Saturday 31 October 2015

31st October 2015

In 1983 Neil Kinnock warned people against embracing Margaret Thatcher as the next Prime Minister with his warning, 'Not to be ordinary. Not to be young,. Not to fall ill. Not to be old.

Thirty two years after the electorate ignored his warning and despite the intervening years of New Labour ascendancy with Blair and Brown, his words ring truer that ever and apply to an ever wider cross section of the electorate.

There is certainly little reward today in being a steelworker, in being low-paid, in being an immigrant or asylum seeker, in being young, in falling ill or becoming elderly.

The current furore over tax credits, a constitutional crisis according to Cameron and Osborne more accurately described by Jeremy Corbyn as a crisis for three million families.

Despite repeating his question six times Cameron avoided answering six times, repeating instead the current mantra of the Tory Party:

A high-pay, low-tax, low-welfare economy.

This meaningless phrase sits alongside the other meaningless phrase repeated again and again by this Tory Government of a country:

Living within its means.

Apart from the sight and sound of two millionaires lecturing people on the need to live within their means, (and George Osborne and David Cameron are not the only millionaires on millionaire row, the net worth of the Tory front bench is estimated at 70 Million with 18 of the 29 members of the Cabinet also qualifying as Millionaires) it is the hollowness of the phrases that emerge in the debates about hard working families when all the evidence points clearly to the fact that most of those three million who rely on tax credits are the very same people who work hard to earn their poverty.

Over the five years of the Tory led coalition wages in fact stagnated or fell back so that it is only now that wages are approaching levels last seen at the end of the New Labour era. So far from actually delivering a high wage economy the pursuit of austerity has resulted in lower investment, lower wages, and lower productivity.

The rhetoric employed by Cameron and Osborne is empty and hollow, we do not have a high-pay economy and are unlikely to see one emerge any time soon. The proposed national living wage is nothing more than a trick with mirrors, legerdemain, sleight of hand and as our manufacturing capacity collapses (first we sell it to Asian Businessmen who finally, because they cannot make a profit and there is no Government support withdraw because it is their only realistic option, why go down with a sinking ship?) so we become increasingly reliant on service industries or as Cameron suggested, self-employment, neither of which sectors offer the possibility of transforming a families budget overnight.

Alongside death, taxation is one of the few things of which we can be certain in this life. For Daniel Defoe, in his 1726 book, The Political History of the Devil, only: things as certain as death and taxes can be more firmly believed unless of course you are someone who is considered to be outside the circle of those subject to a shared responsibility for contributing to the, common good, so the better connected you are, the better your lawyers are, dependent on where you base your head office or where you claim to be trading from and which country, you may or may not pay tax, HMRC will doubtless cut you a deal and the cabinet will look out for its own.

As Leona Helmsley was quoted during her trial, We don't pay taxes. Only the little people pay taxes.

Low taxes for some then.

But welfare also needs, according to Cameron and Osborne to be lowered, because as a country we need to, live within our means. 

How is welfare to be lowered? What is welfare? How are our means determined?

Britain is in fact a rich country, determined by both our domestic product and spending power Britain is the second largest economy in Europe, and fifth and tenth respectively in the world.

Because our manufacturing base has eroded with jobs exported both to Europe and to Asia so our service economy has grown and in particular financial services. Alongside this re balancing of our economy, because money flows into the single largest financial services centre in the UK, London so London has become more prosperous and wealth has gravitated South. Alongside this process so inequality has grown, the rich have become richer (as have the poor) but the imbalance has grown larger and larger as the rich become richer still.

As a nation living within our means would be relatively easy if our means were distributed more fairly and concepts like the Common Good, were owned by those who through good fortune, inheritance, hard work or  simple luck had achieved a more financially secure position.

Welfare is often taken to mean benefits, it certainly appears to be the mission of Ian Duncan Smith to define welfare as benefits, and with each new measure he introduces so benefits are reduced whether by singling out those with a spare room, or those who, through disability find work difficult or impossible he focuses our attention on benefits. But welfare is more, far more than benefits.

In 1945 the rhetoric of the Labour Government was rich and challenged the nations conscience. homes for heroes, education for all, treatment free at the point of need. It was a vision for which people of this country had fought two bitter wars, it was the Kingdom of Bevan.

It was the earnest socially rooted vision of a society that was just and fair, and I benefited from it.

The nightmare (it is certainly not a vision) of Cameron and Osborne is of a society increasingly divided between rich and poor, a society at odds with itself, a society where the young bear the weight of student debt into their adult lives, a society where home ownership becomes a remote financial possibility, a society of uncertainty and insecurity, a society of mac job's, serving lattes to machismo bankers.

The key to understanding welfare is to define the word:

Welfare, as defined in the OED means: the health, happiness and fortunes of a person or group.

The question facing Cameron and Osborne is not Jeremy Corbyn's question it is Neil Kinnock's.

In what way will a high pay, low tax, low welfare economy bring health, happiness and fortune to children, to young people entering adult life, to families in work or out, to the sick, to the elderly?










Wednesday 7 October 2015

7th October 2015

I cannot bear to watch the news this week.

The Tory Party parading its narrow minded mendacity in Manchester.

Even the Guardian Newspaper has no choice but to report what is being said from the platform which makes for difficult reading.

If it is possible to draw any comfort from this pantomime of the vanities which is being played out in Manchester it comes from Greece, not the Greece of anti-austerity Syriza and Yanis Varoufakis, but the Greece of Herodotus.

Herodotus, a Greek Historian, born in Turkey in 485 BC.

Herodotus was credited with inventing history as a form of critical study and in his writings drew attention to the two great Tectonic Plates of History.

Hubris and Nemesis.

So I take comfort from my Herodotus as I see the pictures and the read the reports of the drama being played out in Manchester: Ian Duncan Smith advising the disabled to work (whilst showing no understanding of the tragedy that disability can mean for the individual so affected and their families), or Theresa May vilifying the stranger and the refugee in our midst (and being criticised not only by charities but by the IoD!) or George Osborne, declaring that Jeremy Corbyn spoke at a fringe meeting (as he will continue to do for the next five years), or David Cameron announcing how house building will start happening once builders can build for sale and not for rent.

And all this rhetoric set against the realities of what is happening not only Globally with climate  change and conflict in Syria, Iraq and Afghanistan which is displacing people from the Middle East and Africa, but what is happening locally in the lives of those affected by the reductions in Tax Credits, the increase in food bank dependency, the closure of the steel works in Redcar.

I make no great claims at understanding what fundamental shifts are taking place in the economy either in the UK or in China, but what is clear as I read Piketty and Stiglitz is that as inequality grows so the future becomes more precarious and as automation and technological change advance relentlessly, so precariousness shifts its way up the social strata from blue to white collar workers and obscene wealth aggregates to what we now call the 1%.

Manchester was the scene for the Peterloo Massacre which happened on the 16th August 1819.

Poor economic conditions and a lack of suffrage in Northern England resulted in a demonstration held in St Peter's Fields in  Manchester.

Some 60 - 80, 000 people gathered to protest and listen to speeches. The Magistrates deployed the Military to disperse the crowd and a Cavalry Charge with drawn sabres killed 15 people and injured over 500.

The tragedy was christened Peterloo in an ironic reference to the Battle of Waterloo fours years earlier.

Clearly the Tory Party have chosen Manchester to emphasise their aim of stealing Labour's ideas and promoting the Northern Powerhouse under the Chairmanship of postman's son. Lord Adonis, who despite his name is not, as far as I know, Greek.

As neither was Herodotus, but his survey of Greek History serves to remind us that if there is one great truth to be drawn from history, and this should perhaps be a warning when the Tory Leadership is unable to treat the Labour Leadership with the courtesy that fellow MP's should offer one another, that Hubris is always followed  by Nemesis.

So, and it is a small comfort, but I take comfort from seeing and hearing Tory Hubris at its loudest and most grating in Manchester, because I know that it will end in tears.