To Iain Duncan Smith – About this ‘Shake-up’..

Quote

By julijuxtaposed – first posted 28.08.15

 

Mr Iain Duncan Smith,

About this “shake-up“. Could you please find me a job that is tailored to my abilities whilst maximising my potential; one that pays me enough that I could live, not just independently but well; sufficiently that I would require no top-up credits. Of course, I’d still need to retain the gateway awards that I was once told were indefinite and unconditional (such as my DLA and Blue Badge); that recognise how my disabilities are not going anywhere, no matter how cross and determined you are that they will. I apologise for the way my life has unfolded so unhelpfully for everybody – including me – however, I don’t know what real and beneficial work I can do that will be meaningful to Society, will end any State dependence, won’t compromise my health and will satisfy your self-righteous values and relentless need for me to justify my monetary worth within your stupid socio-economic model.

You know that bit where you say “claimants should be made to take up any work they can, even if it is just a few hours”? Well I need a job that I can do as and when I have the physical and mental resources which fluctuate, daily, according to exhaustion, pain level, concentration, the day’s commitments, your downward pressure and my subsequent social anxieties and, consequently, mood, capacity, vulnerability and efficiency. I tend to have problems – even on good days – with travelling, sitting at a desk, walking and standing and my body is deteriorating, generally and specifically – my hands, most recently, to my great distress – from years of coping with my limits and, naturally, I’m not going to get any younger, either.

I’m probably not worth the time and money of an employer who wants me at a shop till or at a desk at a call centre or inputting data, say. And my days of being a cleaner, care-worker, etc are way behind me, now. Don’t get me wrong: I’m not ‘above’ such work – I’ve done many different jobs – but the idea that I’m suitable or capable now is silly. And the notion that it’s worth the financial cost to try to enable me to do such work for an hour or two, here and there, is laughable. I’d really love an actual career but I reckon I may be a bit long in the tooth, now and that the training, itself, would likely be physically inhibitive. Besides, there are plenty of young people who need the start far more than Society should need me to compromise my health further and inevitably cost everyone more as I prostrate myself to prove my sorry lack of market value.

You know that bit where you talk about “a system focused on what a claimant can do and the support they’ll need and not just what they can’t”? Well, my best skills are now reduced to the erratic ability to communicate what is in my mind with a certain amount of eloquence. So, if you mean it about the personalised help and support then perhaps you could fix it for me to be paid for the reading, observing, thinking and writing with which I have primarily learned to content myself? I’m sure you know many who are paid handsomely for doing far less. My best times are indeterminate and unpredictable points within a given 24-hour period, according to the spoons I have, minus those I need just to get through an uneventful day. Take them away from me and I will be a husk.

I’m not saying that there’s nothing I can do, at all or that I think I’m not a worthy human being. I’m saying I can’t jump your petty false-economy hoops and that I’m worth more than that. We all are. And I’m not saying that I’m more special than anyone else, either. I’m saying it has taken me a long time to create a productive life that I can bear, with the resources I have and that my well-being is more important than your shameful social experiments. I’m telling you that I think I would rather die than live the empty life you would prescribe for me. I will not be a scapegoat for your ignorance.

Workers Rights Attacked. “Unity is our Watchword!” : Jeremy Corbyn

Quote

Protecting the Workers

Trade Unions. They are part of the Labour movement, and we have so much to thank them for. They gave us the weekend, the eight-hour day, and the paid holiday. Now they need our help. Yet again, a Tory Government with an overall majority is trying to crush the unions. They want to be able to use people, as a cheap resource to deliver their wealth. They have no concern for safety, health, dignity or human rights.

Think Left’s article ( 114 year workers’ rights scrapped by coalition government) reveals how long-standing workers’ rights are being eroded by the Coalition government. With legal aid cut, high unemployment and rising costs of living, everyone can see people struggling. How many are aware of how poor workers’ rights and protection in the UK really are?

protection for permanant workers

It is no doubt politics which preys on disaster politics and fear. Fear and lies. The graph shows that protection of permanent working staff in the UK is appalling. The effect of Thatcher’s attack on trade the unions leading to decreased union membership can be seen in perspective. The power of money over the individual struggling alone is immense. One can see how struggling to feed one’s family puts worker against worker, and provides an opportunity for right-wing parties such as UKIP to move in on the scene.

The erroneous lines, “we’re all in it together”, and Cameron’s patronising Keep Calm Dear , while criticised and ridiculed are tolerated by those who believe austerity is necessary, and in  the myth of the need to cut structural deficit though several economists argue otherwise.

Unemployment

Recent figures show unemployment is on the rise again. Not only is this costly, it is a waste of human resources, has  an impact on mental health, and divides working people.

Recently, immigration has become an issue, because families are living in poverty, and are unable to get work.  Meanwhile, there are cuts to the social security protection because of government austerity measures which gives people no hope.  A divided working class is a malleable one. The Tories know that. Tony Benn knew. He said, “People who are poor, demoralised and frightened are easy to control.”  This whips up division and hatred like in the thirties. As Jeremy Corbyn said, “They are trying to reconfigure our society in the image of the 30s. I’m not sure if it’s the 1930s or the 1830s but certainly some kind of 30s.” And we know what that led to.

“The psychology of competition and love of Peace are uneasy bedfellows” Aneurin Bevan

Michael Meacher comments on the recent statistics

“UK unemployment, which is still as high as 1,850,000, is now starting to rise again.   Combined with the jobs standstill, the lack of momentum in pay makes this the most worrying set of labour market figures for a long time.   What is equally disturbing is that almost all the increase in employment since the 2008-9 crash has been accounted for by workers from the EU.   Employment among EU citizens born outside the UK has now risen above 2 million for the first time.   The latest figures point to falling demand for jobs, fewer hours being worked, and little or no evidence of a rise in pay.”

“In that first quarter employment among UK nationals fell by 146,000 while over the same period employment among workers from overseas rose by 91,000.   It also emerged that since 1997 the proportion of employment accounted for by non-UK nationals increased from 3.7% to 10.3%.” Michael Meacher MP

The government has just launched its latest salvo attacking our rights at work.

NUAW strikeThe government’s plans to cut rights for working people, are described in detail, in this document for the TUC (pdf link Trade Union Bill – TUC briefing )

The government expects the Second Reading on the Bill will take place in the House-of-Commons either in September of October 2015.

The main themes are listed here

  1. The proposals will lead to a serious imbalance of power within the  workplace, undermining effective negotiation between employers and unions.
  2. The Conservative proposals will undermine constructive employment relations, extending disputes and making it more difficult to achieve amicable settlements.
  3. The government is not interested in encouraging workplace democracy. Instead , they want to prevent midwives, fire-fighters, teachers and cleaners working within the Underground from protesting against cuts in jobs, pay and conditions.
  4. The right to strike and to protest are  fundamental rights which should be protected in a free and democratic society. The government proposals will impose greater restrictions on trade unions than any other voluntary secret membership organisations.
  5. The Conservatives claim to be the party of working people. However their proposals will remove  employees’ ability to achieve better working conditions and living standards.
  6. Employees will be able to bring in agency workers with a view to breaking strikes, regardless of the consequences for health and safety.
  7. Trade union protests and pickets will be subject to levels of public and police scrutiny and controls that go far beyond what is fair and acceptable in a modern democracy. These changes will also be a waste of police time.

These must be opposed, by protest groups, by trade unions, and also by the Labour Party. Jeremy Corbyn will stand alongside workers and supports Trade Unions. Unity is our watchword, within the Labour Party, and within the Movement. We need a strong opposition in parliament. It is not acceptable that MPs representing the heart of the Labour Movement are not wholly behind the defence of these fundamental rights. Following this leadership campaign, it is imperative that the Labour Party and the whole Labour movement are united in opposition. We need to be ready to oppose, because you can be absolutely certain that the Tories will be and they do not need any further advantage than they already have. Unity is our watchword. There are more of us, but we will only be heard by a cohesive opposition led by a strong leader, such as Jeremy Corbyn.

The government is trying to make it even harder for unions to collect fees from its members by banning public authorities from deducting fees-direct payslips. It’s designed to cut off yet more money from trade unions and hobble their ability to defend ordinary workers from bully boy employers.

It’s vitally important to show we will defend our trade unions from these government attacks. They’ve given us everything from the weekend to paid maternity leave. If they are hobbled by ideologically driven laws then bad employers across the country will be able to chip away at our hard-won rights.

“Sum of Us Campaign” is already nearly 80,000 people strong. Their campaign contact is listed below.

Our trade unions are worth defending. They protect ordinary workers — care workers, teachers, nurses, shop workers, cleaners — from poor conditions, low pay and unfair dismissal. But now they need our help. Share information, protest, and ensure that this time the government are countered by a strong, united opposition.

More information:

Neoliberal TINA Economics is Flat Earth thinking

Quote

By Prue Plumridge

Belief in a flat Earth is found in the oldest writings and early Mesopotamian maps showed the world as a flat disk floating in the ocean.  Thankfully things have moved on since that time and we now accept the proof that it is indeed a sphere spinning in space.

It is not difficult to imagine the reaction to those who challenged this view, such as Christopher Columbus, and the scepticism with which such ideas would have initially been received.  After all, if you’ve been told that you’ll fall off the edge of the world if you go too far, questioning that notion would have led to shaking of heads.  Those disputing the prevailing set of ideas or beliefs on the basis of “what if” would have been ridiculed, insulted or even physically attacked as fear of the new set in.

We have reached such a time in history now.  The destructive neoliberal status quo of the last few decades is being shaken to its core and there is an opportunity at last for a conversation about where we go from here and how we can bring about change.  It won’t be easy but Jeremy Corbyn has started the ball rolling by offering a radical vision which not only restores the core values of the Labour party and responds to a changing world but also opens up an opportunity for dialogue on such issues as climate change, finite resources and sustainable living.  It is a positive start.

Of course, those who have the most to lose will not let their power go easily and we are seeing that already with attacks on Jeremy Corbyn by the Establishment and business leaders and worse still, from his own party.  Only this week, an article in the Telegraph was predicting that Jeremy Corbyn’s economic plans will turn us into Zimbabwe and lead us to calamity.   We must, however, stand strong against such attacks which stem from fear and forge our future together.

People are starting to see through the decades long political neoliberal consensus which favours the magic of free markets.  But there is still a way to go and it won’t be easy.  It is vital that we ask questions and, even when, like the flat earthers, we find the potential solutions out of our comfort zone because it questions the long-accepted paradigm, we must not turn away.

Most people (including me) shy away from discussion of economics.  Mathematical equations and economic models dance before the eyes and shut down the brain like no other subject.  And yet the decisions made by our elected politicians are based on economic ideas which can wreak havoc on our lives and the lives of our families and friends or can, alternatively, be used for a public purpose to benefit those same lives.  Indeed, we are seeing the damaging consequences of those decisions today.  Dismantling our social security system, selling our publically funded public services to the private sector, deregulation, the watering down of employment and trade union rights and driving down of wages in the name of competition.  TTIP, TISA and CETA added into this mix will prove to be the final nail in the coffin of democracy.  It is, therefore, time to engage in a conversation and challenge those who have deceived us for so long.  We must ask ourselves what if the world isn’t flat at all?

Maggie Thatcher’s line “There is no alternative” is the usual excuse for continuing with the free-market ideology and the claim that continued austerity, balanced budgets and surpluses are vital to a successful economy.  We will all remember Liam Byrne’s infamous note, when Labour left power, saying ‘There is no money’.  That one stupid remark has allowed the deficit/debt reduction argument to dominate the economic and political landscape of the last five years and been used by David Cameron and George Osborne in a deliberate distortion of reality to justify cuts, the creation of a small state and private sector domination.

It is unfortunate that even some of the Labour elites are using the same loaded language which says that we must continue with such policies. Yvette Cooper, who has a PPE from Baliol College at Oxford, said recently “I don’t think the answer is what Jeremy has proposed, which is basically printing money that we haven’t got to build things”.  Her comment is symptomatic of her lack of grasp of wider economic ideas and yet, she, like many, has been a victim of the way it has been taught for decades in educational institutions. One might think that the doctrine of balanced budgets was the only game in town.

Regretfully, these ideas have been cleverly used to also deceive ordinary people that there is no alternative.  That we must accept the pain and balance our budgets in true Micawber style. The idea that the state should deal with the deficit and reduce the national debt has become a part of the narrative which is firmly fixed in the collective psyche. The problem has been reinforced by our experience of our own household budget which has to be managed to ensure we don’t go into the red or get into debt.

The first step is to ask questions. Don’t rule anything in or out – the world is a complex place much more so than even this simple presentation.

Most of us will remember from our history lessons, the 1929 crash.  The UK government’s response at the time was to balance the budget and re-establish confidence in the pound.  Public sector wages and unemployment benefits were cut and by 1931 unemployment had risen to almost three million. The march to London by the men of Jarrow is a symbol of that economic disaster which left thousands of people destitute and hungry.

One of the people who challenged that view was John Maynard Keynes who was fiercely critical of the then Conservative-Liberal coalition government’s austerity budget and wrote:

‘Every person in this country of super-asinine propensities, everyone who hates social progress and loves deflation, feels that his hour has come and triumphantly announces how, by refraining from every sort of economic activity, we can become prosperous again.” 

 

It is ironic, that when the coalition came to power in 2010, they chose to repeat an economic policy that had so singularly failed in the 1920s and 30s, and the Conservatives are promising more of the same over the next five years.

‘Insanity is doing the same thing over and over again but expecting different results’   Albert Einstein is once said to have observed.  But then one could ask the question is it insanity or a deliberate strategy?

To return to Keynes, his argument was, essentially, that in order to support full employment governments must use their spending power to invest in the economy on the basis that spending equals income to someone which is, after all, what makes the world go round. So when governments reduce public spending the result can only be higher unemployment.  Indeed in the last week we have learned that for the financial year so far the deficit was down £7.3bn (23%) but in the three months to June there was a rise of 25000 in unemployment.  To make the connections if we stifle spending to reduce the deficit then this can only have a detrimental effect on the economy by reducing the amount of money available to the non-government sector.

So where, may you ask, will the money come from to deficit spend?  When Yvette Cooper suggested wrongly as it happens that we can’t print money that we haven’t got to build things she was forgetting that electronic monetary resources were created to rescue the banking system in the form of Quantitative Easing which no-one objected to then, even though, basically, it disappeared into a big banking black hole.

Jeremy Corbyn’s People’s QE is quite another kettle of fish and this time those money resources would be used for public purpose that is for the benefit and well-being of society as a whole and not just a small section of it.  To put that clearly in the words of Professor Bill Mitchell:

“People would soon see the benefits in the form of better schools, hospitals, public transport, green energy innovations, more jobs, more diverse cultural events”

The response to these ideas has been one of panic-stricken hysteria, as emotive language such as ‘debt mountain’ is used by politicians and the media to scare the general public, by reinforcing the household budget model of our state finances and economy.  Let’s not forget the irony here that George Osborne has managed to achieve a debt mountain all of his own!

Professor Bill Mitchell’s conclusion should reassure the public:

PQE is an excellent strategy for the British government to introduce. It exploits the currency-issuing capacity of the government directly and uses it to increase the potential of the economy to improve well-being.

It is astonishing to realise that contrary to common belief sovereign governments start the ball rolling by issuing money, tax revenues are not necessary for a government to spend and that our national debt is not a debt in the usual sense of the word.

So, I can hear you ask:  what then is the purpose of tax?  I’ve heard that ‘printing money’ is inflationary?  And say that again our national debt is not a debt at all?

We must start with the first principle which is that, since the abandonment of the gold standard, sovereign governments like ours can issue as much money as it needs. Remember the money issued comes first, and not taxes.  This is a key point.  Without money in our pockets we can’t pay taxes anyway.

Beardsley Rumi former Chairman of the Federal Reserve wrote as long ago as 1946:

… given control of a central banking system and an inconvertible currency, a sovereign national government is finally free of money worries and need no longer levy taxes for the purpose of providing itself with revenue. All taxation, therefore should be regarded from the point of view of social and economic consequences.

What this actually means is that tax, far from being a revenue raiser, is a mechanism for what we can call public purpose meaning, for example, redistribution of wealth from the rich to the poor.  It also has the function of managing inflation by raising taxes to dampen demand, or reducing them to increase it.

Secondly, money issue by a sovereign state is not, in itself, inflationary. Politicians parading as prophets of doom are warning us that ‘printing money’ will cause inflation.  In an effort to scare people, we are reminded of Germany’s hyperinflation after the First World War or Zimbabwe’s in the 1990s.  In both cases, the truth of the matter is that these episodes could not be described in any way as normal – they were extreme events and not remotely like the situation in the UK or the US.  Of course in Germany’s case, the imposition of huge reparations in gold under the Versailles Treaty, the loss of 25% of its industrial capacity as a result of the war and then the occupation of the Ruhr when Germany defaulted forced them to increase the money supply which did not match its supply capacity.  So when exports then slowed and Germany could not continue to pay back its debts it led to the hyperinflation which was to have catastrophic consequences for the German nation both in the short and long term.

And herein lies the clue, if you keep on spending and can’t produce the goods to meet that spending, you’ll get inflation  Spending with no regard to whether there are enough resources to match it, is the cause of inflation not the money issue in itself.  So deficit spending is not the problem.  The issue is whether we have the resources to justify the spending and if we have, how we can use them effectively for the benefit of society as a whole.

We have almost two million people without jobs. People whose talents remain unused.  People who want to work despite the inference by government and irresponsible media that the unemployed are lazy and feckless which has become the prevalent myth, now accepted by the public as being true. The solution therefore is to invest in building new schools, hospitals, homes and green infrastructure as well as create real job opportunities so that people can make a positive contribution not only to their own well-being but that of their communities. Remember that spending equals income to someone, and so by using the resources we have, effectively and fairly, we can improve the lives of all. The deficit will only be a problem when all available resources are being used. And we are most certainly not in this position at the moment.

And this brings me, finally, to the notion of the national debt.  If, as is noted above, sovereign governments can issue money then it begs the question why do we have to borrow?  Well the reality is that we don’t.  Sovereign governments don’t need to issue debt. The real game is about corporate welfare as Treasuries and Bonds are sold to big investors who want a nice safe, risk free place to stash their money and get a guaranteed income flow.  Much like us when we transfer money from our current bank account to a savings account.   Where governments are the primary money issuers there is no reason why the national debt could not be scrapped. We wouldn’t have to worry about ‘paying it back’.  And, after all, how could you pay back the money supply?

The important thing for us to understand is that there is an alternative to the inertia of past decades.  We don’t have to accept it we have to challenge it.

The world is a complex place and full of uncertainty but we have been bewitched by a dogma that proposes freedom and everlasting growth on the backs of the people and the planet but which, in fact, is tying us in chains to the benefit of the few.  As Keynes observed in his book written in 1936:

The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes.”

The Post War Consensus is long gone and the positive outcomes of that consensus, being dismantled as we speak.  The ascendency of individualism over cooperation and all that entails is almost complete.  As Ha-Joon Chang wrote:

‘Many believers in the individualist view would sacrifice political freedom to defend economic freedom”

It is clear that such unrestrained pursuit of self-interest through the belief in the magic of free markets has proved itself wanting and resulted in huge disparities of wealth, impoverishment, inequality and unequal access to opportunity.

Whilst we need wisdom too, knowledge is power and so the more we are informed, the easier it is to challenge the lies of politicians and their media lackeys. It is not necessary to immerse oneself in economic models and mathematical equations to understand the importance of economic policies and their effects on society but if we are to move forward we must show those who would lie to us that we cannot be fooled any longer.

 

Resources and credits:

Steven Hail

Governments do not need the savings of the rich or their taxes 

Corbyn should stop saying he will eliminate the deficit

Zimbabwe for hyperventilators

PQE is sound economics but is not in the QE family

Correcting political ignorance and misconceptions

Printing Money does not cause inflation

Summer of Unrest: The Debt Delusion Mehdi Hasan

Economics: The User’s Guide  Ha-Joon-Chang

The Angry Birds Approach to understanding deficits in the Modern Economy

http://ineteconomics.org/ideas-papers/interviews-talks/demystifying-modern-monetary-theory

 

The “Angry Birds” Approach to Understanding Deficits in the Modern Economy

 

Additional links:

Austerity is a Political Choice not a Economic Necessity

Like heterodox economists, Semmelweiss was ignored…

The riddle of the deficit or (deficits for Dummies)

The motives behind Corbynomics

Nottingham meets the Modern Robin Hood, Jeremy Corbyn

Quote

Jeremy Corbyn has met tremendous support for people all around England, Scotland and Wales. This has not been seen in the Labour movement for generations.

Take a LOOK at the queues waiting to listen to Jeremy Corbyn speak in Nottingham, home to the original Robin Hood.

This has been nothing short of astonishing. LISTEN to the event here, in high quality audio.

Unite the Union hosted the rally  in Nottingham and  present these Speakers:

Jeremy Corbyn MP
Richard Murphy, Tax Research UK and Economics Advisor to Jeremy’s campaign
Manuel Cortes, General Secretary TSSA Union
Annmarie Kilcline, East Midlands Unite
Tony Kearns, CWU
Nadia Whittome and Umaar Kazmi, young Labour members
Chaired by Cheryl Butler, Leader of Ashfield District Council

From this NG Digital site you can listen to the excellent quality audio of this  event, or download the file on ITunes

Jeremy Corbyn’s campaign for the Labour leadership has electrified the contest and brought new ideas to a stale political system. He is Labour’s best chance of defeating the Tories at the next election and bringing back voters lost to the SNP, the Green Party and UKIP.