Was Panorama’s Presenter right about Corbynomics?


Panorama’s presenter, John Ware’s negative opinions were hardly hidden in ‘Jeremy Corbyn: Labour’s Earthquake’.  For example, he started by sneering that a Corbyn Town Hall meeting had all the fervour of a revivalist meeting (sub-text = crowd hysteria).  But then, he did a piece to camera, that really betrayed (at best) his ignorance or a deliberate attempt to mislead the public over the anti-austerity policies presented by the Corbyn team.

He said that if Jeremy Corbyn were to become Prime Minister, he would “order the Bank of England to print billions of pounds for a raft of new projects – roads, railways, houses…” and how would Corbyn pay for all this?  By collecting the £120 billion estimated to be uncollected tax receipts.

(at 18.28 mins http://www.bbc.co.uk/iplayer/episode/b06bg6ty/panorama-jeremy-corbyn-labours-earthquake )

Whilst it is perfectly true that Jeremy Corbyn wants to address the tax haven scams (which would include increasing the tax receipts), he has never suggested that this was the substance of his plans to resuscitate the economy.  Apart from a novel solution such as ‘QE for people instead of the banks’ Jeremy Corbyn’s fiscal stimulus is totally consistent with the sort of keynesian economic policies that were mainstream prior to New Labour’s capitulation to the economics of Margaret Thatcher.

I will leave it in the capable hands of the Renegade Economist, Ross Ashcroft to explain how politicians bailed out the wrong industry after the Great Banking Crisis in 2007/8 and what should be done now i.e. adopt policies that run counter to austerity and conventional mainstream economics.  In fact, precisely the sort of policies that Jeremy Corbyn is proposing.

Another economic crash is coming. How did this happen? Renegade Economist | Comment is Free

George Osborne failed to mention private debt in either of his budgets which is strange because his economic policies are dependent on increased household debt to sustain demand.

As a further treat, I include a one minute interview with Steve Keen in which he explains what’s wrong with mainstream economics.

What’s wrong with Economics? Professor Steve Keen explains – 16 Nov 2011

Uploaded on Nov 16, 2011

Steve Keen is Associate Professor of Economics & Finance at the University of Western Sydney. His main academic research interest is in developing mathematical models of Hyman Minsky’s Financial Instability Hypothesis. Prof. Keen’s best-selling book, Debunking Economics, delivers a powerful critique of modern neoclassical macroeconomics. He maintains a website dedicated to ‘analysing the global debt bubble’ at http://www.debtdeflation.com.

So was the Panorama programme a fair representation of Jeremy Corbyn’s economic policies?  The  conclusion has to be no…. The case for anti-austerity policies, as presented by Ross Ashcroft and Steve Keen, is overwhelming and long over-due, given the likelihood of another economic crisis.

First Conservative Budget in 18 years declares War on The Young and The Poor


The first Conservative Budget in 18 Years declares war on the Young and the Poor

From Alex Little: @alittleecon 

First Published here

The most eye-catching announcement in today’s Budget perhaps was the one about the “National Living Wage”, set to be introduced for over 25s next April at £7.20 per hour. This falls below the actual living wage of course, said to be £7.85 an hour outside London, but Osborne announced his intention to raise it to £9ph by 2020, which assuming the OBR’s inflation forecasts are right would actually see wages rise (outside London) to above the living wage by 2020. Iain Duncan Smith in particular seemed delighted: 

With this announcement Osborne also managed to make Labour leadership hopeful Liz Kendall look a bit daft after she announced last week that she would look for ways to get businesses to voluntarily pay the living wage.

What Osborne didn’t say of course, was that the lowest paid won’t actually be any better off (for the most part) as they will lose their entitlement to tax credits at a similar rate to the increase in the minimum wage. Even so, it seems to me better to have employers pay more and have the government pay out less in tax credits.

At the same time though, these changes don’t apply to those under 25 who still have to make do with a minimum wage at a much lower level.

It was Osborne’s announcements on changes to the social security system that are most controversial, and I would say cruel. He is practically ending benefits for young people, making poor students take on even more loans and worst of all cutting by £30 a week the amount new claiments of sickness benefit ESA (WRAG) are entitled to. He’s also freezing working-age benefits for 4 years. They are already at below subsistence levels. To me it sends a clear message about what people like George Osborne think about the poorest.

It’s a very 19th Century attitude to the poor. George Monbiot spelled out this attitude rather well in a recent column, but in summary, here are some of the underlying assumptions that form the basis of the proposed changes:

  • Those who are declared unfit for work will quickly turn into malingerers if they are given too much. Many are outright faking their conditions when they could get a job.
  • If you are unemployed, you must not be trying very hard to get a job
  • If you are young, you are basically lazy and unproductive and will do nothing useful unless forced.
  • Young people all have strong family bonds which they can draw on for support in hard times.
  • The only reason the low paid and poor have children is in order to claim more ‘welfare’. They must be stopped.

If these things are true, there won’t be much hardship suffered as a result of the new changes. People will just pull themselves together and find work. Those that don’t, obviously deserve only contempt. If they in fact turn out to be utter bullshit though…


Antidote to Osborne’s fairytale economics


Panel of leading economists discuss and debate the true state of the economy and the lies underpinning the Government’s austerity programme.

The panel includes:
Owen Jones, Journalist
James Meadway, Senior Economist, New Economics Foundation
Ann Pettifor, Prime Economics
Micheal Burke, Economist
Chaired by:
Christine Blower, General Secretary, NUT

This economic briefing was recorded just a few days ahead of George Osborne’s Autumn Statement… but none of the panellists came close to anticipating the level of hubris, triumphalism and double-dealing that accompanied the Osborne Autumn Statement.  It was a truly breath-taking performance!

Find out the real effects and intent of austerity that George Osborne and the Government don’t want you to know…


The People’s Assembly Against Austerity – Economic Briefing – 27.11.14

Dear Mr Miliband…


Thanks to Alderman Michael Poulter MBE for permission to reprint

From: Alderman Michael Poulter MBE

8th January 2014

Mr Ed Miliband MP,
Leader of the Opposition,
House of Commons.

Dear Mr Miliband,
Osborne’s Deficit Scam – The Excuse to Privatise, Outsource and Dismantle Public Services and the Welfare State

In his New Year Message, the Chancellor again exploits the alleged Deficit Crisis to trumpet a still imperative need for extended austerity and more severe cuts in Public Spending.  In William Keegan’s words (Observer 29.12.2013):

Coalition Ministers still proclaim the ‘Big Lie’ that it was all down to ‘Labour’s Mess’ 

From its inception, the Coalition claimed the National Debt was overwhelmingly large and that it must, therefore, cut public spending and public services dramatically in order to restore the economy to health.

But the Government’s claim is false.  The Deficit Crisis is a fiction and the British Public are being subjected to one of the bigger scams in British history.  There exists an impressively intellectual array of wise, educated and expert advice which tells us so.

Professor Robert Nield of Cambridge University is the foremost historian of the National Debt.  He analysed the Coalition’s claim and in effect rubbished it!  He authoritatively states that for the last three centuries the UK has maintained a National Debt without difficulty.  Much of that debt was higher than when the Coalition took power.  It did not look alarming let alone abnormal!  He says that the application of Government policies, justified by alarmism, is leading into unnecessarily deep recession.
Dr William Keegan ( Cutting welfare to ‘aid recovery’ is just a big lie ), quotes Brian Henry on ‘Coalition’s Economic Strategy’.  His careful analysis of the so-called structural deficit states it was no worse at the end of Labour’s pre-crisis years than it had been under the Conservatives, and that the Coalition seized the opportunity to impose a protracted fiscal contraction with the aim of reducing the Tax Burden.  Dr Keegan recalls John Le Carre’s powerful phrase about Coalition Welfare policy being tantamount to ‘planned penury’.  I think the emphasis here must be on the ‘planned’.

George Osborne and the Reinhard-Rogoff thesis – Before he took office Mr Osborne used this paper as key to his intellectual argument for the austerity programme – ‘Should Public Spending be cut to control deficits or should States pro-actively rekindle economic growth?’   Their deeply argued analysis said Public Spending should be cut!  Mr Osborne suggested that they offered perhaps the most significant contribution to understanding the origin of the financial crisis.  But an authoritative study by Herndon, Ash and Polin found their conclusion was based on faulty maths and spreadsheet error.  The assumptions and calculations (on which Mr Osborne based his policy) did not stand up.  This criticism of Reinhart-Rogoff is also supported by Larry Elliot, an economist of international repute.  The intellectual basis for the Deficit Reduction policy is deeply flawed.

Nobel Prize Winner, Paul Krugman explicitly denounces the Coalition Myth that the Deficit is unmanageable without cuts and great austerity!  He quotes Keynes:

“The Boom not the Slump is the time for austerity”

Robert Skidelsky, foremost commentator on Keynes, also supports the view that Britain’s public debt was far from from crisis point.

Will Hutton, Principal of Hertford College Oxford and public intellectual of great repute, comments:

“..we need Government not to cut but which steps in to halt the plunge in private demand.  We need public investment and job creation to survive as an economy.”

Joseph.E.Stiglitz is a Nobel PrizeWinner and former Chief Economist of the World Bank.  In his book ‘The Price of Inequality‘, he powerfully criticises ‘Deficit Fetishism’ of the kind exhibited by the Coalition and the risks to the Public Good inherent in the advance to Privatisation.  His is a powerful critique of Free Market Ideology.

What conclusion might now be drawn?  On the basis of these expert views the Coalition Policy is a sham!

I go along with John Harris (Guardian ,28.02.2011):

”Coalition has sneaked a coup on a sleeping public”  

He says that what is occurring throughout the Western World is the planned dismantling of Welfare States.  The alleged Deficit Crisis is being used as an excuse (as in Naomi Klein’s ‘The Shock Doctrine’) to shock/persuade people that the Public Sector and the Postwar settlement must be swept away as unaffordable!

Following Polly Toynbee’s excellent article in The Guardian ‘Tory outriders reveal the party’s direction of travel’, I wrote to her quoting the authorities I mention above.  Her immediate and personal response acknowledged their wisdom and suggested that Cameron had intended all this from the outset!

Cameron and Osborne use this ‘fiction’ of an overwhelming budget deficit to justify pre-planned privatisation and cuts in Public Spending (The Politics of Privatisation in Western Europe,1988).
Their cuts of 25-40% are thus causing the dismantling of our universally available Health, Social Service, Community Care, Education Services, Legal Aid as well as Pensions, Retirement and Benefits Provision and entitlement for which fair and proper taxation policies have paid in the past.

At the same time, they impose the headlong drive towards Privatisation and Outsourcing thus threatening not only Health and Education but Prisons, Probation, Policing and Court Services.
They enhance the interests of the large Corporate, Commercial and Financial organisations at the expense of the Public interest and the Public Purse rather than the majority democratic interest of all living in our communities. Cuts in Flood Protection are a recent case in point.

The Deficit Reduction Strategy ( “Lie” as described by William Keegan) underpins the Coalition’s entire political, economic and social/welfare policy.  As described above, it is clearly based on complete misrepresentation designed to mislead and confuse the Electorate and to blame Labour for the damaging policies being forced through.

Labour is thus unfairly and unjustifiably labelled as the cause of a Deficit Crisis which does not actually exist.  A lack of rebuttal seems to encourage the Chancellor and Ministers, in Parliament and out in the country, continuously to make statements about “the financial mess they inherited.”
Everywhere groups of people, in meetings, social gatherings and pubs, friends and acquaintances have all been imbued with the mindset of Deficit Fetishism .

But there are now within the country profound stirrings of support for a concerted challenge to this Coalition Lie.  This resides not only among intellectuals, economists, journalists and the Trades and Labour Movement but nationally and locally among many other people of good will concerned about the impact of this fixation on Deficit Reduction (in part the cause of the Cost of Living Crisis) and about the disastrous and dangerous direction in which the UK is being taken.  Their frustration and alarm could well be mobilised.  Notable among them must be the recent positions taken by both Archbishops, Justin Welby of Canterbury and Vincent Nichols of Westminster; ably supported it must be said by Pope Francis!  The significance of their Faith communities and their range of influence should not be underestimated!

I write this letter to suggest to you that the tide is beginning to change and thus brings a challenging opportunity for Labour.
You have a network of Constituency Parties, MPs, Parliamentary Candidates, Leaders and Councillors , Party Members and their friends within our Counties, Cities, Towns, Villages and Rural communities – all of whom could be mobilised to counter the Coalition Lie and to demolish the mindset of Deficit Fetishism.  Should this mobilisation occur, the ground would be well prepared for a much more healthy and constructive debate about the future direction of our society and the kind of ‘people-based’, democratically- orientated economy – the reconstruction for which so many would vote, in the next General Election.

Yours Sincerely,

Michael Poulter