the Coalition, whose representatives have claimed that it shows the economy has moved “from rescue to recovery”. This is, of course, utterly ludicrous. There is no way an improvement of this kind – after years of economic flatlining thanks to Coalition policies – can be claimed as either evidence of a sustained recovery or evidence that Coalition policies are responsible for the improvement. The weakness of the upturn suggests the change brought on by conditions that would have arisen, whether the Coalition had tinkered with the economy or not.

Thankfully Michael Meacher has returned, after a brief holiday from blogging, to give us chapter and verse. “Today’s announcement by the ONS that its initial 0.6 per cent growth estimate for the second quarter of this year has now been upgraded to 0.7 per cent is insignificant when put into perspective against the recoveries of the five other UK recessions in the previous 100 years,” he writes.

“This time the economy still remains 3.3 per cent below its pre-crash level in 2008, while at the same stage of cycle (ie five years on from the crash) it was nearly FIVE per cent above the pre-crash level in the early 1980s, SIX per cent above pre-crash in the 1920s, SIX per cent above pre-crash again in the early 1930s, SEVEN per cent above pre-crash in the early 1970s, and nearly 10 PER CENT above pre-crash in the 1990s.” (Caps and italics mine)

“Come on, at this stage 0.7 per cent is to be apologised for – both historically and in comparison with other other economies emerging from recession this time round – Britain still three per cent down, but France one per cent down, Germany two per cent up, the US four per cent up and Canada six per cent up.”

The above stories emerged over the past couple of days. Look back over the rest of August and we have:

  • The revelation that the upcoming Lobbying Bill will do nothing to prevent professional lobbyists from influencing Parliament unduly, but will attack your right to campaign politically in “an outrageous attack on freedom of speech”.
  • The revelation that a ‘top ten’ list of benefit fraudsters, reported by right-wing newspapers, does not exist.
  • Information that the government may be corruptly supporting fracking because several of its members have stakes in fracking firms.
  • Home Office vans stirring up racism in London.
  • Conservative plans to abolish the human rights of everybody in the UK, in order to inflict a dangerous and exploitative regime on working people that will amount to slavery.
  • The revelation that recent attacks on the NHS for causing needless deaths have been blown out of proportion in order to make public opinion more receptive to further privatisation.
  • The revelation that the DWP is spending £1.3 million on extra staff who have been calculating the government’s flagship benefits cap – perhaps its only popular policy – because the computer system needed to do the job has not yet been built. Ministers had no intention of admitting this and the information only became public after it was discovered by somebody else.
  • And then there’s the fact that the fundamental claim of the Coalition government – that the financial crisis of five years ago happened because Labour overspent massively and mishandled the economy – was absolute and total groundless fabrication. Labour in fact handled the economy responsibly, even when the financial crisis hit.

That has to total more than 10 ways in which Labour could undermine the Coalition. All Mr Miliband has to do is open his mouth and tell people about them in ways that will be reported by the media.

And on that subject: If and when he does, and it is reported by the BBC, we can all be certain that right-wing commentators will claim that this is because the BBC is full of pinko left-wingers who support Labour. Let’s put that myth to rest as well.

A lecturer at Cardiff University has checked the facts and found that the BBC has a broadly right-wing bias. The study showed that the government of the day generally gets more airtime than anyone else (natural considering it is making policy and actually carrying out the business of government) but in reporting of immigration, the EU and religion, in 2007 Gordon Brown’s appearances on the BBC outnumbered David Cameron’s by less than two to one, while in 2012, Cameron’s outnumbered Ed Miliband’s by around four to one. The same ratios occurred for other prominent members of each party. When reporting of all topics is taken into account, Conservative politicians were featured more than 50 per cent more often than those from Labour in both 2007 AND 2012.

Going into the autumn Parliamentary session, Ed Miliband has a strong hand to play – if he has the stomach for it. And if any of the media try to suppress his arguments, he can just point to the evidence of right-wing bias and tell them they need to clean up their act just as much as the Coalition.

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NHS scandals – too many pen-pushers, too few medical staff

28 Sunday Jul 2013

Posted by Mike Sivier in Conservative Party, Health, Politics

≈ 9 Comments

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Cardiff, financial, health, healthcare, medicine, Mike Sivier, mikesivier, NHS, office work, overpaid, private, profit, scandal, sick, Skwawkbox, target, University Hospital of Wales, Vox Political


n4s_nhs1

Those of you who have been following the excellent exposure of English NHS scandals as attempts to soften up the public for mass privatisation of the NHS (oh yes they are) over on the Skwawkbox blog may be saddened to learn that it is happening over here in Wales, also.

It seems 12 patients have died within 15 months because operations at the University Hospital of Wales (UHW) in Cardiff were delayed “to meet end-of-year financial targets”.

What this – together with the situation in England – tells us is that we have allowed successive governments to turn the NHS on its head. Instead of being a medical service providing timely healthcare that is free at the point of use because it is funded by taxation, this function is now carried out in name only.

The NHS seems now to be a cover for office workers who have nothing to do with medicine and yet are happy to cancel operations due to lack of money, while being massively overpaid for doing so.

The question that arises in everybody’s mind should be: Why are we paying these people anything at all, when that money could be funding the operations they keep cancelling?

Now take this a step further. We should all be aware that the NHS is coming under heavy fire because we have a government that is ideologically devoted to the privatisation of healthcare. The claim is that, under Coalition plans, the health service would remain free at the point of use – but we know that huge amounts of taxpayers’ money would be siphoned off as profit for private companies and would not be used for medical purposes.

So this gives rise to a second question: What possible benefit may be gained from swapping one system – where healthcare is secondary to the payment of office workers – for another system in which exactly the same conditions apply, but even less of our money goes toward treatment?

I say: Sack ’em all. Whole hospitals could be run far more efficiently with a single accountant employed to keep the books straight.

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From the DWP to the economy – the Coalition’s growing credibility chasm

02 Sunday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Economy, People, Politics, Tax, UK, unemployment

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All the wrong things for all the wrong reasons: The evidence shows no good reason for George Osborne's economic austerity policies - other than, possibly, an intention to rob this nation of everything possible before 2015.

All the wrong choices for all the wrong reasons: The evidence fails to support George Osborne’s economic austerity policies – the only likely explanation seems to be an intention to rob this nation of everything possible before 2015.

The more we learn of the Tory-led Coalition’s policies, the wider the gap grows between what it is doing and what it should be doing.

Look at the sham psychometric tests, exposed by fellow blogger Steve Walker in a series of articles on his Skwawkbox site. It is now firmly established that the DWP – aided by the Cabinet office ‘nudge unit’ – set out to pressgang put-upon benefit claimants into taking part in a crude piece of neuro-linguistic programming – no matter what answers you provided, the test always pushed out a ridiculously upbeat appraisal of your character and then tried to get you to act according to this verdict in your jobsearching activities. The theory is that this will make a jobseeker more confident and finding a job easier. The problem is that it’s quite utterly ludicrous.

If you haven’t already, you can read the Skwawkbox exposure of this particular caper on that site – there are plenty of links to it from this one. The reason it is mentioned here is that it provides a useful set of questions with which to analyse any government activity: First, is the theory behind this activity sound? Second, if that theory is being used to support a particular course of action, is that action justifiable?

So let’s turn once again to George Osborne’s reasons for pursuing economic austerity, as described in the letter Vox Political received from the UK Treasury last month.

Firstly, the letter warns against the perils of losing market confidence. By this, we can see that it means we should fear any downward revision of our credit rating by the credit agencies, as “a one percentage point increase in government bond yields would add around £8.1 billion to annual debt interest payments by 2017-18”.

What’s being said is that a drop in our credit rating would mean the people and organisations that have invested in UK government debt (by buying our bonds) might move their funds to others, meaning the government could be faced with an interest rate rise, leading to increased difficulty in borrowing.

But we know that this isn’t true. The UK’s credit rating was downgraded only a few months ago. Did interest rates rise? Was our ability to borrow hindered at all? No. There’s a reason for that.

As Professor Malcolm Sawyer notes in Fiscal Austerity: The ‘cure’ which makes the patient worse (Centre for Labour and Social Studies, May 2012), “It is well-known that a government can always service debt provided that it is denominated in its own currency. At the limit the UK government can ‘print the money’ in order to service the debt: this would not take form of literally ‘printing money’ but rather the Central Bank being a willing purchaser of government debt in exchange for money.” This is what is happening at the moment. Our debt is in UK pounds, and we can always service it. Our creditors know that, so they remain happy to continue financing it.

This means that the Treasury’s next point, that “any loss of investor confidence in the UK’s fiscal position would not only affect the UK, but also the global economy” is also meaningless. There won’t be a loss of investor confidence, so there won’t be an effect on the global economy.

We move on – to the Chancellor’s claim that fiscal austerity is required to prevent the slowing of economic growth that happens when the national debt hits 90 per cent of gross domestic product (or thereabouts).

You’ll recall that my letter to the Chancellor was prompted by the revelation that the academic paper on which he relied most often, by Reinhart and Rogoff, had been proved to be mistaken. The Treasury’s response pulled out a series of references to other academic works suggesting a fiscal cliff similar to the Reinhart-Rogoff model, off which we would drop if the national debt passed an arbitrary level around 85-90 per cent of GDP. These were published by the International Monetary Fund, which we know isn’t quite as keen on austerity as it used to be; the Organisation for Economic Co-operation and Development, which this blog marked out as “schizoid” only a few days ago; and others.

Obviously I haven’t had time to look up eight academic works to support any opposing theory I may wish to create – and I think I would be foolish to try. I don’t have any grounding in economics beyond what I’ve been able to pick up by following the national and international debates.

But, then, according to Dean Baker of the Center (yes, it’s American) for Economic and Policy Research: “As a general rule economists are not very good at economics.”

He writes: “Most economists are unable to conceptualize anything that someone with more standing in the profession did not already write about. This is the only reason that the Reinhart-Rogoff 90 per cent debt-to-GDP threshold was ever taken seriously to begin with.”

That prodded my curiosity to check some of the papers listed by the Treasury in support of its stance, and the three that I checked (The Real Effects of Debt, Public Debt and Growth, and How Costly Are Debt Crises?) all listed the Reinhart-Rogoff paper in their supporting references. So Mr Baker is right.

“Debt is an arbitrary number,” he continues. “The value of long-term debt fluctuates with the interest rate… The value of our debt will plummet if interest rates rise… This means that we could buy back long-term debt issued today at interest rates of less than 2.0 percent for discounts of 30-40 percent. This would sharply reduce our debt-to-GDP ratio at zero cost.

“Bonds carry a face value, meaning the amount that will be paid off when they reach maturity. This is what gets entered in our debt figure. However bonds also carry a market price, which fluctuates inversely with interest rates. The longer the term of the bond, the more its price will vary with interest rates.

“If interest rates rise, as just about everyone expects over the next three-to-five years, then the market price of the bonds we have issued in the current low interest rate environment will fall sharply. Since we count our debt at the face value of the bonds, not their market price, we could take advantage of the drop in bond prices to buy up… bonds at sharp discounts to their face value.

“The question is why would we do this, we would still pay the same interest? The answer is that the policy would make no sense for exactly this reason.

“However, if we accept the Reinhart-Rogoff 90 per cent curse, then reducing our debt in this way could make a great deal of sense. Suppose we can buy back debt with a face value of 60 per cent of GDP at two-thirds its face value, or 40 per cent of GDP. In our debt accounting we would have reduced our debt-to-GDP ratio by 20 percentage points. If this gets us below the 90 per cent threshold then suddenly we can have normal growth again.

“Yes, this is really stupid, but if you believed the Reinhart-Rogoff 90 per cent debt cliff, then you believe that we can sharply raise growth rates by buying back long-term bonds at a discount. It’s logic folks, it’s not a debatable point — think it through until you understand it.”

I found Mr Baker’s piece after asking Jonathan Portes of the National Institute for Economic and Social Research (NIESR) for his opinion on the Treasury letter. He described it as “Predictable and largely irrelevant”.

So despite my lack of economic education, we have a working theory that suggests the Treasury has built its economic castle on the sand; that its justification for austerity is unsound. What about the austerity measures themselves? Are they justifiable on any level at all?

Evidence suggests not.

Let’s go back to our other friend in this matter, Prof Malcolm Sawyer. “Fiscal austerity and cuts in public expenditure do not work – there is a limited, if any, effect on reducing the budget deficit, and any return to prosperity is severely undermined.” We can see that this is true, using the government’s own figures. It managed to cut the deficit from £150 billion to £120 billion in 2011-12, mostly by axing large projects that invested in the UK economy. How much did it cut from the deficit in 2012-13? Less than £1 billion. The benefit cuts that created much of the fuel for this blog have not helped to cut the deficit at all.

“The reduction of the budget deficit can only come from a revival of private demand which is harmed by an austerity programme,” Prof Sawyer continues. Again, we can see that this is true. Austerity measures such as benefit cuts and the axing of infrastructure investment projects means there is less money available to the people who are most likely to spend it – the working- and middle-classes, and those who are unemployed. People with less money have to spend just about everything they receive in order to cover their costs. That money passes into circulation and the economy grows, through the fiscal multiplier effect. An attempt to explain this effect appeared on this blog within the last few days. The point is that demand increases when the people who earn the least have more to spend.

Therefore we see that Prof Sawyer’s next statement, “Deficit reduction requires investment programmes and reduction of inequality to stimulate demand”, is already proved.

So the answer is to reduce the unemployment rate by creating more jobs and closing the jobs deficit, as highlighted in this blog only a few days ago; to raise incomes by significantly increasing the minimum wage and adopting the proposed ‘living wage’, as promoted in this blog frequently; and investment in infrastructure projects.

What has Osborne done, along with his economically-illiterate chums?

He has created high unemployment.

He has depressed wages.

He has cut infrastructure projects.

He has, therefore, sucked all the demand out of the economy. What effect has this had?

Economic growth has, in the single word of Shadow Chancellor Ed Balls, “flatlined”, borrowing has remained high and the national debt is continuing to rise.

In other words, this part-time Chancellor’s strategy – a plan on which we have all been asked to judge the entire Coalition government, let’s not forget – has failed. Hopelessly.

I return you to Prof Sawyer, one last time [bolding mine]: “The austerity programme is economically irrational, socially irresponsible, and lacks credibility that it can reduce the budget deficit and secure any return to prosperity. The time has come to rebuild through investment and through a major assault on inequality.”

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Waiting for the ‘snail media’ to catch up

31 Friday May 2013

Posted by Mike Sivier in Media, People, Politics, UK

≈ 17 Comments

Tags

38 degrees, agenda, andrew dilnot, Atos, BBC News, blog, Conservative, consultation, Department for Work and Pensions, doctor, drive, DWP, Employment and Support Allowance, ESA, Grant Shapps, health, Iain Duncan Smith, Incapacity Benefit, insurance, Jeremy Hunt, NHS, political, private, Sheila Gilmore, Skwawkbox, snail media, Steve Walker, three, Tories, Tory, uk statistics authority, Vox Political, website, year


'Snail' media: The BBC News website was nearly two months behind the political blogs in its reporting of a major story.

‘Snail’ media: The BBC News website was nearly two months behind the political blogs in its reporting of a major story.

“On Tuesday, this was a serious Conservative Party policy proposal, being reported in national newspapers. Now, it’s ‘never’ going to happen,” trumpeted web campaigners 38 Degrees in an email last night.

They were, of course, referring to the Tory idea that it would be all right to restrict consultations with an NHS doctor to three per year per person – presumably the Rupert who dreamed it up thought everybody who mattered would have private health insurance instead, and this seems to be borne out by the material in the rest of the policy document.

I’m perfectly happy with this result. In fact, I think it is blogs like Vox Political that helped make it happen because – as you’ll know, o loyal reader – Vox reported on this particular scandal on Sunday, two days before.

I’ll admit, the material in the article was sourced from the newspapers, but what’s interesting is that it took a further two days for the mass – or as I intend to call it from now on, the ‘snail’ – media to cotton on that the whole idea is utterly ludicrous and the public won’t fall for it.

During that time, the Vox article went viral, and Vox readers have never really been known for keeping their opinions to themselves.

A ‘snowball’ effect then ensued, leading to reports in the papers of the public reaction and the 38 Degrees petition, which resulted in Jeremy Hunt’s grumpy tweet: “In case being misled by ‘neutral’ 38Degrees e-petition, it IS NOT and WAS NEVER going to be Conservative policy to limit GP appointments.”

He’s only upset because we spoiled his fun, I expect.

Vox Political was not the only blog covering this story, as far as I’m aware, and I certainly don’t want to suggest that it was any more instrumental in this little victory than anyone else. What I’m saying is it demonstrates that bloggers are starting to drive the political agenda.

The problem is the length of time it takes the mass – sorry, ‘snail’ – media to catch up.

Consider this story on the BBC News website (powered by Atos, in case anybody forgets) yesterday:

Under the headline ‘Incapacity benefit test claims ‘conflated figures’ – watchdog’, it states: “Suggestions that 878,300 benefit claimants dropped their claims rather than take a medical test have been challenged by the statistics watchdog.

“Tory chairman Grant Shapps was quoted saying that nearly a million people had “taken themselves off” incapacity benefit instead of sitting the test.”

Again, it’s great that this nonsense has been challenged, and the challenge has been reported. What’s not so great is the timescale.

Because the Skwawkbox blog, run by Steve Walker, challenged this nonsense almost two months ago.

The comment in the BBC story – by Andrew Dilnot, the now famous head of the UK Statistics Authority – was that “research by the Department for Work and Pensions suggested that one important reason for those cases being closed was because the person ‘recovered and either returned to work or claimed a benefit more appropriate to their situation’ instead.”

That is uncannily close to Steve Walker’s comment that “this represents nothing more than ‘churn’ – a turnover of claims withdrawn because of perfectly normal things like people getting better, or finding a job they can do even if they’re ill” – published on April 2!

I’ll accept some people may dispute the blogs’ influence on the outcome of the ‘NHS consultation’ issue, but on this one it seems unlikely there can be any doubt. Mr Dilnot’s letter followed an inquiry from Sheila Gilmore MP, who follows Vox Political and is certainly likely to have read my report on this matter. It seems likely that she also follows Skwawkbox. The amount of time between those articles’ appearance and the piece on the BBC website is the time it took for her to receive a response to her inquiry on the matter from Mr Dilnot.

Isn’t it a shame that the BBC didn’t do any fact-checking for itself?

So there you have it: If you want proper political news – and proper analysis of events – forget the ‘snail’ media and go to the blogs. We’re faster and more accurate, and what’s more, we make things change.

For the better (in case Iain ‘We’re changing their lives’ Smith was wondering).

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Why did the DWP push ahead with illegal sanctions, knowing they don’t do any good?

28 Tuesday May 2013

Posted by Mike Sivier in Benefits, Disability, unemployment

≈ 64 Comments

Tags

allowance, benefit, benefits, Cait Reilly, Chris Grayling, Coalition, Conservative, Department, Department for Work and Pensions, despair, DWP, employment, ESA, esther mcvey, government, health, Iain Duncan Smith, Jobseeker's Allowance, Jobseekers (back to work schemes) Bill, judicial review, Maria Miller, mark hoban, Mike Sivier, mikesivier, national interest, Parliament, Pensions, people, politics, sanction, sick, Skwawkbox, social security, suicide, Suicide Act 1961, support, Tories, Tory, unemployment, Vox Political, WCA, welfare, work, work capability assessment, Work Programme, Workfare


Don't shrug your shoulders, Smith! It's time the people of the UK found a way to make him care about the deaths he is causing.

Don’t shrug your shoulders, Smith! It’s time the people of the UK found a way to make him care about the deaths he is causing.

Today’s article on the Skwawkbox blog is extremely interesting, for anyone with an interest in the public services and the welfare state.

It seems the Department for Work and Pensions has pushed ahead with a regime including the Work Programme and the sanctions imposed for those who refuse to take part, and even changed the law to reinforce its position, despite having documentary proof that is two years old, showing that these policies do more harm than good and are not in the national interest.

You can read the article here to get the full picture. The gist is that a DWP report from 2011 advised the secretary of state, Iain Duncan Smith, that these policies were a bad idea – but he went ahead with them anyway.

So the report concludes that the Work Programme, and other training programmes imposed by the DWP, cause harm by preventing people from looking for work and forcing them to attend useless training sessions (as flagged up in this Vox Political article).

It admits the policy harms people who were already involved in training or volunteer work – on their own initiative – because they had to end it to take part in ‘mandated’ training or face sanction if they declined (Cait Reilly, for a much-publicised example).

People who didn’t attend, didn’t complete or rejected a training course because it was unsuitable were still sanctioned (even though the policy states – and the government has adamantly claimed for many months – that this does not happen. Transport difficulties and childcare problems were also flagged up as potentially leading to sanctions, even though they were not the fault of the jobseeker.

The report went on to criticise the sanctions regime – because it is harmful not only to the jobseeker but to members of that person’s family and friends as well. This is because it forces them to rely on family and friends for their survival, if they are lucky enough to have such people around to help; it damages family relationships and harms the well-being of low-income families who have to stretch their resources to help a sanctioned person, including younger brothers or sisters who have to rely on the money earned by their elders for their own sustainance. In other words, not only do sanctions harm individual jobseekers, but they also harm people who have had nothing to do with the benefits being suspended. As Steve Walker writes, that is “about as unjust as you could possibly get”.

There’s more, but you should visit the article because I want to ask a few more, searching, questions.

We’ve seen that the DWP was warned against imposing Workfare onto people who were already involved in training or volunteer work that they had initiated themselves. Isn’t that exactly what happened to Cait Reilly?

Then, rather than admit its mistake, pay her back the money she had lost through sanctions and let her go back to the volunteer work that might actually help her get a long-term career, the government forced her to take the matter to a lengthy (and, one expects, expensive) judicial review to prove her case.

When Ms Reilly won at the Court of Appeal (meaning the costs had to be paid by the DWP), it meant that tens – maybe hundreds of thousands of jobseekers who had been wrongly sanctioned could claim their money back. Mr… Smith immediately told the world that he wasn’t putting up with that and, diverging even further from the path of wisdom, tabled a Parliamentary Bill to change the law, in order to keep the money he and his department had stolen – yes, I think ‘stolen’ is the appropriate word – from the many taxpayers they had wronged.

Faced with this evidence, one finds it necessary to ask: In the name of sanity, why?

Why go ahead with a policy that cannot possibly be in the national interest? It stops people getting jobs; it harms jobseekers, their families and friends; it drives them to despair.

It drives them to despair.

Another recent article came our way via Facebook, and relates to the Suicide Act, 1961. It draws attention to the fact that the DWP and the wider UK government has been told, repeatedly and at length, that its policies are leading to suicides. The article itself refers to the many deaths we know take place every week because of the work capability assessment for Employment and Support Allowance, but it is also known that jobseeker suicides rise by around 10 per cent during times of high unemployment and the figures should be available to support a contention that this is taking place now.

The article goes on to say that continuing to authorise procedures that are known to end in suicide – as Iain Duncan Smith and his various lieutenants, Mark Hoban, Esther McVey, Chris Grayling and Maria Miller, have done – may therefore be viewed as procuring suicide from the disabled and otherwise disadvantaged population of the UK.

This is a criminal offence under the Suicide Act, 1961.

So it seems we have a government that has ignored the advice of its own reports in order to pursue a course of criminality that has led (as we all know) to many thousands of deaths.

Does anybody feel like calling the police?

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