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Voters of Newark, what were you thinking?

06 Friday Jun 2014

Posted by Mike Sivier in Democracy, People, Politics

≈ 31 Comments

Tags

boss, by election, Conservative, constituency, corrupt, Democrat, disability, disabled, disenchanted, Ed Miliband, human rights, in work benefit, inept, legal aid, Lib Dem, Liberal, marital rape, National Health Service, newark, NHS, Parliament, privatisation, privatise, Queen's speech, rickets, salary, shareholder, sick, social security, tax, Tories, Tory, tuberculosis, unemployment, voter, wages, welfare, zombie


The result: The Tory who won is so unremarkable that I've forgotten his name. More interesting is the chap in the big hat behind him; at first I thought he was the Monster Raving Loony candidate, but it seems more likely he's one of the voters.

The result: The Tory who won is so unremarkable that I’ve forgotten his name. More interesting is the chap in the big hat behind him; at first I thought he was the Monster Raving Loony candidate, but it seems more likely he’s one of the voters.

One has to ask what is wrong with the people of a Parliamentary constituency when, after four years of a desperately inept and corrupt Conservative-led government, they decide to elect another Tory as their representative in a by-election.

Which of the government’s policies clinched it for you, Newark? Was it the brutality inflicted on people who are out of work – particularly those with long-term illnesses and disabilities? Does the fact that people are being driven to suicide at an almost-hourly rate turn you on?

Was it the determination to push your wages down in order to inflate bosses’ and shareholders’ salaries, forcing a higher take-up of taxpayer-funded in-work benefits? Do you like paying high taxes to support the very, very rich?

Was it perhaps the ongoing privatisation of the NHS? Do you think that’s healthy for the people of Britain? Perhaps rickets hasn’t yet reappeared in your constituency but it’s just a matter of time. Are you looking forward to getting tuberculosis?

Maybe you are looking forward to the government’s Legal Aid changes that will put innocent people in jail and leave criminals free to roam your streets and victimise you any way they want?

Or do you really want a Conservative majority in Parliament so they can push through their long-cherished dream of taking away your human rights? Is that what you want?

That’s what your votes supported!

Worse still, you put UKIP in second place. UKIP! The party that, besides supporting the destruction of the NHS (you’ve come out very strongly for private healthcare, Newark, I hope you know that) wants to put your taxes up (although they’re trying to hide that now because people found out and didn’t like it), and supports marital rape.

Way to go, Newark.

At least you had the good sense to kick the Liberal Democrats down to sixth place and the loss of their deposit – but that just means you’re schizoid, Newark! You reward the Conservatives for policies that are a hazard to your health, and punish their coalition partners for the same reasons!

Way to go, Newark.

It should be noted that turnout was just 52.67 per cent. Presumably the other 47.33 per cent are the “disenchanted” voters of whom Ed Miliband spoke so eloquently in his response to the Queen’s Speech (did you hear the Queen’s Speech, Newark? She listed 11 more-or-less pointless bills put forward by a zombie Parliament – which you have supported).

Let us hope those 34,779 lost voters can be persuaded to re-engage with democracy in time for next year’s general election, and restore sanity to your constituency.

Now go away, Newark.

You really don’t deserve all this attention.

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

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

05 Monday May 2014

Posted by Mike Sivier in Benefits, Cost of living, Economy, Employment

≈ 13 Comments

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.

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.

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Food bank debate shows yet again the government’s argument has no substance

20 Friday Dec 2013

Posted by Mike Sivier in Bedroom Tax, Benefits, Children, Cost of living, Disability, Employment, Employment and Support Allowance, Health, People, Politics, Poverty, Powys, Tax, UK, unemployment, Universal Credit

≈ 39 Comments

Tags

bedroom tax, benefit, Brecon and Radnorshire, child, Conservative, corporatist, cost of living, cut, David Cameron, debate, delay, Democrat, disappear, esther mcvey, exponential, finances, food bank, fuel, Gerald Kaufman, government, Iain Duncan Smith, increase, Jamie Reed, joseph rowntree foundation, Labour, laugh, left, Lib Dem, Liberal, Lord Freud, manage, Michael Gove, Mike Sivier, mikesivier, minister, New Life Church, Opposition, Paul Murphy, poor, poverty, price, ran, rise, Roger Williams, run, shadow, slash, social security, stagnant, stagnate, stagnating, Tories, Tory, turn tail, Universal Credit, Vox Political, wages, walk out, welfare, work


131219foodbanks

By now, we should all know how these Opposition Day debates go – but Wednesday’s discussion of food banks was one of the best examples I’ve heard.

The form goes like this: The relevant Labour shadow minister launches the debate, quoting the facts that support the argument (in this case, that the rise of food banks is a national disgrace and the Conservative-Liberal Democrat government’s policies have caused it), the government denies the charge – always with the same feeble excuses, backbenchers queue up to tell their own damning stories of what has happened to their constituents… and then the government wins the vote because its members have been whipped to vote against the motion, rather than because they believe it is wrong.

The food bank debate was textbook. Not only did it carry all these features, but:

  • The Secretary of State responsible, Iain Duncan Smith, declined to speak at all, but turned tail and ran after listening to only a small number of speakers.
  • Minister of State Esther McVey, who spoke in his place, delivered what Labour veteran Gerald Kaufman described as “one of the nastiest frontbench speeches I’ve heard in more than 43 years”.
  • As one story of government-created hardship followed another, Conservative MPs laughed. Clearly they are enjoying the suffering they are causing across the UK.

Each of these is a damning indictment of the depths to which the Coalition has driven British politics. But the debate is only half of this matter. Now it is our duty to publicise what happened. Many people may not know about this, or may not understand its significance.

They need to understand that food bank use has risen exponentially under David Cameron’s Conservative-led government, from 41,000 people in 2010 to half a million by April this year, one-third of whom were children. People are resorting to them because the cost of living is rising while wages have stagnated and social security benefit payments have been delayed or slashed. The government promised to publish a study on food banks in the summer of this year, but has delayed publication with no stated reason. The government department responsible – DEFRA – did not even put up a minister to speak in the debate.

Probably the most damning indictment was the vote. The Coalition government defeated a motion to bring forward measures that would reduce dependency on food banks. The obvious conclusion is that this government is happy to be pushing ordinary working and jobless people into crushing poverty – and intends to continue putting more and more people in the same situation for just as long as it possibly can.

We heard that:

  • People in Slough are fighting each other over discount fruit and vegetables in the local Tesco.
  • Food banks are visited by skilled workers who are unable to get jobs because of Coalition government policies.
  • Serious failures including administrative error in the benefit system mean one-fifth of the people visiting food banks are there because the Department for Work and Pensions has been unable to do its job properly.
  • The Bedroom Tax has hugely increased the number of people using food banks.
  • “The working poor are emerging as the Prime Minister’s legacy, as millions of people live in quiet crisis.” (Labour’s Jamie Reed).

In response, the Tories trotted out the old, old arguments, trying yet again to sell us the long-disproved claim that Labour forced the country into poverty by mismanaging the national finances. We heard, again, the turncoat Lord Freud’s claim that people were visiting food banks because the items there were free (ignoring the fact that everyone who visits a food bank is referred by a qualified organisation, and verified as being in crisis). We heard, again, the suggestion from our ignorant Education Secretary Michael Gove, that people are turning to food banks because they cannot manage their own finances (good management makes no difference if costs outweigh income; but then he clearly hasn’t been educated well enough to understand that).

Esther McVey’s speech showed clearly why she should have remained on breakfast television, where comparatively few people had to put up with her. She accused the previous Labour government of a “whirl of living beyond our means” that “had to come to a stop” without ever pausing to admit that it was Tory-voting bankers who had been living beyond their means, who caused the crash, and who are still living beyond their means today, because her corporatist (thank you, Zac Goldsmith) Conservative government has protected them.

She accused Labour of trying to keep food banks as “its little secret”, forcing Labour’s Jim Cunningham to remind us all that food banks were set up by churches to help refugees who were waiting for their asylum status to be confirmed – not as a support system for British citizens, as they have become under the Coalition’s failed regime.

She said the Coalition government was brought in to “solve the mess that Labour got us in”, which is not true – it was born from a backroom deal between two of the most unscrupulous party leaders of recent times, in order to ensure they and their friends could get their noses into the money trough (oh yes, there’s plenty of money around – but this government is keeping it away from you).

She said the Coalition had got more people into work than ever before – without commenting on the fact that the jobs are part-time, zero-hours, self-employed contracts that benefit the employers but exploit the workers and in fact propel them towards poverty.

She lied to Parliament, claiming that children are three times more likely to be in poverty if they are in a workless household. In fact, according to the Joseph Rowntree Foundation, in-work poverty has now outstripped that suffered by those in workless and retired households; children are more likely to be in poverty if their parents have jobs.

She attacked Labour for allowing five million people to be on out-of-work benefits, with two million children in workless households – but under her government the number of households suffering in-work poverty has risen to eight million (by 2008 standards), while workless or retired households in poverty have risen to total 6.3 million.

She claimed that 60,000 people were likely to use a food bank this year – but Labour’s Paul Murphy pointed out that 60,000 people will use food banks this year in Wales alone. The actual figure for the whole of the UK is 500,000.

She said the government had brought in Universal Credit to ensure that three million people become better-off. There’s just one problem with that system – it doesn’t work.

She said the Coalition’s tax cuts had given people an extra £700 per year, without recognising that the real-terms drop in wages and rise in the cost of living means people will be £1,600 a year worse-off when the next general election takes place, tax cuts included. She said stopping fuel price increases meant families were £300 better-off, which is nonsense. Families cannot become better off because something has not happened; it’s like saying I’m better off because the roof of my house hasn’t fallen in and squashed me.

Then, on top of all that, she had the nerve to tell the country, “Rewriting history doesn’t work.” If that is the case, then hers was one of the most pointless speeches in the history of Parliament.

Labour’s Jamie Reed had the best comment on the debate. He said: “The final verdict on any Government is based on how they treat the poorest in society during the hardest of times,” after pointing out that “the laughter from some of those on the Government benches … says more than words ever could.”

On a personal note, my own MP, Roger Williams, spoke about the food bank situation in Brecon and Radnorshire. It is gratifying that he is proud of the food bank set up by New Life Church, here in Llandrindod Wells – I well remember the telephone conversation I had with the organisers, in which I encouraged them to set it up. I am glad they took up the baton – and that he has appreciated their work.

Rather more worrying is the suggestion that he considers a possible new food bank in Brecon to be only the second in our constituency. There are food banks in many other towns, including Knighton, Ystradgynlais and Hay-on-Wye – with satellite facilities in smaller towns and villages. It is disturbing that the MP does not seem to know this.

Follow me on Twitter: @MidWalesMike

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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

≈ 23 Comments

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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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Gauke’s attack should be a rallying cry for Labour

06 Tuesday Aug 2013

Posted by Mike Sivier in Conservative Party, Economy, Labour Party, People, Politics, Poverty, UK

≈ 13 Comments

Tags

alistair darling, attack, austerity, BBC, blacklist, Coalition, Conservative, cuts, David Cameron, David Gauke, Democrat, economy, Ed Balls, Ed Miliband, fall, George Osborne, Geraint Davies, Gordon Brown, Jack Lew, Labour, Liberal, lie, Matthew Hancock, mess, Michael Meacher, Mike Sivier, mikesivier, myth, never had it so bad, observer, Oxford Journal of Economic Policy, pay cut, spending, tax avoidance, The Independent, Tories, Tory, Treasury Secretary, Vox Political, wages, whistleblower, William Keegan, zero hours


Another fool who doesn't think before speaking: David Gauke, pictured here with jaws clamped shut in a desperate attempt to prevent his foot from leaping into his mouth. It would serve him right if his ill-judged attack on a Labour MP brings the entire party and all its supporters together for a concerted attack on the Conservative-led coalition's silly and baseless policies.

Another fool who doesn’t think before speaking: David Gauke, pictured here with jaws clamped shut in a desperate attempt to prevent his foot from leaping into his mouth. It would serve him right if his ill-judged attack on a Labour MP brings the entire party and all its supporters together for a concerted attack on the Conservative-led coalition’s silly and baseless policies.

Tory Treasury tax-avoidance fan and whistleblower-basher David Gauke’s attack on the Labour Party is yet another shot in the foot for the Government That Can Do Nothing Right.

His ill-judged, ill-timed remark that Labour MPs were “turning on each other” is more likely to galvanise Her Majesty’s Opposition into more co-ordinated and powerful attacks on Coalition ideology and incompetence – especially after we learned the Tory claim that they inherited an economic mess from the last Labour government was nothing more than a blatant lie.

“They don’t really have anything to say and they’re now turning on each other and I think their own backbenchers are beginning to realise that the Labour leadership haven’t really got a voice,” Gauke told the BBC in response to a piece by Labour’s Swansea West MP, Geraint Davies, in The Independent.

In doing so, it seems Gauke was trying to distract attention from what Mr Davies was actually saying – which is worth repeating here, because it is likely he speaks for a huge majority of Labour members who are becoming increasingly frustrated by the contradictory and self-defeating behaviour of their leaders.

So what does Mr Davies say?

First: “The electorate doesn’t yet see a clear choice between the parties on cuts vs growth.” This is because Labour has promised not to reverse Conservative-led ideological cuts and to keep spending at Tory-set levels for 2015-16, if returned to office at the general election – even though the Conservatives have decisively lost the argument on austerity. It simply isn’t necessary.

Second: “The Tories have been relentless in asserting that Labour messed up the economy. Not rebutting this charge makes us look like a shamefaced schoolboy admitting responsibility by omission.” Mr Davies makes a second good point here – more so because, as William Keegan reported in Sunday’s Observer, the spring issue of the Oxford Review of Economic Policy exonerates the last Labour government of any economic wrong-doing. Gordon Brown and Alistair Darling did the right thing – and it is worth reminding everybody that the Conservatives, at the time, supported their actions. That was when the Tories were led by – who’d have thought it? – David Cameron and George Osborne, just as they are now!

The Observer article went on to note that US Treasury Secretary Jack Lew has also endorsed the Labour government’s actions in his recognition that demand in our economies must be stimulated. Conservative-led Coalition policy has drained demand away. This is why the smart commentators are pointing out that the unforeseen upturn in the UK economy in recent months has nothing to do with government policy; it’s just that things had to get better, sooner or later.

Third: He puts up his opinion – that a Labour government should boost the UK’s productive capacity “by linking industry, universities and councils. We need a sharper focus on the growing export opportunities to China, India, Brazil and Russia. We must invest in homes and transport, use public procurement as an engine to grow small and medium-sized firms…. We need to continue a journey towards jobs and growth, not to be diverted into a cul-de-sac of more cuts.”

The last comment dovetails perfectly with the attack launched by Labour this week on the Coalition’s record – which claims the average worker will have lost £6,600 in real terms between the 2010 election and that due to take place in 2015.

Paraphrasing former Tory PM Harold Macmillan, Labour said many workers had “never had it so bad”, pointing out that David Cameron has presided over a more sustained period of falling real wages since 2010 than any other prime minister in the past 50 years.

The Tories’ only response has been to repeat the lie that the Coalition was clearing up a “mess” that we all now know for certain Labour neither created nor left.

Conservative business minister Matthew Hancock was the one voicing it this time, so voters in his West Suffolk constituency please note: This man is a liar. You must not trust him.

And of course David Gauke weighed in as well. He’s the minister in charge of tax – who was revealed to have worked for a firm specialising in tax avoidance. Do you trust him? He’s also the minister who reportedly green-lit a plan to discredit Osita Mba, a solicitor with HM Revenue and Customs, after he blew the whistle on the notorious Goldman Sachs “sweetheart” deal that wrote off millions of pounds in interest charges on tax owed to the UK Treasury by the multinational corporation. A trustworthy man?

David Gauke is the MP for South West Hertfordshire. Voters there may wish to reconsider their opinion of him.

What these chuckleheads are missing is the fact that Mr Davies is not a lone voice in the wilderness; his article expressed the opinions of a wide majority of Labour members and voters.

And it cannot be coincidence that only a day after his Observer article appeared, veteran Labour MP Michael Meacher weighed in on his blog with a few opinions of his own about what Labour’s leaders should be saying.

“Will the Labour party declare it is opposed to zero hours contracts and will end them?” he wrote (perhaps after reading the Vox Political article on that subject).

“Will it show it is opposed to blacklisting by making it an imprisonable offence, prosecuting the 44 companies who indulged in it if convicted, and making it sure that all the 3,213 building workers secretly subject to blacklisting are informed of the cause of their up to 20 years’ joblessness and fully compensated? Will it say loud and clear that a decade of pay cuts for those on the lowest incomes is flagrantly unjust when the 0.01 per cent richest have not only not paid any price, but have seen their wealth continue to grow untouched?”

This is the sort of fire Labour members and voters want to see from the leaders. There is nothing to fear from tissue paper-thin Tory arguments and outright lies. It is time to stand up for Labour principles, damn the Tories for their evil, damn the Liberal Democrats as fools and dupes, and set out a plan to get the ship of state off the rocks and into calmer waters.

If Ed Miliband, Ed Balls, and the rest of the Labour front bench have any sense, they’ll realise that continuing with the course they have set will put them in a tiny minority that cannot possibly hope to win the next election. Alignment with Geraint Davies, Michael Meacher and the millions like them should ensure an overwhelming victory.

It isn’t even a choice, is it?

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Democracy in the UK – or What is your MP doing in your name?

12 Friday Jul 2013

Posted by Mike Sivier in Conservative Party, Economy, Labour Party, Liberal Democrats, People, Politics, Poverty, UK

≈ 12 Comments

Tags

agricultural, arrogance, assessment, Blairite, board, Conservative, cumulative, democracy, impact, Jobseekers (Back to Work Schemes) Act, Labour, Mike Sivier, mikesivier, MP, neoliberal, not in my name, safe, seat, Tories, Tory, Unite. union, Vox Political, wages


They Work For Themselves.com: Michael Gove may well have told IPSA to "stick" its pay rise but you can be sure that this is a publicity stunt. And how long will this principled stand last when his colleagues all take the money?

They Work For Themselves Not You.com: Michael Gove may well have told IPSA to “stick” its pay rise but you can be sure that this is a publicity stunt. And how long will this principled stand last when his colleagues all take the money?

There’s a strong smell of arrogance coming from Westminster at the moment – an attitude of “What are you going to do about it?” to everything. Am I wrong?

On one side we see Labour, trying to divest itself of union influence – and therefore its last link to its working-class background. Ed Miliband thinks the middle class is where the votes are, and he’s absolutely determined to ruin his entire organisation in a vain attempt to prove it. He’ll turn Labour into a plastic copy of the Conservative Party (in the course of which, of course, he’ll also have to change its name. You can’t be the Labour Party if you don’t represent people who work. I understand the word ‘Tory’ is going spare). Trouble is, there is already a Conservative Party. If your politics leans to the right anyway, why support the copy when you can have the original?

The Tories know this. They reckon Labour will self-destruct in fairly short order, leaving the way open for them to continue doing exactly anything they like – as they have been for the past three years and more, despite never having been voted into power by the British people, because they have support from the Liberal Democrats – who are enjoying their very last taste of any national political power.

Both the main parties are sneering at you. They think they know that you will stick to your traditional choices when election time rolls around again: Labour or Conservative. And they know that this means they will be allowed to continue doing whatever they want, against the wishes of the nation in most cases.

That’s how our version of democracy works. You get one chance to vote for the organisation that will rule over you for the next five years. Your decision is nominally based on the promises they make in their various manifestos (many of which will be broken. These documents are rarely worth the paper on which they’re printed), but most likely to be based on habit and an impression of what each party stands for – one that is no longer likely to bear any relationship to reality. Your influence is diminished by the fact that most Parliamentary seats are ‘safe’. The voting population is locked into a particular pattern and each political party can ‘parachute’ its own favoured candidates – people who will support the leaders’ policies, no matter what the wishes of their constituents – into those seats and be assured of support from these drones over the next five years. This is why Labour and the union Unite have been at loggerheads recently – Unite wants candidates who genuinely represent the people of their constituencies; Blairite Labour wants neoliberal, party-propping drones. It looks like Blairite Labour has won the battle, meaning the Labour Party will lose the war; how are they doing in the polls?

So elections are determined on the basis of a tiny number of marginal or ‘swing’ seats. Do you live in a marginal constituency? No? Then your vote probably doesn’t count.

It seems to me that, if we ever want to see democracy in the UK, we need to make it possible for EVERY seat to become a ‘swing’ seat – make it a much harder job for the large parties to ‘parachute’ in their party faithfuls and open up the field to candidates from smaller parties (not just UKIP). But how?

The answer’s obvious, isn’t it? You make sure everyone in your constituency knows exactly what their MP has been doing in their name. Only an informed electorate can make useful decisions, after all – and government of the uninformed is not legitimate government at all.

For example: My MP is a Liberal Democrat backbench drone called Roger Williams. I’ve known him for years and thought he was a nice enough fellow. In fact I voted for him at the last election. It was a tactical vote to keep the Tories out (foolish, in hindsight) – but he has let me down on many major votes, and I’m about to give you two examples.

My constituency is Brecon and Radnorshire – the most rural in England and Wales. It relies on agriculture for much of its income. Therefore it was a shock to our economy when the Westminster government voted to dissolve the Agricultural Wages Board. I cannot currently find any information about how Mr Williams voted on this issue of major importance to his constituency.

I can, however, report his fellow Liberal Democrats’ response to the Welsh Government’s plan for a replacement body covering Wales – they oppose it.

The AWB ensured consistent wages among agricultural workers, and prevented disputes over pay and conditions. Abolishing the board removes recognition of workers’ unique skills, bringing with it a significant pay cut. It is also a mark of disrespect.

In Brecon and Radnorshire, cuts to state benefits will take an average of £433 from working-age people’s incomes – more than a week’s take-home pay where wages are only around 76 per cent of the national average. The loss of the AWB means a significant extra cut to the local economy.

According to Lib Dem AM Bill Powell, his party doesn’t want the Welsh Government to “ram through” this emergency legislation “without allowing Assembly members and committees to scrutinise their proposals fully”.

Perhaps he is forgetting that Mr Williams voted in March to help the Conservative Party “ram through” emergency legislation on the Work Programme in a much quicker and undignified way, in order to prevent jobseekers from claiming back the £130 million that had been stolen from them in illegal sanctions by the Department for Work and Pensions?

So we see that my MP’s party supports the abolition of the AWB, and my MP supported the retroactive law. Both were acts of repression; both were pieces of legislation I oppose. Did he act according to my wishes? Most assuredly not. But he acts in my name.

Oh yes… He also voted against a cumulative impact assessment on the effects of benefit cuts on people with disabilities.

Should he – or any Liberal Democrat – represent Brecon and Radnorshire after 2015? Absolutely not – it would not be in the best interests of the constituency.

But we shouldn’t tolerate anyone from the other parties who preaches freedom for us but practises similar policies of repression.

That’s the message that needs to go out:

“Not in my name.”

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Labour’s latest welfare betrayal means the party could change name to ‘Red Conservatives’

06 Thursday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Disability, Economy, Labour Party, Media, People, Politics, UK, unemployment

≈ 64 Comments

Tags

BBC, bill, Blue, budget, cap, cause, Child Benefit, child poverty, Conservative, death, die, disability, disabled, dying, Ed Miliband, employers, George Osborne, health, help, industry, Jobseeker's Allowance, Labour, law, Liam Byrne, Mike Sivier, mikesivier, mislead, National Health Service, NHS, pay, Ralph Miliband, red, rent, safety, sick, social security, spending, Tony Benn, Tories, Tory, unemployment, univeral, Vox Political, wages, welfare, William Beveridge


Red Tory betrayal: He might as well have said, "We're going to grip the poor by the throat and push them down so far and so hard that they'll never be able to get on their feet again."

Red Tory betrayal: He might as well have said, “We’re going to grip the poor by the throat and push them down so far and so hard that they’ll never be able to get on their feet again.”

The Red Conservative Party has announced a new policy attack on people receiving benefits, in its latest bid to out-Tory the Blue Conservatives.

Ed Cameron announced that he would impose a three-year cap on any welfare spending not linked to the economic cycle, stealing an idea put forward by George Osborne of the original Conservative Party during the March budget.

He also vowed to make people work for two years before they qualify for a new, higher rate of Jobseekers’ Allowance.*

Shadow work and pensions secretary Iain Duncan Byrne said the cap would force a Labour government to engage in long-term reforms necessary to bring the welfare bill down.

Neither man actually spelled out which benefits would be affected by the cap.

But Ed Cameron tried to salvage his party’s reputation in the eyes of left-wing supporters by promising to drive down rents and improve pay.

And in a contradictory move, he said he would not abandon the long-standing goal of abolishing child poverty by 2020, even though his new policies mean that, inevitably, more children will suffer poverty through no fault of their own.

Cut through the spin and the above is, pretty much, what has been announced. The Labour Party is becoming even more right-wing, rather than less, as the Tory tabloids claimed when Ed Miliband became the leader.

It seems that failing to reverse the abolition of universal child benefit was just the tip of the iceberg, Ed Miliband’s father, Ralph Miliband, must be spinning in his grave… In fact, he’s probably drilling his way through the Earth’s crust towards countries unknown, in the same way I said William Beveridge must be, after Liam Byrne’s Guardian article on the welfare state in 2012.

What we’re seeing isn’t really a conversion to Conservatism – although the retention of critically dangerous neoliberal elements at the top of the party structure means this will continue to be a threat. It’s actually worse than that.

This is a Labour Party that goes any way the wind blows.

Does anybody remember the great Tony Benn’s comments about politicians being either signposts or weathercocks? It has been mentioned previously, in this blog. He said some politicians are like signposts. They point in the direction they want to travel and say, “This is the way we must go!” And they are constant. Others are like weathercocks; they lick their fingers, find out which direction the political winds are blowing and follow.

The Guardian illustrates that Miliband has become a cock in its article, stating that the new announcement “is seen as critical to Labour being able to claw back its poll deficit on welfare and show its ability to take tough decisions”.

It will do neither.

If Labour wanted to “claw back its poll deficit on welfare” it would be announcing new policies to tackle the causes of unemployment, sickness and disability, in order to ensure that unemployment was never again likely to rise as high as it has. This means helping industry; it means restoring the National Health Service; it means making sure employers – especially the really large ones who think they can get away with anything – conform strictly to health and safety laws and can’t blame employees’ work-based sicknesses on anything other than their own negligence.

It means setting the terms of a new debate on this issue – not meekly accepting the Conservatives’ warped frame of reference.

Because, you see, that doesn’t indicate an “ability to take tough decisions”. Nor does copying an idea already mentioned by a Conservative. Tough decisions are those that the public might find hard to accept at first – about policies that might need to be explained before they are accepted. Labour isn’t making any tough decisions. It is following the Conservative/Coalition example and that simply is not good enough.

The Guardian article says Labour hopes the electorate “will focus on the party’s decision to take a credible and specific stance on the deficit, after three years of low growth, rather than punish Labour for its apparent volte face [about turn] by ending three years of criticism of welfare cuts”.

There is no chance of that happening. The electorate is not stupid and I predict that those parts of it that have supported Labour as a force for working people, those who want to work but are unemployed through no fault of their own, and those who have been invalided out of work, again through no fault of their own, will desert the party en masse. Miliband and Byrne might pick up a few right-wing votes – but not enough to make a difference. They will lose far more than they will gain.

Note particularly that line about “ending three years of criticism of welfare cuts”. They’ve stopped criticising the Conservatives/Coalition about cuts that are literally ending UK citizens’ lives at an alarming rate. That is not – and will never be – justifiable on any level at all.

Let’s not forget that an average of 73 people a week are dying as a result of Conservative/Coalition policies on benefits – possibly many more, as this figure is nearly a year old. A Labour government that would allow this to continue is not an electable Labour government.

This announcement marks the beginning of the Conservative victory in 2015.

Thanks for nothing, Ed Miliband. Thanks for nothing, Liam Byrne.

Shame on you, you sell-outs.

*Interestingly, the Blue Conservative mouthpiece BBC misleadingly reported that Labour believed “only people who pay into the system for more than two years should get Jobseekers’ Allowance” at all! This seems to be an inaccuracy but it is damaging and more people will read it.

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GDP figures due – will Gideon have anything to show for his austerity idiocy?

23 Tuesday Apr 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Economy, Liberal Democrats, People, Politics, Tax, UK

≈ 4 Comments

Tags

austerity, bank, benefit, benefits, business, Chancellor, Coalition, Conservative, debt, deficit, Department for Work and Pensions, dip, down, DWP, economy, Ed Balls, effect, fiscal, fund, George, George Osborne, Gideon, government, haven, Iain Duncan Smith, IMF, infrastructure, international, investment, Mike Sivier, mikesivier, Monetary, multiplier, national insurance, offshore, Osborne, people, politics, public, recession, Revenue, security, social, social security, spending, tax, Tories, Tory, trickle, triple, unemployment, VAT, Vox Political, wages, welfare


Triple-dip breakfast: Will we all be dining on the sour cereal of recession again, when GDP figures are published on Thursday morning?

Triple-dip breakfast: Will we all be dining on the sour cereal of recession again, when GDP figures are published on Thursday morning?

Thursday will be another ‘crunch’ day for our part-time Chancellor of the Exchequer – he’s having quite a lot of those lately, isn’t he?

Only last week, the academic justification for his austerity policy was disproven by an American student (oh, the shame!), and then his former allies at the International Monetary Fund distanced themselves from him (oh, the betrayal!) saying he should calm down a bit.

That’s the best advice this columnist has ever heard the IMF provide; if not for his own health, then for the nation’s.

Thursday, though, is a really big day. On Thursday, GDP figures for the first quarter of 2013 will be published.

It is a sign of how low expectations have fallen, that all the economic commentators are saying the best we can expect is to have kept out of a triple-dip recession – with falls in output due to the weather, among other things, making that unprecedented outcome more likely.

There is a problem with all of these predictions, which should be obvious to those of us living in the real world: Short-termism.

It’s all about how the UK managed in the last quarter, how it will manage in the next; what the situation is today. What about six months from now? What about next year? What about 2015, when we’re all expecting an election and the chance to banish this nightmare? What about 2017-18, when 0sborne still reckons he’ll have eliminated the budget deficit (fat chance)?

The fact is that the only options open to a Chancellor in the current climate are unpalatable to the Boy.

He could boost investment in infrastructure, in a bid to make this country a better place to open – and carry out – business. The trouble is, this tends to be a long-term project and he no longer has the time. His chances would have been better if he had started this in 2010, but his government cancelled as many such projects as they could back then, claiming it was more important to cut public spending in order to balance the books.

That was a vain hope. Without new investment, the country has lost revenue.

But if that is unpalatable, the other alternative is likely to make him choke on his pate de foie gras (or whatever it is these posh boys ingest): Increase the spending power of the poor.

It is known that the ‘trickle-down effect’ is a myth – giving all of a country’s money to the very rich, in the belief that they will spend it, boosting the economy and the income of the poor, is nonsense. What they actually do is bank it – in offshore tax havens, most likely. That is what 0sborne has been doing; it is another reason the economy has bombed.

It is also a rock-solid fact that poor people do spend their money – or as much as they can get their hands on. When you are constantly struggling to make ends meet, it’s very hard to keep cash in the bank – you have to spend it on food, clothes, rent, heat, light, water… the list is endless, because it constantly repeats.

When you don’t have much cash, as Edmund Blackadder once said, you feel like a pelican. Everywhere you turn, there’s a large bill in front of you.

That money does work for society. It reinvigorates the economy as it filters through different hands. And it brings with it the extra joy of fiscal multipliers – every pound that gets put into the economy is worth more after it has been through.

The trouble is, Gideon shut off that money supply. He raised VAT, making it harder for working-class people and those on benefits to buy certain economy-boosting products, and then he and Iain Duncan Smith spent the last few years on their project to depress wages.

(For clarity, it goes like this: The DWP makes the benefit system so difficult to navigate that people in receipt have to do their utmost to get off-benefit as soon as possible. This means they are constantly looking for jobs, which in turn makes it possible for employers to refuse pay rises for their workforce, with the classic line that “there are plenty of other people who’d be happy to have your job, you know!” You didn’t really think the benefit cap was about making work pay, did you?)

Say what you like about Labour, but they’ve got the right idea when it comes to the money supply. Ed Balls wants to cut VAT; he wants to bring back the 10 per cent tax rate for the lowest-paid; he wants to bring in a National Insurance holiday for companies that agree to take on new employees.

These are measures that will help.

What is Gideon going to do?

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Why are you complaining? The economy is running exactly according to plan!

25 Friday Jan 2013

Posted by Mike Sivier in Conservative Party, Economy, Politics, UK

≈ 7 Comments

Tags

alistair darling, benefit, Boris Johnson, bullingdon, business, Carwyn Jones, Chancellor, close, Coalition, Conservative, credit, Credit Crunch, creditor, danny blanchflower, David Cameron, death spiral, double-dip, economy, George Osborne, IMF, International Monetary Fund, investor, John Major, john maynard, keynes, Liberal Democrat, Office for National Statistics, ONS, private sector, profit, propaganda, public, public relations, rating, Sky News, spending, Tories, Tory, Treasury, triple dip, wages


Celebrating Britain's ruin: The Bullingdon boys rave it up in Davos - David 'Flashman' Cameron (centre, facing us), George 'Slasher' Osborne (left, back to us), Boris 'Zipwire' Johnson (right, back to us)

Celebrating Britain’s ruin: The Bullingdon boys rave it up in Davos – David ‘Flashman’ Cameron (centre, facing us), George ‘Slasher’ Osborne (left, back to us), Boris ‘Zipwire’ Johnson (right, back to us)

Confirmation has come through from the Office for National Statistics that the UK economy shrank in the last months of 2012.

It’s no surprise – you only had to look at the shop sales figures for December to know that something was going wrong.

The poor performance has negated the effects of the growth bump in the previous quarter, when the economy improved by 0.9 per cent, boosted by the London Olympics.

The official Treasury line is: “While the economy is healing, it is a difficult road.” Healing? Total growth for the whole of 2012 has flatlined. Again. If the economy was a hospital patient it would need a sharp electric shock to get it going again (but we’ll come back to that)!

The total economic growth since the Conservative-led Coalition government came into power is 0.4 per cent; less than that recorded during the first quarter of the Parliament when the government was still working under Labour Chancellor Alistair Darling’s spending rules.

“Today’s GDP figures are extremely disappointing, but not surprising. We warned the UK Govt their cuts were too deep, too fast,” said Carwyn Jones, the Welsh Government’s First Minister.

“UK Government cuts to capital investment in major infrastructure projects is causing damage to our economy. A new plan for growth and jobs should now be a major priority for the Prime Minister and the Chancellor of the Exchequer.”

Economist Danny Blanchflower tweeted: “-0.3% lack of growth comes as no surprise but is appalling this was made in #11 Downing Street. The question is what is Slasher going to do?

“Given that the coalition in June 10 predicted growth would be +6 per cent and we now have +0.3 per cent we are entitled to know what went wrong. One-twentieth won’t do.”

Sky News ran with this: “Osborne says Britain faces a difficult economic situation and that he will confront problems to create jobs.”

Comedy Prime Minister David Cameron received early warning of the figures, and responded by having a slap-up meal with his Bullingdon chums Gideon George Osborne (the man responsible for the mess) and London’s comedy mayor Boris ‘zipwire’ Johnson.

Osborne later responded: “We can either run away from these problems or confront them, and I am determined to confront them so that we go on creating jobs for the people of this country.” What jobs?

In fact, this is the very predictable result of the Conservatives’ ideology-led dogma, that put a project to shrink the state ahead of prosperity.

The Tories have always wanted to pin the blame for our debt woes on the state. They suggest that we are in crisis because public spending got out of control, and that this is what happens when the state gets too big.

But this is a fantasy, unsupported by any sound economic analysis and designed to pursue a reckless plan that puts the economy and long-term recovery at risk.

The image of a bloated state getting fatter on taxpayers’ money while crowding out a budding private sector is nothing but propaganda, and here’s why: Before the credit crunch, public sector debt was less than 40 per cent of national income – it was the private corporate sector that was out of control, with debt at almost 300 per cent of national income.

The Tories wanted to say the private sector was being crowded out by the public sector, but in fact, it was being propped up by it.

Those of us who listened to the experts knew that cutting would make things worse, rather than better, but we heard yesterday that Osborne is now ignoring the advice of his former bosom-buddies at the IMF and intends to keep chopping away at the carcass, presumably until there’s nothing left at all.

The same experts, last year, were warning of a double-dip recession – or what legendary economist John Maynard Keynes called the “death spiral”. Now we’re facing a TRIPLE-dip. We haven’t just entered the death spiral; we’re well into it!

Osborne’s solution is to cut benefits and wages so that people have less money to spend on the UK economy. With less money in circulation, shops will close and businesses will go to the wall. Foreign investors will turn away from a nation where they will see there is no profit to be gained. Creditors will start to worry and our credit rating will suffer. By the next election in 2015, there may not be any life in UK business worth mentioning.

Does anyone remember when David Cameron said, “The good news will keep on coming”?

He’s a public relations man, you see. His skill is in saying the opposite of what he means, in order to make a message palatable to the public. You could say he’s not very good at it, because his greatest feat was to persuade the British public to reject his Conservatism a little less harshly than that if all the other Tory leaders since John Major – which is what made it possible for him and Osborne to put us all in this mess by forming a dirty backroom deal with the Liberal Democrats.

I’d like to talk to some of the people he persuaded to vote for his squalid little gang of cutthroats. What would they have done, if they had know what would happen?

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The High Street implosion is just beginning

19 Saturday Jan 2013

Posted by Mike Sivier in Business, Conservative Party, Economy, Liberal Democrats, Politics, UK

≈ 19 Comments

Tags

Amazon, barber, BBC, benefit, benefits, Blockbuster, boutique, business, chemist, clothing, Coalition, Conservative, constructive dismissal, cut, debt, deficit, demonstration, dentist, doctor, drop, economy, food, furniture, game, government, grocery, hairdresser, high street, HMV, Jessops, Liberal, Liberal Democrat, LoveFilm, market, Mike Sivier, mikesivier, NHS, Parliament, people, politics, Question Time, retail, sale, social security, Tories, Tory, unemployment, Vox Political, wages, welfare


highstreetI had a look at the BBC News website’s business page yesterday. What do you think caught my eye?

“UK retail sales fall in December“

It seems sales dropped off by 0.1 per cent (seasonally adjusted figure) last month, while the quantity of goods sold rose (rose? shurely shome mishtake, unless prices have magically dropped) by a worse-than-expected 0.3 per cent.

Isn’t December supposed to be the busiest shopping month of the year, with everyone rushing to buy Christmas presents and get the food in? I know the news wasn’t totally awful – sales were still up 0.7 per cent on the same time last year – but it does look like a darkening of the skies before the storm blows in.

Online sales increased, as one should reasonably expect – this is the current trend. But what I found worrying was the drop in sales of both clothing and food. They did “notably badly”, according to the BBC.

I would have thought these were two sales areas that would be relatively internet-proof. With clothing and food (and furniture), people like to see what they’re getting. They want to test it first, to make sure it fits their standards.

My concept of the High Street of the Future would have included clothes shops (or boutiques if you want to be all King’s Road about it), grocery stores (not necessarily supermarkets – how about farm-gate stores or farmers’ markets?), furniture stores, chemists and hairdressers/barbers. With possibly the odd gadget/technology shop for people who don’t trust the postman with fragile items. Also private doctor and dentist surgeries, for those who can afford to pay for them as the future gets worse for the NHS.

The rest will probably go. Blockbuster is closing 160 stores, according to the BBC business site today. That doesn’t surprise me in the least. Bosses should have seen the writing on the wall, when digital delivery became an option, and diversified into it. They didn’t; LoveFilm and the like took over and that was that. People who like holding physical copies of movies in their hands can get them from the glorified mail-order companies like Amazon, if they don’t mind giving their money to tax avoiders.

That’s why HMV lost the battle last week. Now I see that Game wants to buy some HMV stores. Wasn’t Game itself in danger of going out of business last April? I think it was, and I wouldn’t expect a business bought by such a firm to last very long, for that reason alone.

We have already discussed, in a previous article, the demise of Jessop’s.

To cap it all, panellists on the BBC’s Question Time last Thursday said a further 140 UK high street shopping chains were facing severe financial difficulty. One hundred and forty!

And that’s just at the moment.

What will happen after the government’s cuts to benefits kick in, ensuring that the poorest in the country, who use the highest proportion of their money as they receive it, have much, much less cash to spend?

Think of the rise in unemployment, as one retail chain after another hits the dirt. The growth in demand for social security (the government calls it “welfare”) benefits; the need to borrow even more money, increase the national debt even further; the increasing number of derelict buildings as our cities’ shops go empty – along with more and more homes, as families fail to keep up rent payments (their benefits won’t cover it) and they get kicked out onto the street; the lights going off across the UK as the Tory-led Coalition, helped by the Liberal Democrats, turns our home towns into ghost towns.

Let’s pause for a moment to remember that the Coalition government inherited an economy that was growing. It wasn’t booming, obviously, but it was going in the right direction. The very first thing this government did was kill that growth, and much of its economic policy since 2010 has been intended to make sure it stays dead.

To shrink the state. To starve the beast.

To end the social security system.

To privatise the NHS.

To increase unemployment.

To keep wages low – and maybe even find opportunities to cut them.

We’ve got two more years with these chumps in charge. That’s plenty of time to ruin the UK beyond repair – or at least so badly that it will take decades to recover.

I think it’s time to put serious effort into making life as difficult as possible for them. we’ve had a few demonstrations in London over the last couple of years – perhaps it’s time to start putting something up every week, even if it has to start with only a couple of people standing outside the Houses of Parliament with banners saying “Coalition Out” and “Resign”.

If they want information from you, in order to put their changes into practice, find a way to slow the process as much as possible – obviously not in situations where there’s a threat to life and limb, but in other administrative ways, why not? Think of it this way: They want to complicate your life – why not return the favour?

In employment law, there is an offence called ‘Constructive Dismissal’. This is when an employer contrives to make a particular employee’s working life so difficult that he or she is effectively forced out the door. There is no such offence relating to the way a nation treats its government.

I’m not an advocate of violence; I’ll take passive resistance every time.

So let’s constructively dismiss the Coalition.

How about it?

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