A Tale of Two Deaths – NHS and Private Health Care

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Some years ago, two good friends died within a few months of each other … M (female aged 63) in the plush surroundings of the private wing of a London Hospital…. the other, P (male aged 56) in a NHS hospital in the Wirral.   Their personal circumstances could not have been more different.   M had a very comfortable, successful professional life whereas P was one of Thatcher’s casualties, consigned to the benefits scrap heap and unemployed since the 1980s.

I’m write now, because the manner of each of their deaths offer such a vivid picture of why we need to fight for the reinstatement of the NHS and a National Care Service… why privatization and financialisation of our health needs lead to the two tier contradiction of too much for those who can pay and too little for those who can’t.

M became increasingly ill with ‘a mystery’ illness only a few months before her death.   Eventually, she was admitted onto the private wing of a vast NHS hospital, in one of the wealthiest areas in central London. When I visited, I waited on leather bound settees, in a plush carpeted area decorated with original art works on the wall and filtered coffee on tap.

I have no doubt that M received state of the art medical treatment in her palatial room, with magnificent views over the London skyline.   However, when I last saw her, she was desperately phoning her husband to get onto the private health insurer because they had refused to fund the treatment that her consultant wanted to prescribe.

This was only two weeks before her death. She lay prone in her bed, with oxygen feeding into her nose. Her skin colour perfectly matched that of her white sheets. But, nevertheless, she was forced into worrying about the funding for her treatment because it was above that which the private insurer could authorize and ‘their special committee would not be able to consider the claim until after the weekend’.

I watched on, as she tried to explain over the phone to her husband that he needed to make the health insurer understand the urgency of the situation. Her desperate husband asked if they couldn’t just pay for the treatment outright. ‘No’ explained M. ‘The consultant says that any additional payments would invalidate the insurance plan and the insurers would then withdraw all payments for the hospital room and her care’.

I cannot describe my horror at the situation.

 

In contrast, P received the most extraordinary surgery and expert care in his NHS hospital without any financial limitation.   Through a freak accident, he had managed to dislocate his shoulder and somehow ruptured his oesophagus… I never got a very clear picture of how. Nevertheless, many weeks after 3 hours of surgery and a 3’ long incision spiraling around his torso, he had ‘recovered’ sufficiently to be sent home.

P lived alone, had had major surgery and yet there was no aftercare… no follow up. An extremely elderly neighbour (without a car) did a bit of shopping for him and that seemed to be it.

P was a highly intelligent, well-read socialist… a friend, made online.   We never actually met… so I cannot give the details as to why he did not receive help from social services or health checks from his GP… but I know that I made him contact the doctor after a few weeks when he confessed that he couldn’t eat and whenever he drank anything, it burned his whole insides!  That was the first time that he’d seen a doctor since leaving hospital.

Unfortunately, his oesphagus had split again and he was re-admitted to hospital for more expensive surgery. He lingered on for a few weeks before finally succumbing to a lung infection from which he eventually died.

I am not for a moment suggesting that either of these two deaths resulted from medical negligence.

But sumptuous surroundings are no compensation for the additional nightmare of exceeding your insurance policy’s spending limits…

And, there is little point in state of the art surgery if there is no aftercare in the community.

Under the Tories (with the help of the LDs in coalition) we are inexorably moving towards the two tier system of the US even though they spend more per capita on health and have worse outcomes.

The truth is that when there is a profit motive, the rich are over-investigated, and the poor are under-treated.

Stuart Hall despaired, in 2012:

“How can millions of people have benefited from the NHS and not be on the streets to defend it? Come on. The NHS is one of the most humanitarian acts that has ever been undertaken in peace time. The principle that someone shouldn’t profit from someone else’s ill health has been lost. If someone says an American health company will run the NHS efficiently, nobody can think of the principle to refute that. The guiding principles have been lost.”  https://www.theguardian.com/theguardian/2012/feb/11/saturday-interview-stuart-hall

 

Today’s demonstration may be later than he wanted but the many thousands turning out to march today must have pleased Stuart Hall.

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The Labour Party under Jeremy Corbyn pledges:

‘We will end health service privatisation and bring services into a secure, publicly-provided NHS. We will integrate the NHS and social care for older and disabled people, funding dignity across the board and ensure parity for mental health services.’

http://www.jeremyforlabour.com/pledges

The only question is what sort of health service will we be left with after 10y of Tory asset-stripping?

 

That’s why it’s called a ‘struggle!’

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By Theresa Byrne, previously published here
Ok I’ll start in the traditional style, and confess: I pinched the headline from Jeremy Corbyn’s speech to Scottish Labour. But it summed up my feelings and emotions over the last few days. Yes politics is a struggle, yes it is a constant push for progressiveness. And that is why most of us are in it.Change is not easy, whether it is changing a habit or changing a mind set. That is a psychological and emotional given. The Labour party is about change. Change in society, change in economics, change in politics. Many within the party forgot that after 1997, because the changes in society that were introduced were easily done. And were in many ways relatively superficial.

Take an example. The National Minimum Wage was introduced in 1999. It was profound in many ways, as the government said via the Low Pay Commission ‘this is the minimum people can be paid’. Many people on very low wages received a significant increase in their wages, the threatened job losses never materialised in the numbers forecast, the amount of the NMW slowly crept up, and the Tories accepted it as inevitable. But the amount of the NMW was not a significant amount of money, not really enough to live on and still required additional benefits from both government and local councils in order for families and people to survive. The concept was excellent but the execution left much to be desired. The underlying philosophy of poorly paid jobs with poor prospects was not directly challenged by the government, it was accepted. A superficial change to the pay structure was introduced but the two or three tier job market remained. Where was the necessary investment in manufacturing that could have created better jobs? Where was the governmental challenge to repeated outsourcing of work by business which encouraged the minimum level jobs and eventually to zero hours work?

Opportunities to challenge and significantly change the way society operated at an economic level were missed by the Labour Government between 1997 and 2010. We missed the chance to have the arguments and discussions about the links between taxation and public services, preferring to allow PFIs to pay for new hospitals and schools, and to allow the financial services bubble to pay for other investments. We did not regulate the financial markets so the crash that happened in 2008 caused horrendous problems to the economy and to people, as the Government scrambled to save the banking industry. We also then allowed the Tories to set the myth that we overspent, even when they had agreed with our spending plans back in 2007.

If we had made the case for taxation paying for public services, people would have understood that Labour was not overspending. We were providing those services such as the Health Service, social care, education etc in common, as common goods where we share the responsibility and the cost of provision together because we share the goods. We pay for the services, they are not ‘provided’ for us through a vague government spending concept but through taxation paid by everyone and a progressive taxation system where the more income you have the more you pay is the balanced and fair way to tax. But this argument was not made. And by the time we needed to challenge the myth it was too late, our opportunity has passed by. We have to remember that in 1997 the schools, hospitals and local services were in such a dire situation that the people understood that (i) a new government was needed and (ii) that serious investment was demanded. That was our opportunity to make the case for taxation to pay for the services and people were open to us, to our new ideas. We failed to make that case. Again we superficially changed by investing through PFIs but the underlying philosophy of linking taxation to public services as a part of a civilised society to challenge the economic view of taxation as a necessary evil that should be reduced for a small state was not made.

Our struggle now must be to understand, explain and argue for fundamental change in society, in economics and in politics which is what Jeremy Corbyn is about. The policies he has put forward, with John McDonnell, about investment in housing, in education, in the Health Service and local government, in secure jobs are all direct challenges to the neo-liberal free market knows best economics that have been in existence for over 30 years. The struggle is about asking questions about people’s perceptions, talking with them about why we believe that investment in housing is not just good for providing a home but for jobs, for increasing taxation in the economy, allowing people to establish themselves and build a community. Talk with them about the importance of security in work, how it builds community, allows children to feel secure, allows more people to become active and involved in their local community at a volunteer level because they can relax and not worry so much about still having a job tomorrow or next week. Talk with them about a good quality Health Service where having a serious illness is not a cause for money worries but an opportunity to focus on the importance of getting better, or dealing with the psychological consequences of illness. Talk to people are having a good social care system integrated with health, housing, community links so that elderly people, those with disabilities can be part of the community and know that their needs are being dealt with not just adequately but well and with respect.

We are facing a challenge, the challenge to change and more importantly to struggle to get our voices heard. We are being challenged but we must rise to the struggle together. We have a leader who wants us to be with him, to stand alongside him in the fight. If we are to be true to our comradeship, then we stand shoulder to shoulder, in solidarity with Jeremy Corbyn ready for the struggle, for the fight. We are doing it with and for the people, lending our strength and voice to their struggle as all in solidarity. We must not be found wanting, and I am sure we will not be. We will change the world, to a world of peace and justice where no one and no community is left behind step by step by step.

Pensions: Thatcher’s vision is coming to fruition

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Society is indeed a contract. It is a partnership…. not only between those who are living, but between those who are living, those who are dead, and those who are to be born”  Edmund Burke, Reflections on the Revolution in France 1790

Pensions: Thatcher’s vision is coming to fruition by Prue Plumridge

At the end of last year the Institute for Public Policy Research published its ‘Future Proof report’. It painted a bleak picture for British citizens by 2030.  It suggested that, unless solutions were sought, an ageing population would place a huge and unsustainable burden on the public coffers.

In 2013, The Intergenerational Foundation published the results of a survey of 50 of the UK’s leading thinkers on economics which was entitled ‘Can the UK afford to pay Pensions?

The growing national debt and pension liabilities either to public sector pension schemes and the state pension were cited as reasons to seek solutions to the so called ‘demographic burden’ of an ageing baby boomer population.  The report suggested that these liabilities would be a considerable financial burden which future generations would have to pay off through their taxes.

In 2014, the Institute of Economic affairs also added its warning by claiming that future generations could be ‘short-changed’ and the public finances put in jeopardy unless the UK takes serious measures to reform the state pension system.  Clearly there is no shortage of organisations and politicians ready to pitch in to reinforce this message.  To that end, Sir John Cridland, former CBI Director General, is due to publish an interim report early this year aimed at ‘ensuring the state pension remains affordable’.

In response to these fears, changes to the pension retirement age are already in progress and, whilst it is currently set at 66, it has been suggested that the Department of Work and Pensions may have plans to increase it further to the age of 70.  Furthermore, the Chancellor Philip Hammond has hinted that after 2020 state pensions may no longer be ring-fenced from spending cuts.

Added to these messages of unaffordability there is also something far more insidious going on.  In Australia, a crossbench senator recently said that ‘taking the pension shouldn’t be something you aspire to, it should be something you try to avoid because it signifies you’re in a low-income group’.  He suggested that payments be viewed as welfare not an entitlement.  Right wing ideologies which promote the primacy of the individual over that of the well-being of a wider community have led to an emphasis on individual responsibility which has, in turn, led to the shaming of those who find themselves on the wrong end of the economic stick.  The inference is that if you’re poor, unemployed or sick then you only have yourself to blame.

The political discourse is making it clear now that pensioners are not only about to be added to this list but also perhaps even condemned for not having saved sufficiently to pay for a decent retirement.  Even the prospect of retiring is no longer sacrosanct.  The Tory peer, Baroness Altmann, tweeted last year that “private pension/health will drive retirement age” thus suggesting that unless you’ve got a big fat private pension or health insurance you can forget retiring on a state pension because it simply will not pay enough to cover your costs.  Clearly retirement is intended to become the privilege of the rich and well heeled.

Citizens face the prospect not only of a two-tier health and social care service but also a two-tier pension entitlement – one for those who can afford to save for one and one for those who can’t which may condemn people to working beyond retirement just to survive.

As Peter Fleming recently wrote in an article in the Guardian:

“We can trace the untimely demise of retirement to a number of assumptions about how society ought to be organised.  At no other time since its inception has the welfare state been so hated by the governing elite.  Social care.  Unemployment assistance.  Health.  Local councils and libraries.  Municipal parks.  Anything relating to what used to be called “the public good” is attacked at the roots.  Austerity redefines these things as fiscal liabilities or deficits rather than shared investments in common decency.  It was only a matter of time before pensions too were put on the chopping block”.

Of course, it might also be said that things are not looking favourable either for those who are paying into private pensions.  Not only have many defined benefit pension schemes been closed and replaced with pensions linked to the uncertainties of the stock and bond market but also in a new development the government has recently announced a consultation paper which could take thousands of pounds of income away from 11 million retirees.  This means basing annual increases on the consumer price index rather than the retail price index.  The paper also suggests that where a company is facing significant financial pressures it could suspend increases altogether.  In the heady days of market superiority private pensions might have been all the rage but in these cash strapped times and market uncertainty the gloss may be rubbing off.

Whilst clearly the mainstream and ideologically inspired experts view this demographic transition as a ticking time bomb of the financial kind, I want to investigate in this article how this view has arisen and show that, because we misunderstand how our money system actually works, the argument is far from an affordability issue.

Since the post war settlement which led to the creation of social welfare provision including a state pension and free healthcare and education citizens have been bound together by a social contract based on mutual support across the generations.  That social contract is now under threat.  Young people quite rightly compare their impoverished lives with those of their post war parents and grandparents.  Lack of adequate, affordable housing, debt ridden higher education, poorer employment opportunities, low pay and lack of job security not to mention the prospect of working longer and a poverty stricken old age are all a cause for anxiety among young people who fear for their future prosperity.

Quite predictably it stirs up resentment as they perceive the older generation having very nice, comfortable lives thank you with their own homes and decent pensions!  These are advantages that the young can scarcely dream of unless they are lucky enough to have a helping financial hand from parents or grandparents. The inference is that the social contract is no longer sustainable because in the future there will not be enough young people generating tax receipts and income to fund all those things which we have come to rely on to make society decent and civilised.

At the Conservative Conference last October the current Chancellor, Philip Hammond, warned of the dangers of piling up debt for our children and grandchildren promising he would restore fiscal discipline and get Britain back to living within its means.  Georgia Gould, a Labour Councillor in North London, has even suggested that we may have to reconsider the principle of universal pension benefits in the light of the supposed financial ‘black hole’ they represent.

What should be the right ‘balance’ of public spending between the generations to ensure a fair distribution of wealth and resources is the mainstream question and is there even a future for state paid pensions?

The message that our pensions along with our social security system is too costly and unsustainable is constantly drummed into the public consciousness.  Austerity, cutting public spending and privatisation have been presented by all the main parties (until recently) as necessary to get our public finances ‘under control’.  And yet, despite the growing evidence that cutting government expenditure on public and social infrastructure has had catastrophic consequences for the nation’s overall economic well-being – fiscal discipline and paying down debt is the re-occurring mantra of mainstream economists and politicians (even if the timescale for such plans has slipped somewhat in the face of an uncertain economy).

We need urgently to challenge these claims.

It might first be worthwhile spending some time on explaining from where this narrative arose.  The Keynsian inspired post war consensus started to break down in the 1970s with the two oil shocks and resultant rising inflation and unemployment.  This also coincided with the infiltration of neoliberal/monetarist ideas into the political mindset which was to have increasingly destructive consequences on economic policy for the next 40 years.

This decade saw the death knell for post war Keynsian policies and initiated a shift away from full employment.  Labour eventually paid a high price for its management of the economic crisis and lost the election to the Tories in 1979.  Margaret Thatcher brought to the table an economic vision inspired by Friedrich Hayek and Milton Friedman and her policies reflected her belief in the superiority of the market, less government involvement and the importance of the individual.  The idea implicit in this dogma was that the welfare state deprived people of the opportunity to make their own arrangements for pensions, health and housing.

As a result, the merits of home ownership were promoted and our stock of social housing sold off, along with the opening up of the market for private pensions in an attempt to weaken the state’s own pension provision, both of which continue today.  Treasury documents released last year revealed that Thatcher also supported a plan to dismantle the welfare state and introduce private health insurance to end the NHS.

By the time Labour finally returned to power, market driven ideology was firmly entrenched in the political narrative.  Under Tony Blair’s leadership the party, with its ‘third way’ credentials, rejected its socialist roots and fostered a laissez-faire capitalism of globalised markets and increasing corporate power.

Philip Bobbitt in his book ‘The Shield of Achilles’ published in 2002 suggested that power of the nation state would, over time, lose its authority to the ‘market state’.  The ‘nation state’ he said ‘derives its power through its promise to improve its citizen’s material wellbeing, while the market state is legitimised through its promise to maximise its citizens’ opportunities.’ To put it simply the centralised state has indeed been replaced by a market state orthodoxy which is fragmented and outsourced. In short, public money is being poured into the coffers of global companies to run public services for profit.  It is a place where, it would seem, the term ‘public purpose’ has its narrowest meaning.

Following the Global Financial Crash when Labour with some success flirted for a short period with Keynes, the Tories returned to power in 2010 to reinforce the corporate dominated, revolving door politics of the past decades.  And, on the basis of an incorrect accusation of Labour’s overspending, began their attack on public services, the NHS and social security peddling the cruel mantra of ‘we must live within our means’ in justification.

However, the increased poverty, inequality and insecurity can be attributed not to previous governments overspending or living beyond their financial means but rather a pernicious ideology which has put increasing the wealth of the few above the well-being of society and raised the status of the corporations to gods.

Politicians aided by a self-interested press, corporations and the wealthy have convinced the public that the state finances are like their own household budgets and that the national debt and deficit are dirty words.  We have to cut expenditure to get our public finances in order to prevent burdening future generations with debt and higher taxes is an oft repeated message in the media.

So, is it true that by borrowing now we are burdening future generations?  The short answer is NO and is indeed illogical.  We should be challenging such a distortion and indeed presenting the real facts about how our money system works in practice.

The economist, Professor Bill Mitchell rightly points out that past and current policy decisions do affect young people today and will also affect future, yet to be born, generations.  However, as we have seen this has been presented by politicians and think tanks in terms of financial affordability – whether there is enough money in the public pot to continue paying for social security, the NHS, public services and education both now and in the future.

Deficits and public debt have become society’s bogeyman which has proved a very useful myth to justify continued public sector cuts and privatisation thus serving the pursuit of a political ideology rather than any sort of economic reality.

We are regaled endlessly with the message that fiscal discipline is vital if we are to maintain a healthy ‘bank’ balance, save for a rainy day or avoid bankruptcy.  Of course, that would be true if the State’s finances ran like our own household budgets where our expenditure is limited by our income.  However, this may come as a shock to some but in a post gold standard world government spending is not constrained by the taxes we pay.

For an explanation, we must look at how a sovereign, currency issuing government like ours actually operates.  As Professor Bill Mitchell points out:

“The fact is that the current government has as much ‘money’ now as it had yesterday and the same amount, it will have tomorrow.  That is, it has whatever it wants to spend.  It always has that.  It has no more or less capacity to spend today because there were surpluses in the past than it would have if there have been deficits in the past.“

“Borrowing” doesn’t take any money at all from the pockets of future taxpayers and baby boomers (like myself) have never been asked to pay back a single penny of the public ‘debt’ accumulated by their parents’ generation.  Indeed, those fiscal deficits created public assets and infrastructure from which we have all benefited. Those terms debt and borrowing are loaded words which fit very nicely with our understanding of how our personal finances operate in practice in a Wilkins Micawber sort of way.  However, in terms of a sovereign state issuing its own currency it bears no relationship to our own household budgets.  The funds that pay for bonds or what is called ‘borrowing’ began life in government spending.  So, when economic experts and politicians refer to debt clocks claiming that we are sinking under its weight and we cannot afford to burden future generations we need to take a step back and look at it rationally.

If the government is the currency issuer then as Professor Mitchell points out, it is in fact, only ‘borrowing’ its own spending back.  So how on earth can we be said to be ‘borrowing’ from the future?

As Paul Segal, a senior lecturer in economics noted, the debt is ‘the money the government owes us, not money that we owe to anyone else. […..] What is called the ‘national debt’ is our own savings, looked at the from other side of the balance sheet”.  And how does it get there?  We put our savings into banks and pension funds which are then invested by those same banks and pension funds when they buy interest bearing government bonds, which include premium bonds by the way,from which investors and retirees then enjoy a return as income which is either saved or spent into the economy. In short, if you’re worried about the national debt then you should do the decent thing and stop enjoying the proceeds of your investment savings.

Furthermore, and fundamentally, as Bill Mitchell highlights ‘Every generation chooses its own tax rates. That is, the mix of public and private sector involvement in the economy is a political choice’  The key word here is choice.  Governments make policy choices related to the particular politico/economic ideology they espouse and for the last forty years and more that choice across the political spectrum has been neoliberal and market driven.

The result has been more about redistribution of wealth upwards than ‘trickle down’ and this has been at the expense of ordinary working people.  As the economist, Ellis Winningham recently noted: ‘The rich have been robbing us’.

Oxfam reported in January that runaway inequality has created a world where 62 people own as much as the poorest half of the world’s population.

The idea that government policy should serve public purpose aims as it did during the post war years for the economic well-being of a nation has largely been abandoned in favourof the rise of a deregulated corporate driven state whose hallmark has been excessive greed.

When those on opposition benches take the government of the day to task for rising debt and increasing deficits as if these were signs of poor economic management, the public are quite understandably horrified at government’s apparent wastefulness – how that suits the orthodox agenda!  The debt and deficit are, however, largely misunderstood by the public, and politicians either take advantage of that confusion to be better able to justify ideological austerity, cuts and privatisation or simply don’t understand that their own knowledge is flawed.

In short, deficits (i.e. the difference between what is received in taxation and actual government spending) are neither good nor bad in themselves – they are more of an economic indicator of whether a government is doing its job effectively or not.  Thus, the success or failure of an economy will depend on whether there is an appropriate level of government spending to ensure full and productive employment.  Historically, fiscal deficits have in fact been an enduring feature of post war economies and are, in the words of the economist Dr Steven Hail, ‘normal and necessary’.

Indeed in 1982 Gardner Ackley wrote:

“My own position on deficits has always been, and remains, that deficits, per se, are neither good nor bad.  There are times when they are not only appropriate but even highly desirable, and there are times when they are inappropriate and dangerous.  During a recession or a period of “stagflation”, deficits are nearly unavoidable, and are likely to be constructive rather than harmful.”

…It is not the government’s role to run deficits or surpluses. We want governments to make policy choices that will maximise the potential of the people to enjoy their lives and contribute the best they can, given their own circumstances to the well-being of society and the planet.

We might call this goal one of public purpose.  An essential element of that goal, given current cultural mores in most nations, will be to ensure that everyone who wants to work has a job and for those that are unable to work, for whatever reason, have adequate income support so they are not alienated and socially-excluded.

When Labour came to power after the second world war the aim of Clement Atlee’s government was to create a more stable, fair and less exploitative society than had been the case before the war.  Fiscal deficits were an enabling factor in achieving this.  Our parents and grandparents didn’t whisper in corners about government wasting money or talk about how governments should be fiscally sound they understood its role in making their lives better.  We have all benefited from that wisdom and foresight even if we have increasingly forgotten that, over the last few decades, as market and monetarist orthodoxy has replaced a public purpose vision which benefited citizens through access to publicly paid for health and education, decent housing, public services, social security (including pensions), redistribution of wealth and a focus on full employment.  We neither went bankrupt then creating a fairer society and nor can we do so today no matter what those that claim to know try to tell us.

The idea that we can no longer afford such a vision because we can’t afford it is one of the biggest inventions of our time and one that will continue to impoverish society if we let it.  So, in the same way as our parents and grandparents understood the importance of government’s role in investing in better lives for themselves and for their children we must embrace that same understanding and reject the paltry arguments of orthodox economists which has led to increasing poverty and inequality through a casualised labour market, wage suppression and attacks on trade unions all to support global trade, an emphasis on a largely unproductive finance sector and the politics of austerity.  There is an alternative to this miserable economic narrative which wants us to believe that governments are financially constrained and all it requires, is for us to challenge those who tell us there isn’t one.

Fundamentally a healthy economy is dependent on a healthy and educated population which is not driven by fear of want.  The social security system including state pensions, the NHS, public services and transport networks are all necessary to the good working of society and a nation cannot function properly without the vital infrastructure which underpins a strong economy.

So, if a sovereign state like ours which issues its own currency, is not constrained by taxation, cannot run out of money, go bankrupt or burden future generations, are there any real constraints to government spending?  There are certainly caveats which relate to resource availability whether that’s raw materials, goods, services or human labour.  Money is not finite but resources are whether they are human or otherwise.  To quote again Gardner Ackley:

“That goal is constrained by the availability of real resources that the nation commands – labour, capital, land, etc – but not by the financial capacity of the currency-issuing government.”

Whilst this generation cannot burden future generations with higher taxes or debt burden we have to recognise that there are limitations related to consumption of finite resources and that the resulting damage to the environment will diminish the prospects for our children’s children and beyond.  This is perhaps the most pressing problem of our times which we must reflect on urgently.  Therefore, the onus on this generation and its elected governments is to do two things: firstly to commit to investing in our young people over the long term to ensure that they can be employed in productive well paid jobs to serve the needs of future generations including the retired; and secondly but more importantly we have a responsibility to ensure that we actually have an environmentally sound planet to bequeath to our grandchildren and their children.

We should be clear that the current government has made an ideological choice instead to impoverish future generations by cutting spending and all for ideological reasons that have nothing to do with the well-being of society today or in the future.

References

http://www.ippr.org/publications/future-proof- britain-in- the-2020s

http://www.if.org.uk/wp-content/uploads/2013/02/Can- the-UK- Afford-to- Pay-

Pensions.pdf

https://iea.org.uk/publications/research/the-government- debt-iceberg

https://www.gov.uk/government/news/john-cridland- cbe-launches- consultation-on-

the-state- pension-age

http://www.bbc.co.uk/programmes/b086t0mb

https://www.theguardian.com/commentisfree/2015/oct/24/young-bear- burden-of-

pensioner-prosperity

http://www.abc.net.au/news/2017-01- 02/david-leyonhjelm- calls-to- restrict-pension-

assets-test/8157924

https://www.theguardian.com/commentisfree/2017/feb/14/wealthy-retire- austerity-

pensioners-work

http://www.telegraph.co.uk/news/2016/10/03/philip-hammond- budget-surplus-

conservative-conference- live/

http://www.newstatesman.com/politics/2017/02/goodbye-liberal- era

https://www.theguardian.com/education/2009/may/19/philip-bobbitt- kissinger-cuba

https://www.theguardian.com/commentisfree/2010/jun/17/fiscal-deficit- threat

http://bilbo.economicoutlook.net/blog/?p=28597

https://alittleecon.wordpress.com/2014/08/06/government-debt- is-not- a-burden- on-

future-generations/

http://bilbo.economicoutlook.net/blog/?p=3891

http://bilbo.economicoutlook.net/blog/?p=23673

Dialogue with an Anti-Corbyn Labour supporter

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(Published now, rather than when it was written because it lost relevance when…  given the convenient coincidence of Article 50 and two tricky by-elections…. a second coup looked all too likely.  This threat has fizzled out for the moment, although another attempt to unseat Jeremy Corbyn may well materialise if Labour loses in Stoke and/or Copeland.  Posting now was also prompted by John McDonnell’s warning  ‘This daily grinding out of distortion and attack can undoubtedly have its effect on our standing in the polls and in turn on the morale of some of our supporters, who are not always close to the action and may not be experienced in past trade union or political campaigns’.)

Dear Person,

We met the other day, and you told me that you had only joined the LP to vote against Jeremy Corbyn,

I asked you if you had actually seen any of Jeremy’s speeches or the debates in the leadership contest?

You did have the grace to look shamefaced as you shook your head… Then you countered:

“But, but I do read the ‘good’ newspapers, the leftwing papers like the Guardian and the i”

Rendered speechless at the idea that the Guardian or the i were leftwing, I stuttered:

“Did you really think Owen Smith was more electable… a man who makes penis jokes??”

But what I should have said was:

Reporting in the MSM is largely without reference to context or history… and typified by criticisms such as Corbyn’s lack of success in winning back Scottish votes. This is reductive to the point of misleading but not new. However, there have been a number of recent academic led studies which have looked at media bias and concluded that the coverage of previous Labour leaders were ‘nowhere near as destructive, as vicious and as antagonistic as is the case now with Corbyn’. One such study indicated that 75% of press coverage misrepresented him and expressed serious concern for its impact on the democratic process.

Furthermore, many of these stories have been fed to the media by hostile members of the LP elite who are rabidly anti-Corbyn, and acting against the expressed wishes of the overwhelming majority of the LP membership.

They justify their behaviour by arguing that Corbyn is unelectable and not a good leader. However, this is hardly convincing when it is clear that they will fight tooth and nail to make it impossible for another more (in their view) ‘plausible’ but similarly leftwing candidate to replace Corbyn. For example, they could agree to reduce the number of nominations required from the PLP to stand for the leadership, from the current 35 to 5.

But they won’t do that because, just like Hilary Clinton, they believe that ‘it’s their turn’ and that the LP can return to being two shades left of the Conservatives and it will suddenly be electable.

This is the complacency and out of touchness that led to Donald Trump being elected. And a fact, that Peter Mandelson acknowledged when he blamed three terms of New Labour for Brexit and a majority rejecting globalization.

But in any event, the undue focus on Corbyn also ignores the plight of neoliberal social democratic parties globally.  As Stephen Bush wrote in the New Statesman:

Across the continent, just two centre-left parties regularly outpoll Corbyn’s Labour: the Portuguese Socialists and the Italian Democrats, the latter of which averages 30 per cent on a good day. And of the two politicians held up as examples by Corbyn’s internal opponents – Matteo Renzi of Italy and Manuel Valls of France – one suffered a self-inflicted defeat in 2016 and the other looks likely to join him in 2017.

Labour’s Corbynsceptics have not yet accepted that the party’s problems do not start or end with the leader. They describe him as an insurmountable obstacle to victory in 2020, but the bigger problem for them is that he has also proved an insurmountable obstacle to their thinking about the party’s long-term future.

http://www.newstatesman.com/2017/01/jeremy-corbyns-internal-critics-have-compelling-diagnosis-they-dont-have-cure

 

It’s not that I have an uncritical relationship with the current Labour leadership but I’m not going to jettison Corbyn and co with all their really good points and policies when there is no comparable candidate who would get the nominations required.   Furthermore, I have no doubt that JC is staying on for the same reason. I don’t know how on earth he stands the constant twisting of facts, delegitimisation and misrepresentation.

Then you would have replied:

172 MPs passed a vote of no confidence in Corbyn!

And I would have suggested that you read this review of Gaye Johnson’s book with its introduction by the late Michael Meacher:

A systematic analysis of the biggest internal coup d’etat in the history of the Labour Party. It contains a wealth of hitherto unreported material of how this was achieved. The Blairite machine gathered and fostered its own panel of ultra-reliable potential candidates (often special advisers of existing MPs) and helped to train and prepare them for the day when winnable seats might become available, exactly as the Blairite ‘Progress’ faction continues to do within the party to this very day.

And the legacy of this takeover remains. The leader may be Jeremy Corbyn, but the MPs, party officials, leaders in local government and many more remain the excrescence of a bygone era. Party employees especially have a long history of right-wing bias and working against left-wing candidates. A former Party Director of Communications openly boasted in 1998 of how he had worked to label the Grassroots Alliance slate for the NEC as “hard left”. Party staff are known to grade Conference delegates according to their loyalty to the leadership and harass delegates about how to vote. Staff themselves were pressured to behave in a certain way by the increased use of short-term contracts.

Many of the powers of the NEC were delegated to hand-picked subcommittees in the New Labour era. Labyrinthine policy filtering mechanisms were introduced, undermining the sovereignty of Party Conference.

http://www.organizedrage.com/2016/12/book-review-new-labour-was-gain-worth.html

 

Then I could have said:

The pivotal moment was the PLP coup when the rebel MPs revealed their true colours, either politically or indeed in moral cowardice.  It was much more important for the prime movers to remove the leftwing leadership than it was to hold Cameron and Osborne to account for their gross irresponsibility and hubris.  It said it all.

At that point, many in the LP membership realised that these rebels MPs were not on the same side as themselves and that being elected on another neoliberal, New Labour platform was worse than useless.

Blair, Brown, Mandelson and the rest, were able to do things that the Tories would not have been able to do and we let them because they did increase funding public services  but in reality it was not enough… and the door was left wide open for the Tories to walk through in 2010 and defund, sell-off and privatise.

As for Jeremy Corbyn’s electability, a friend wrote to me:

Most people want a more equitable distribution of income and sourcing of tax, adequate funding of the NHS, increased public sector funding and management of social care, and investment in services and job creation, support for the integration of migrants and prevention of their exploitation, and that a Labour Government would deliver them. None of these measures is ideological, and the people supporting them within the party or in the population are not ideologues. They are ordinary people, and they rather like Jeremy Corbyn because so is he.

I agree.  And thank you to the Person who I met the other day, who told me that they had only joined the LP to vote against Jeremy Corbyn.  You showed me how unerring George Orwell and Chomsky were in recognising that the propaganda of the elite is contained in the quality press, aimed squarely at the educated middle classes.  Needless to say I think there are a lot of people out there who need to take their blinkers off.

https://www.lse.ac.uk/media@lse/research/pdf/JeremyCorbyn/Cobyn-Report-FINAL.pdf