The minimum income is 2.5 times what people get on benefits – but still they are labelled scroungers

Tags

adequate, benefit, benefits, Child Benefit, Conservative, Consumer Price Index, couple, CPI, debt, Democrat, earn, for hardworking people, government, increase, joseph rowntree foundation, JRF, Lib Dem, Liberal, living, loan, Mike Sivier, mikesivier, minimum income, out of work, pension, people, politics, price, rise, scrounger, social security, standard, tax allowance, tax credit, Tories, Tory, unemployment, Vox Political, wage, welfare, Wonga

The numbers speak for themselves: Under ‘Adequacy of safety-net benefits’, EVERY SINGLE INCOME GROUP has lost out. While others have suffered a great percentage drop, single working-age people remain the least able to make ends meet.

“How much money do you need for an adequate standard of living?”

That is the question posed every year by the Joseph Rowntree Foundation – and every year the organisation calculates how much people have to earn – taking into account their family circumstances, the changing cost of these essentials and changes to the tax and benefit system – to reach this benchmark.

This year’s research finds:

A lone parent with one child now needs to earn more than £27,100 per year – up from £12,000 in 2008. A couple with two children need to earn more than £20,200 each, compared to £13,900 each in 2008. Single working-age people must now earn more than £16,200, up from £13,500 in 2008;

Despite social and economic change, the list of goods and services different families need to live to an adequate level is very similar to that of the original study in 2008 – but people’s ability to afford them has declined. Overall the cost of a basket of essential items has risen by a massive 28 per cent over six years – much higher than the 19 per cent rise claimed by the official Consumer Price Index – while average wages have increased by just nine per cent and the minimum wage 14 per cent;

Increased tax allowances have eased the pressure somewhat for some households, but the freeze to child benefit and ongoing cuts in tax credits have outweighed this for low-earning families with children.

Out-of-work benefits have fallen further and now provide just 39 per cent of what single, working-age people need to reach a Minimum Income Standard.

On the other hand, pensioner couples who claim all their allowances receive 95 per cent of the amount required.

The bottom line is that the Conservative-led government has been hammering the working poor and people on benefits, while claiming to be helping them. The minimum income necessary for an adequate living standard, according to JRF research, is no less than two-and-a-half-times what people on benefits receive. That is an appalling disparity in the sixth-richest country in the world.

It also creates a danger that more people will look to loan suppliers like the government’s favourite (Wonga) for short-term help – at the cost of going into disastrous long-term debt.

Slow earnings growth and price increases have made all households worse off on average, relative to the MIS, the report has found.

The conclusion is a disaster for the Coalition’s “hardworking” people: “In the past six years the more important determinants of whether low-income households can afford the minimum budget have been the increasing cost of living relative to earnings and benefit cuts for households in and out of work.

“For working families with children, if these cuts continue, the opportunity to reach an acceptable living standard may not improve, even as wages start rising again in real terms.”

And the Conservatives have the cheek to use the slogan “For hardworking people”.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

The first, Strong Words and Hard Times
is still available in either print or eBook format here:

Advertisements

Why is it fair for taxpayers to subsidise businesses but not the disabled?

Tags

business, Conservative, depress, disability, disabled, economy, employment, George Osborne, in-work, Labour, living wage, low-paid, Mike Sivier, mikesivier, minimum wage, pay, people, politics, salary, social security, subsidise, Sunday Times rich list, taxpayer, Tories, Tory, Treasury, UKIP, unemployed, Vox Political, wage, welfare

Swivel-eyed loon: This is the kind of many who thinks subsidising businesses to be lazy, while refusing to support disabled students (no matter how intelligent they are) is a clever idea. [Picture: Left Foot Forward]

George Osborne was today set to attack both the Labour Party and UKIP as being bad for business. Isn’t that a bit rich, coming from a man whose party uses taxpayers’ money to subsidise private firms?

Across the UK, firms of all sizes – ranging from huge multinationals right down to the smallest traders – take advantage of the taxpayer-funded benefit system that supports people who earn less than the Living Wage (the minimum amount necessary for a working person to be able to pay their own way).

Osborne would have you believe this is good for Britain; more firms are employing more people – and that’s got to be good, right?

Wrong. More people may be employed, but on increasingly less money, meaning the burden on the taxpayer is increasing all the time.

But the taxpayer has increasingly less money to give to the Treasury, meaning that – instead of saving the economy – Osborne has put us into a vicious spiral of diminishing returns.

That’s what you get when you ask a towel-folder to do a real job!

It would be far better to demand that businesses pay the Living Wage. It isn’t an impossible dream – only a few decades ago, it was possible for one parent to earn enough to house and feed an entire family. Why doesn’t this happen anymore?

There is, in fact, no reason for it to have stopped.

The only conclusion we can reach is that the Tory government is using the system to leach money into the pockets of wealthy businesspeople. By pushing benefit payments so low that the unemployed and low-paid struggle to support themselves, they have made it possible for employers to pay less and pocket more.

That is why the names on the Sunday Times Roll Call of Shame (otherwise known as the Rich List) are so much richer this year than they were before the Tories weren’t elected.

The answer is simple: Compel businesses to pay the Living Wage.

Oh, but you think that will be bad for business too, do you?

Mr Osborne would tell you so, would he?

How odd – because this would be no different from a policy his government has been happily forcing on benefit claimants since 2010.

You see, as stated above, the policy has been to make living on benefits extremely difficult in order to force people to seek employment. This in turn allows firms to depress wages because they can tell the workforce there are plenty of other people waiting to take their places.

Only today, on this blog, we were discussing Tory David Willetts’ plan to cut Disabled Student Allowance. He wants us to believe that this will get students with disabilities to work harder, rather than expecting the taxpayer to lay everything at their feet; in fact, he is taking away their lifeline and leaving them to starve.

But the argument works just as well with employers. Any government with the guts to tell them that the crutch of in-work benefits is being removed and they will have to pay the difference is sending out the same message to employers as they did to benefit claimants: You’ve had it easy for too long. Now it’s time for you to earn your keep.

Some firms will go under. Unlike the disabled people being victimised by David Willetts (et al), we should shed no tears for them; they weren’t helping the economy.

More will pay up – finding new markets to fund the extra expenditure. These are the businesses that will build the real economic recovery.

Labour is one of only a few political organisations that support the Living Wage, and therefore the only mass-appeal political party that would have a genuinely beneficial effect on the economy.

Oh, but I forgot.

You were listening to George Osborne.

And he says Labour is bad for business.

But then – he’s no economist.

He’s a towel-folder.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Employers should never be allowed to dictate the minimum wage

Tags

average, BBC, British, CBI, confederation, earning, Ed Miliband, employ, government, industry, Katja Hall, Labour, Low Pay Commission, Mike Sivier, mikesivier, minimum wage, politician, Radio 4, salary, Today, Vox Political, wage, work

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.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Britain’s richest are even better-off – but how did they get that way?

Tags

austerity, avoidance, avoiding, Briton, Conservative, David Cameron, government, list, living, low, Mike Sivier, mikesivier, minimum, parasite, people, rich, selfish, Sunday Times, tax, Tories, Tory, Vox Political, wage, wealth

The Sunday Times Rich List has confirmed what some of us have been saying for years – that Austerity has funnelled Britain’s money into the hands of a very few, very selfish people.

The 1,000 richest Britons now own one-third of the nation’s gross domestic product, with their combined wealth rising from last year’s total of £449,654,000,000 to £518,975,000,000.

That’s an increase of 15.4 per cent, an average rise of £69,321,000 each and an average income of 518,975,000.

Average wages in the UK are stagnant at around £26,500, with average pay for the lowest earners having fallen by 14 per cent since David Cameron’s Tory government got its nose in the trough in 2010.

There are only two points to make from this.

Firstly, bearing in mind Gary Barlow’s recent appearances in the news for taking part in a tax avoidance scheme: How many of these 1,000 very rich people are participants in the same or similar – legal – procedures for avoiding tax? How many of them pay the full 45 per cent and how many only throw one per cent into the national pot (from which they get as many public services as the rest of us)?

Secondly, bearing in mind that many of these people take their money from very large corporations who employ very many people, how many of them pay very low wages to their employees?

The answers should provide enlightenment – not only on these people and their reasons for living in Britain, but on the policies of a government that intentionally impoverishes the defenceless in order to make this country more attractive to these fellow parasites.

Marcus Brigstocke v the Government – has he been reading Vox Political?

Tags

absentee, bank, benefit, bonus, company, cost of living, cynic, demoralise, economic, Economic and Social Research, economy, employee, employer, exploit, financial crisis, financial sector, George Osborne, government, growth, illness, in-work, living, Marcus Brigstocke, Mike Sivier, mikesivier, minimum, morale, National Institute, NIESR, politics, productivity, ruthless, sabot, sabotage, social security, staff, stress, The Now Show, turnover, Vox Political, wage, wages, welfare, work, zero hours contract

This is the first pic I could find of Marcus Brigstocke, as he might have looked while delivering the piece quoted below. He’s a known beardie so he probably had face-fuzz as well.

What a rare and pleasant thing we’ve enjoyed for the last few days – a Bank Holiday weekend with good weather! And isn’t it a shame that this means most of you will have been out, and therefore missed Marcus Brigstocke’s turn on The Now Show.

Here’s a guy who knows how to take the government apart; it seemed as though he’d been reading Vox Political for the last few months because he touched on some of our favourite subjects:

1. The economy

He led with the 0.8 per cent increase in economic growth, mocking the government’s celebratory tone with impressions of how ordinary people took the news, up and down the country (some of the accents were beyond belief).

“Well done, George Osborne,” said Marcus, his voice dripping with sarcasm. “You have proved your theory right, using the Grand Theft Auto model. You have successfully shown that the poor really are like video game prostitutes – if you kick them hard enough, eventually money will come flying out of them.”

Doesn’t this fit nicely with what this blog has been saying about the economy being dependent entirely on the movement of poor people’s money? Those with less spend all – or almost all – of their income and it is this money, being pushed around the system, that boosts profits and keeps Britain going.

He continued: “I know that the state of the economy matters but for the vast majority of people it is as mysterious and cryptic as the shipping forecast… What makes a difference to people is not zero-point-eight-per-cent growth; it’s actual wages and the cost of living.

“The National Institute of Economic and Social Research (NIESR) showed this week that the average worker is £2,000 worse-off since the financial crisis hit,” another common theme here on VP, except in fact it’s £2K per year worse-off. Let’s do a quick shout-out to Jonathan Portes, NIESR’s director, whose Tweets are well worth a read: @jdportes

“I say, ‘hit’. That makes it sound like the crisis swerved towards us. The reality is, the average worker is £2,000 worse-off since the financial sector arrogantly, and with galactic, hubristic stupidity, drove the economy off a cliff, yelling, ‘Does this mean I still get my bonus?’ Of course you’ll still get your bonus. Otherwise you’d leave the country and [chuckling] nobody wants that.” [Laughter from the audience – we’re all in on that joke.]

2. Employment

“More people are in work now; good. But why do employers talk like they deserve a sainthood when they have people working for them? Your company does a thing; you need workers to facilitate the doing of that thing. The workers work, and the thing is done – am I missing something here? Do you feel you need a medal?”

2a. Zero-hours contracts

“One-point-four million British workers are having to scrape a living together from cynical, ruthless, exploitative employers using zero-hours contracts. Value your employees – they are not battery workers; they are people… One in five UK workers earns less than the Living Wage.”

At this point the narrative switches to a spoof advert: “At GreatBigFacelessBastardCorp we care so little about what we do, we pay our workers the minimum wage allowed under the law! That way we can pass on their listlessness and overwhelming sense of defeated apathy to you, the customer! GreatBigFacelessBastardCorp – crushing dreams so you don’t have to!”

This relates to an argument that Vox Political has been having with Tory-supporting businesspeople for years, going back to the earliest days of the blog. Back in January 2012, I wrote False economies that leave the business books unbalanced in which I stated:

It seems to me that many employees are finding life extremely difficult now, because the amount they are paid does not cover all their outgoings and they are having to work out what they can do without. The cost of living has risen more sharply than their pay, so they are out of pocket.

This creates stress, which can create illness, which could take them out of work and turn them into a liability to the economy – as they would then be claiming benefits.

That’s bad – not only for the country but also for their company, because demoralised employees produce poor work and the company’s turnover will decrease; having to bring in and train up new workers to replace those who are leaving through ill health is time-consuming and unproductive.

Therefore, in taking the money for themselves, rather than sharing it with employees, bosses are clearly harming their own companies and the economy.

In fact, it seems to me that this is a microcosm of the larger, national economy. In order to keep more money, bosses (and the government) pay less (in the government’s case, to pay off the national deficit). This means less work gets done, and is of poorer quality (in both cases). So orders fall off and firms have to make more cutbacks (or, revenue decreases so the government makes more cutbacks in order to keep up its debt payments).

[This seems to have been borne out by subsequent events. More people are employed than ever before, according to the government, yet GDP has improved by only a fraction of one per cent in the last quarter. By rights, it should be about 20 percentage points higher than the pre-crisis peak by now, according to some analysts.]

The message to bosses – and the government – is clear: Cutting back investment in people to keep money for yourselves will cripple your earning ability. Cutting even more to make up for what you lose will put you into a death spiral. You are trying to dig your way out of your own graves.

But there is an alternative.

A reasonable pay increase to employees would ensure they can pay their bills, and would also keep them happy.

Happy workers produce better results.

Better results keep businesses afloat and earn extra work for them.

That in turn creates more revenue, making it possible for bosses not only to increase their own pay but employ more people as well.

Wouldn’t that be better for everybody?

Well, wouldn’t it?

3. Welfare lies

“Young workers are amongst the hardest-hit by the downturn, with pay falling by 14 per cent between 2008 and 2013. Well done, everybody! We pay far more from the welfare budget supporting incomes for people in work than we do for those out of a job.

“The government keep on crowing about the number of people they have in work … most of them are not so much in work as near some work, if only they were allowed to do any.

“If you’re on the minimum wage, kept on a zero-hours contract between 7am and 7pm so you can’t work for anyone else but rack up a grand total of – ooh! – just enough hours so your employer doesn’t have to pay your National Insurance [another VP theme], you get no training, no employee benefits, no hope of any promotion and you hear ‘IDS’ banging on about how he’s ‘the saviour of benefits street’, well, if you can still afford a shoe then please throw it at the radio or through the telly or at his actual face.” This is a reference to sabotage, in which workers threw their crude shoes – or ‘sabots’ into machinery to stop it working, in protest against their working conditions and developments that were endangering their jobs.

“Low pay means higher staff turnover, high absenteeism, poor morale and lower productivity.” That’s exactly as I stated in the VP article from 2012.

4. In conclusion

“I don’t know when money started making money faster than people but… It’s not helping,” said Marcus, truthfully. “So instead of running about with your shirt over your head doing ‘airplane arms’, shouting ‘Nought-point-eight-per-cent’… do something to get the people who actually work to be rewarded, recognised and remunerated for what they do.

“It’s not rocket science and, frankly, if it is, I sincerely hope they’re not on minimum wage.”

When I heard that piece, I very nearly stood up to applaud. If you want to hear it yourself (and I’ve left out enough of it to make it worthwhile, I promise you), it’s available for download here, and starts around eight and a half minutes in.

Actually, it would be better if Marcus hasn’t been reading this blog, because then he would have drawn the same conclusions, from the same evidence, thereby reinforcing my own reasoning.

Now, let’s have your opinions, please. I’ll be very interested to hear from supporters of the current “pay-’em-the-bare-minimum” policy as they almost invariably say things like “We can’t pay them any more” – it’s never “They have good reasons that mean they can’t pay us more”.

Interesting, that.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Why is Labour always offering too little, too late?

Tags

abuse, advisor, allowance, Andrew Lansley, assessment, BBC, benefit, Britain, build, business rate, cap, childcare, Coalition, Conservative, David Axelrod, Democrat, Ed Miliband, election, electricity, employment, energy, ESA, gas, home, house, housing, Income Tax, job guarantee, Labour, Lib Dem, Liberal, living, make work pay, migrant, minimum, National Health Service, NHS, price freeze, prosper, rent, rent cap, support, Tories, Tory, toxic, transform, wage, work, zero hour contract

Announcement or admission: Labour’s announcement, as it appeared on Facebook.

A future Labour government would cap rent increases, the party has announced – around a year and a half late.

The Coalition government has chosen to keep Housing Benefit down by making it the first payment to be reduced as part of the benefit cap, and Labour’s announcement should rightly be seen as a response to this.

But the benefit cap was announced in the mists of history, back in 2012 or thereabouts, so why has Labour only just got around to telling us its counter-proposal? The rest of us were screaming it from the rooftops at the time.

Coming so late, it seems less that this policy has been announced, and more that it has been admitted.

Perhaps this is the influence of new election advisor David Axelrod, and maybe it signals the start of regular announcements in the run-up to the general election next year. If so, this would go some way towards saving Ed Miliband’s blushes.

Certainly today we were presented with a 10-step ‘cost of living’ contract, stuffed with promises Labour has made to help beleaguered consumers keep prices down – and these are (mostly) good steps.

First is the popular scheme to freeze gas and electricity bills while the energy market is reformed.

Then there’s Labour’s plan to have 200,000 new homes built every year by 2020, relieving the housing shortage and lowering the cost of a new home.

Next comes the rent cap, plus a pledge to help families that rent plan for the future with new, long-term, predictable tenancies.

There’s the pledge to cut income tax with a 10p starting tax rate. This may be seen as an admission that Labour’s decision to end the original 10p tax rate (even though I seem to recall it was intended to be temporary) was a mistake. But isn’t it better to admit our mistakes, put them right, and move on? The plan to restore the 50p top rate has been lambasted by posh Tories and business executives, who say it won’t achieve anything (they would, wouldn’t they?) but is a good symbolic gesture.

Fifth is a pledge to ban zero-hour contracts altogether. This may seem problematic, as the evidence shows that there are working people who benefit from these contracts’ flexibility. The trouble is that unscrupulous firms were using these contracts to exploit workers who deserved better from them. Labour’s attitude – that these firms will have to manage without them if they won’t use them properly – is a bit ‘nannyish’ but makes a strong point.

Then comes Labour’s pledge to “Make work pay”. Some may criticise the use of words that have been tainted by Conservative spin. The Tories want you to believe that they’ll “make work pay” by cutting out-of-work and in-work benefits, but we all know that this won’t make anybody better-off; quite the opposite. Labour’s idea is to boost the minimum wage and encourage firms that are able, to increase their pay rates to the Living Wage, cutting the benefit bill that way.

Seventh is a little-known plan to cut business rates and make banks lend to small businesses (at least, that’s the only interpretation of “reforming the banks” that makes any sense in this context).

There’s a pledge to give working parents 25 hours’ free childcare (presumably this is per week) for kids aged three and four, and one to tackle abuses of immigrant workers by banning recruitment agencies that only hire people from abroad and pushing Europe for stronger controls. This would present problems for the Conservative-run NHS, as the BBC News has just announced that it is recruiting heavily from Portugal!

Finally we have the weakest promise – the job guarantee for the young unemployed, coupled with more apprenticeships. This has been met with opposition from the very people who were expected to welcome it, as it seems nobody outside the Labour front bench believes it has the remotest chance of success.

Unmentioned is Labour’s plan to change the assessment system for sickness and disability benefit ESA, which earned instant toxicity because it sports only cosmetic differences from the current Conservative scheme that has been fatal for thousands. The plan was announced at around the same time as a Labour inquiry into these benefits called for preventative investment that the party leadership is unwilling to countenance, and a group of mostly-disabled people called Spartacus provided a far more enlightening overview of the problems with the benefit, and the steps needed to remedy them, that clashed with what Labour is saying.

More concerning still is the fact that all of these measures are responses to Coalition policies that have harmed people during the course of this Parliament – or situations that the Tories and Tory Democrats have allowed to continue because they support the overall plan.

Where is the inspiration to transform Britain and return prosperity to everybody, rather than limiting it to people who own smart suits and big houses? When can we expect a hint that this is coming?

Unless you are one of the aforementioned people with smart suits and big houses, the Conservatives sidled into government with a plan to diddle you out of as many of your Parliament-supported rights, privileges and benefits as they could possibly fit into a five-year term in office, all the while telling you it was for your own good.

As you can tell from today’s previous Vox Political article, that has gone astonishingly well for them.

Of course, the Tories didn’t announce this plan, because they knew it would turn the electorate away in their millions – the classic example of this in practice is the way Andrew Lansley was forbidden from mentioning his privatisation plan for the National Health Service, as this would be toxic to the Tory election campaign.

But times have changed. People are suffering. They need Labour to offer something more than a promise to rub ointment on their wounds.

They want to see Labour turn the tables on the Tories. And they want to know how that’s to be achieved.

Saying Labour will “transform Britain” won’t work as we’ve all heard about such miraculous transformations before, and they have always benefited the suit-and-house people.

So come on, Ed.

When can we have it?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Britain’s starvation crisis won’t bother our new millionaires at all

Tags

bedroom tax, benefit, cost of living, cut, David Cameron, David Gauke, delay, disease, economy, Eddie Izzard, election, employment, exploit, food bank, industry, life expectancy, malnourishment, Mike Sivier, mikesivier, millionaire, National Health Service, neoliberal, NHS, pay, pay freeze, pension, people, politics, poverty, privatisation, privatise, recovery, rickets, salary, sanction, Scarlet Fever, social security, starvation, starve, sweetheart deal, tax, third world, Trussell Trust, tuberculosis, vote, Vox Political, wage, welfare, zero hours

Britain’s shame: The front page of yesterday’s Daily Mirror.

So the United Kingdom now houses more millionaires than ever before – but at the huge cost of forcing hundreds of thousands of people to seek help from food banks or starve.

This is David Cameron’s gamble: That enough people will profit from the misery of the huge underclass he has created to vote him back into office in 2015, to continue his attack on anybody who takes home less than £100,000 pay per year.

Are you really that selfish?

Do you think this is any way for a civilised, First-World society to order itself?

No – it’s more like the description of the Third World that became prevalent towards the end of the 1960s: A country with low economic development, low life expectancy, high rates of poverty, and rampant disease. They are also countries where a wealthy ruling class is free to exploit the population at large who, without money or force of arms, are powerless to stop them.

Let’s see now… The UK definitely has low economic development. Neoliberal governments since 1979 have decimated our industrial base and the so-called recovery we are currently enjoying has yet to show any worthwhile results, despite the dubious rises in employment and wages that are making headlines this week.

Low life expectancy? Yes, we have that. People in lower-class residential areas are expected to live only a few years into their retirement, if they make it that far, while those in rich areas may continue into their late eighties. Sharp readers will recognise that, although we all pay the same amount into the state pension, the rich get more from it as they live long enough to receive larger amounts.

High rates of poverty? According to the Trussell Trust, the number of food parcels it handed out per year tripled from 346,992 in 2012 to 913,138 last year, with 330,205 going to children. Another 182,000 were provided by 45 independent food banks. The government says poverty is falling but bases its figures on a proportion of the median wage, which has been dropping for the last six years. This means government claims that worker wages are rising must also be lies.

Rampant disease? Perhaps we should not go as far as to suggest this is happening – but the British Isles have witnessed the return of diseases long-thought banished from these shores, like Rickets and Scarlet Fever, along with an increase in Tuberculosis. These are all poverty-related, as they are caused by malnourishment. You can thank your Tory government for forcing so many people out of work and diverting so much NHS funding into privatisation.

As for a wealthy working class exploiting the population – the evidence is all around us.

Look at the reasons people are being driven to food banks, according to the Daily Mirror article from which I quoted the food bank figures: “Benefits cuts and delays, the rising cost of living and pay freezes are forcing more and more people into food banks, experts have long warned.” All of these are the result of Tory government policy.

The government is, of course, unrepentant. I had the misfortune to see Treasury minister David Gauke – who found infamy when he signed off on huge “sweetheart deals” letting multinational firms off paying billions of pounds of income tax they owed us – saying he was not ashamed of the huge food bank uptake. He said they were doing a valuable job and he was glad that the government was signposting people to them. Nobody seemed to want to ask him: In the country with the world’s sixth-largest economy, why are food banks needed at all?

Of course, I’m not likely to persuade anyone to change their political allegiance over this. You all know where I stand and, besides, this blog is simply not big enough to make a difference.

So I’ll leave you with the words of someone who is far more popular: Eddie Izzard, writing in (again) the Mirror:

“A million food parcels. How did our Britain get to be so hungry? Our country, where even after the Second World War, we still had the ambition to feed our poorest people and build a better country.

“This government said it wanted to reform the British welfare system. Instead, it has broken it. The proof is here in the desperate families who have had to turn to their GP, not for medicine, but for vouchers to be able to eat.

“Instead of supporting the most vulnerable people in Britain during the recession this government has hit them with a wave of cruel cuts and punishments – sanctions, Bedroom Tax, welfare cuts.

“The zero hours economy it champions is not enough to put food on tables. It’s done nothing to tackle food and fuel costs.

“No wonder that today, 600 faith leaders, dozens of charities and 40 bishops are telling David Cameron he is failing the country’s poorest people.”

Perhaps you are not affected, like all those new millionaires on whom the Tories are relying. Do you think that makes it all right for this to be happening here?

You can use your vote to share your opinion.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political deplores poverty because we live in its shadow.
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Inflation drop doesn’t mean wages will rise

Tags

banker, beast, bill, boss, Coalition, Conservative, Customs, debt, Democrat, economy, Ed Balls, employment, FTSE 100, fuel, George Osborne, government, groceries, grocery, health, hmrc, income, inflation, insurance, Keith Joseph, Liberal, Media, medicine, Mike Sivier, mikesivier, MP, Nicholas Ridley, people, politics, privatise, Revenue, salary, self-employed, shareholder, social security, starve, starving, tax credits, Tories, Tory, unemployment, utility, Vox Political, wage, welfare, welfare state

‘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.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political does not have any wage at all!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Are these gibbering buffoons really the Conservative Party’s hope for the future?

Tags

benefit, cancerous, classist, Conservative, crash, debt, deficit, dole, economics, homeless, ignorant, ill informed, industry, Mike Sivier, mikesivier, out of touch, people, politics, privatisation, privatise, privilege, Social Exclusion, social housing, student debt, Tories, Tory, tuition fee, undermine, unemployed, vice.com, Vox Political, wage, Work Programme, worker, Workfare, working class, young

The caption on this picture reads: “Nick Robinson, former Young Conservatives chairman and current BBC political editor, taking a selfie with some young Tories (Photo courtesy of theblueguerilla.co.uk).” Perhaps you’d like to dream up your own caption for this image of wild-eyed, slack-jawed decadence (he’s the political editor at the BBC and people still think it’s left-wing; the mind boggles).

How bizarre. Apparently the right-wing social media want us to believe that, even though Conservative Party membership is believed to have dropped below 100,000, the number of young people joining up or supporting that party is reaching its highest in a decade.

Never mind. If, like Alice, you try to believe six impossible things before breakfast, you still have five more slots available to you.

The new information comes from a website called Vice.com, in an article entitled ‘Rise of the Tory Youth: Meeting Britain’s Young Conservatives’.

And meet them we do, along with some of the most spectacularly ignorant and ill-informed opinions this writer has encountered in a month of Sundays.

Try this, from 24-year-old Louisa Townson, current Tory Society President at University College, London. She tells us she became a member because of Tory economics: “We’d had this huge crash and we knew we had to sort out the national debt and the deficit.” Doesn’t she know that the last four years of Tory economics have cost the UK more than Labour spent in its entire 13 years of office and reduced the deficit by a staggeringly meagre £10 billion?

Louisa thinks the tripling of tuition fees was “fair” – presumably she won’t be saddled with student debt until she’s in her fifties, then.

As for workfare, she thinks “it would be good if [the unemployed] can give something back”. So this young woman, who joined the Conservatives for their economic policies, thinks it’s a good idea to remove paying jobs from the economy by making unemployed people do them – at the taxpayers’ expense – while the rate of corporation tax has nosedived so the host companies take all the profits? How will that help reduce the national debt?

And this is supposed to be an example of the brightest Young Conservative thinking. Oh my word. Oh dear.

Oliver Cooper, president of Tory youth movement Conservative Future, is still under the impression that his party stands for “economic freedom” – the party that, in government, has pushed millions onto the dole to keep wages down; destroyed much of Britain’s remaining industrial base, decimating the economies of entire regions of the UK, to undermine working-class self-confidence and security; de-democratised nationalised industries through privatisation; created a mushrooming of homelessness by promoting house ownership, creating a chronic shortage of social housing and perpetuating it by denying councils the ability to build more; and increased inequalities of income and wealth by cutting the relative value of benefits along with wages, boosting the social exclusion of the poorest in society.

This is supposed to show that it is cool to be a Tory again? Oh good heavens no. It demonstrates the “cancerous… classist and out-of-touch view of the modern middle class youth of today”, as Theodor Ensbury states in the comment column.

“Mix privilege with a lack of life experience … and you have a heady cocktail of political and social empowerment without understanding of consequences,” he adds.

There is much more of this, but there really isn’t any need to go into further detail. Read it yourself, if you can stomach it.

Today’s Tory youth, ladies and gentlemen: Ignorant, insular and insolent.

The last thing they deserve is responsibility.

I wouldn’t give them the time of day.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political seeks to enlighten, rather than perpetuate ignorance.
But this independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

If Osborne’s critics are wrong, why did the economy do exactly what we said?

Tags

austerity, benefit, claimant, cycle, death, economic, economy, fiscal, George Osborne, growth, help to buy, housing bubble, Iain Duncan Smith, inflation, keynes, long term, manipulate, manipulating, manipulation, Media, Mike Sivier, mikesivier, plan, purge, recovery, stagnation, stimulus, UK, unemployment, Vox Political, wage

What an embarrassment: George Osborne should be ashamed of the rubbish he spouted in his speech yesterday (Friday).

George Osborne is flailing.

He’s a desperate man, trying vainly to convince us that the current state of the British economy was his plan all along when anybody with half a brain can see it wasn’t.

Yesterday he was in Washington, trying to convince Americans that he knows what he is doing, but US economists are far too canny to accept anything he says at face value.

His principal claim was that critics of what he and the ConDem inner circle still laughably call “the government’s long-term economic plan” have been proved “comprehensively wrong”. Some of us would like to see his proof of that.

Back in 2010, when Osborne took over at the Treasury, trashed a perfectly good Labour-stimulated recovery and sent the economy into freefall, those of us with any sense said the situation would worsen until it hit the point at which the economy would stabilise of its own accord, without any interference from politicians. Then it would start to improve because demand would start to rise again.

We reached the lowest point possible in the British economic cycle; from there, the only way was up. That is why there is a recovery – and a mean, meagre little thing it is, too. We should be 20-25 percentage points above where we are. Instead, we’re 1.4 per cent behind our pre-recession peak and the money is going to the wrong people.

The only question you should be asking is why this Tory illiterate has held us back.

Osborne told America that the British economy was growing faster than any other in the G7 – which means nothing. When an economy has shrunk more than any other, it is easier for it to grow. It doesn’t mean that our economy will be bigger than the others, although that is certainly the impression that Osborne wants to convey.

He said the growth was “despite warnings from some that our determined pursuit of our economic plan made that [economic growth] impossible”. This was a lie.

Osborne knows perfectly well that nobody said growth was impossible. They said Osborne’s policy would delay any recovery, causing misery for millions of medium- and low-waged people and providing a spurious justification for his colleague Iain Duncan Smith’s purges of benefit claimants – actions that have caused many thousands of unnecessary deaths.

Apparently, to quote members of a previous Tory government, that is “a price worth paying”. For what?

He said: “Fiscal consolidation [austerity] and economic recovery go together, and [the economic turnaround in the UK] undermines the pessimistic prognosis that only further fiscal stimulus can drive sustainable growth.” This is not what the data shows. It shows, as already stated, that the British economy hit rock-bottom under Osborne’s guidance and has now started the long climb upward of its own accord. That is not an endorsement of his policy; fiscal stimulus along Keynesian lines would have arrested the decline and boosted the economy back into growth – as evidenced four years ago, when Osborne inherited an economy that had been growing for five consecutive quarters and sent it right back into decline.

Osborne claimed, yet again, that a Keynesian scheme would create more debt – denying the simple economic fact that the boost it would have provided would have put more money into the Treasury and cancelled the debt far more quickly than his cuts.

It’s obvious, really. Any growth is despite austerity, not because of it. If you take money out of a system, it’s harder for anybody to make a profit on which tax can be paid. Economics 101, George. But you studied history, didn’t you? And towel-folding.

We should also remember that in Osborne’s first Budget he promised – promised – a “steady and sustained” economic recovery. Instead, we had three years in which the economy flatlined. Then he brought in ‘Help to Buy’ – a very crude fiscal stimulus scheme that has created a housing price bubble that is hugely damaging for low earners while putting money into the pockets of people who don’t need it. The economy picked up, because housing relies on other industries, but the crash that is to come might create a worse situation than before.

Osborne wants us to believe that wages will start to rise above inflation, even though the experience of the Americans to whom he delivered his speech is that 95 per cent of post-recession growth went to the richest one per cent of the population. He wants us to believe living standards will improve, but there is no evidence for this at all.

It’s all just another big lie.

Just take a look around you and you’ll see the facts. Osborne was charged with keeping the economy on its knees because that is what the Tories needed, in order to suck the cash from the middle-class, working-class and unemployed people of the UK.

Tories need mass unemployment to maintain the UK as a low-wage economy, creating more profit for bosses while keeping the workers under the cosh.

They need stagnation in much of the economy in order to ensure that the deficit does not go away and the national debt rises, thereby making it possible from them to continue selling off the National Health Service and dismantling the welfare state.

They need a housing bubble in places like London, to ensure that it is too expensive for undesirable poor and middle-income people, ship them out to other towns that have suffered the planned decimation of their economic bases (in order to ensure that they could not make a better living there), and make the capital city a playground for the rich.

And they have done it all by manipulating the media into telling you the worst lies about your own well-being – lies like those in George Osborne’s speech yesterday.

The last 40 years of British history represent the worst decline in living standards for the British people in the entire history of our nation. Never before did we have as much as when the Conservatives came to office in 1979; never before did we have so much to lose.

And we gave it away to liars like George Osborne, just because they had honey on their forked tongues.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political deplores the planned impoverishment of the UK
… especially as we are in poverty ourselves!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here: