What do unions think of Labour’s manifesto?

Quote

http://www.union-news.co.uk/breaking-unions-welcome-labours-manifesto/

Unions have welcomed Labour’s election manifesto, praising it as “impressive”, a “chance for real change” and “a real opportunity to build a better Britain”.

ASLEF general secretary Mick Whelan said: “This is an exciting and progressive platform on which Labour can fight the next election. It offers people a real opportunity to help build a better Britain.

“Jeremy understands how ordinary hardworking men and women are suffering in the Conservative Age of Austerity. David Cameron, George Osborne, Theresa May and Philip Hammond have pulled off the trick of redistributing wealth from the poor to the rich – the reverse of Robin Hood! – to bail out the fat cats and bankers who caused the economic crisis of 2008.

“In contrast Jeremy wants to rebuild Britain to create a fairer, more modern society, with a more productive economy, that delivers for all the people, not just the few, and is fit for the 21st century.

“We especially welcome the promise to bring Britain’s railways back into public ownership – a policy on which ASLEF has campaigned passionately ever since John Major’s ill-starred privatisation of British Rail in 1994 – and freeze passenger fares across the network.

“This is an exciting, and sensible, socialist platform on which any of the great Labour Party leaders of the past – Keir Hardie, Clement Attlee, and Harold Wilson – would have been happy to stand. That’s why I urge people to vote Labour on 8 June and help return a Labour government to build a better Britain.”

PCS general secretary Mark Serwotka said: “Labour’s pledges to end the public sector pay cap, improve collective bargaining, repeal anti-trade union legislation and strengthen employment rights stand in stark contrast to the Conservatives’ bogus claims on workers’ rights.

“Labour’s manifesto sets out a clear commitment to many long-standing PCS industrial issues and demands, including an end to the privatisation of public services, renationalisation of public utilities and raising the pay of civil and public service workers.

“Tax reforms we have long campaigned for – including the ‘Robin Hood tax’ – offer the opportunity to ensure that those with the greatest wealth contribute more. Coupled with much-needed investment in HMRC to go after those who evade and avoid tax, these reforms will provide essential and much-needed investment in our public services.

“Plans to reform social security, including scrapping the hated Bedroom Tax, ending benefit sanctions and reinstating housing benefit for those under 21, are most welcome and signal a shift away from the policy of demonising claimants doggedly pursued by the Tories.

“Jeremy Corbyn and John McDonnell have always shown great support for PCS campaigns and our members, and their pledges are in stark contrast to what the Tories have to offer. We have been clear that our message to our members is that another Tory government would be the worst possible outcome.”

TSSA general secretary Manuel Cortes said: “This is an exciting, ambitious vision for a big-hearted, inclusive Britain that will build better lives for the many not the few. What’s not to like? Of course, as the head of transport union which has long campaigned to see rail brought back into public ownership I am delighted on behalf of TSSA members to welcome Labour’s commitment to taking back control of rail from corporate franchise holders who for too long have been able to get away with extracting profit out of our rail system without having to plough back into it in investment.

“Great news that the construction of HS2 is to be extended into Scotland as is that HS3 and Crossrail 2 will also be built. Good quality rail links are at the heart of a modern economy and today we have been not just been given the plan but the commitment to bringing every area of Britain onto 21st century track.

“This manifesto will transform Britain’s rail industry and help underpin the expansion of a high speed, high-tech economy. Our members too will be delighted at the commitment to a £10 living wage which will lift so many of their fellow workers and family members off the bread line. The commitment to house building, an industrial strategy, NHS and public services shows Labour is putting people back at the heart of British economy, committing to giving the many a wage rise. This manifesto show working people are definitely better off with Labour. Bring on June 8.”

FBU general secretary Matt Wrack said: “There are clear dividing lines for who to vote for in this election. Labour will invest in firefighters in order to keep people safe, whereas the Tories will continue to cut and decimate our service, putting public safety at risk.

“Having 3,000 more firefighters on the frontline is a promising start, and we welcome their commitment to review staffing levels across the service as a whole.

“Fire deaths have risen for the first time in 20 years since the Tories came to power, and response times to emergencies are getting slower. The service is in crisis and the Tories don’t have a plan to save it. Labour are the safe pair of hands who will deliver a properly resourced fire service to protect public safety.”

Unite general secretary Len McCluskey said: “What Labour is doing today is what Labour does best – offering real change for the many in this country. Labour will invest in our people and build a Britain that we can all be proud of.

“For those who want to see our children given a chance, to see that work really pays, that our elderly and vulnerable are no longer degraded by government policy, then the answer is to vote Labour.

“For too long, working people have been at the sharp end of Conservative cuts and disastrous economic mismanagement – and they will be again if that party takes power on 8 June. The reality of Conservative rule is that for those not protected by power and wealth, life gets tougher.

“In every aspect of life – from an affordable home to a safe NHS, from a decent education for all our kids to a living wage and a decent job – the story of the Tory party is that our communities suffer. The Labour party will put a halt to this. Under Labour, working people and their communities will stand tall again.”

UNISON general secretary Dave Prentis said: “Labour has produced a manifesto that delivers for public services. Ending the pay cap will make a huge difference for hard-pressed public sector employees. Proper investment in the NHS and social care will have a huge impact on patients and staff too.

“When the other parties unveil their manifestos later this week, they would do well to take a leaf out of Labour’s book – and stand up for public services and those who work in them.”

GMB general secretary Tim Roache said: “Labour’s manifesto is one that would practically change millions of lives. From social care, to housing, to Sure Start and our NHS – it’s a manifesto that makes sense for working people.

“It’s a manifesto about fairness and about helping real people to get by and get on in life. It’s not paying lip service to the issues people face, it’s taking them head on. The country is crying out for change. This is a manifesto that can deliver it. People need to get out there and vote for it.”

Usdaw general secretary John Hannett said: “Universal Credit will plunge far more working families into poverty, which will be almost impossible to work their way out of. We supported the initial intentions of Universal Credit, to simplify benefits and improve incentives to work.  However, severe cost cutting has turned Universal Credit into a real threat to the incomes of low-paid working families,

“Although we won the argument on the proposed massive cuts to tax credits, forcing a u-turn from the Government; those cuts are still being applied to Universal Credit and will hit millions of working families over the next 3 years. This is a ticking time bomb that will leave many working families thousands of pounds worse-off when they are transferred onto Universal Credit.

“We are looking to a Labour Government to restore the original purpose of Universal Credit, to encourage entry to and progression in work. The low work allowance and high clawback of net earnings are particular disincentives to work. There needs to be a fresh look at what Universal Credit means in practice for low and middle income earners and get this troubled project back on track to support not penalise working families.

“Whilst the Prime Minister has talked about supporting families struggling to make ends meet, only Labour has the policies to provide crucial support to help make working family incomes meet the cost of living.”

TUC general secretary Frances O’Grady said: “This is an impressive set of pledges from the Labour Party. Their commitments to improve workers’ rights and drive up wages would make a real difference to millions of workers.

“There’s clearly a growing political consensus to address issues affecting working people. Decent jobs and fair pay must top of the list for the new government.

“Nobody voted for Brexit to lose their hard-won protections at work. That is why Labour is right to protect existing rights at work, and pledge to at least match future EU rights. British workers shouldn’t miss out on rights enjoyed by other European workers.

“With one in ten workers now in insecure jobs, it’s good to see a real attempt to improve workplace rights. Banning zero-hours contracts would give nearly a million workers the certainty and security they deserve. And abolishing employment tribunal fees would make it easier for people to defend their rights at work.

“Labour rightly recognises that Britain still needs a pay rise. Wages still haven’t recovered from the financial crash, and far too many working people struggle to pay the bills.

“Increasing the minimum wage, and expanding collective bargaining coverage, are proven and effective ways to drive up stagnating pay.

“And ending artificial pay restrictions in the public sector will stop the real pay cuts for public servants after seven long years. Hard-working nurses shouldn’t be forced to turn to food banks.”

RMT general secretary Mick Cash said: “Labour’s commitment to British state ownership of our rail,  power and water, ‎as opposed to the foreign state-backed exploitation of our essential services supported by the Tories, shows that Jeremy Corbyn’s Labour is clearly fighting to protect our national interests.

“Labour’s manifesto recognises the dangers of Driver Only Operation and commits to safe and accessible railways for all.  The manifesto represents a massive boost for public transport after more than two decades of Tory privatisation and RMT welcomes this departure from the failed, profiteering model that has dragged Britain into the slow lane.”

Why the ‘Magic Money Tree’ Matters

Quote

 On BBC Question Time, the Prime Minsiter, Theresa May told a young nurse who hasn’t had a pay rise in eight years and is trying to earn a living that there was no more money, and that there isn’t a magic money tree. (See link)

The Tories know full well, that funds are available for the UK government to use as they think fit,  as we are a sovereign state, and have our own currency which the government releases for investment. But while in 2010 they made a public  fuss about a piece of paper which was saying ‘no money left’, they knew, all along’ what they wanted to do. They used this (ill-advised) joke to add credence to their Austerity agenda which has resulted in cuts so severe it has left people disabled suicidal, people homeless, and people who are working very hard, in poverty. Yet they  wanted those funds for the few, not for the many.

Since Margaret Thatcher’s cruel government snatched our children’s milk, and did not replenish our social housing, and decimated our industry,  and yet helped itself to public assets, the media has reinforced myths about mainstream economics. It continues in 21st Century, while  today’s Tories want to finish the job by, for example, cutting Police and Army personnel, and now they want to privatise our National  Health Service.

We cannot progress in redressing this imbalance  between rich and poor until these myths are exposed for what they are – just lies!

These are myths the Tories want us to believe ( see article) They are untrue, all of them

  • The state money system operates like our own household budget
  • Government spending relies on taxation and borrowing
  • The government needs to reduce the deficit, balance the books and save for the future
  • The government must learn to live within its means
  • The government has to cut public services like the NHS, education or welfare because we can no longer afford to pay for them   

The government is forever saying it’s the ‘taxpayers’ money which funds public services, and this just is not true. The government is the source of the money, and tax a tool for resdistributing  the wealth produced by our working people.   Once we accept this concept, then  we can see that Jeremy Corbyn’s Labour Party Manifesto is not a “Chritsmas Card List”, but a costed plan to invest in our society to rebuild Britain for the many, not the few. This is something which the vast majority want to see, but are still believing the Tory myths.

The Modern Money Matters website is a good source of information 

The Magic Money Tree Exists, Modern Money Matters

“Like the elephant in the room The Tree cannot be mentioned, because then the electorate might start asking awkward questions about public services — perhaps we should have some? — and taxation — are we overtaxed for the size of government we have, given that we still have people without work?

Once you know about The Tree you might have your politicians delay a casino build and build a hospital instead. You might let the rich people keep their coins, but stop them using those coins to reserve scarce doctors and teachers for their own purposes ahead of the general population.

The Tories want to privatise everything, and Labour want to hit rich people hard with taxation sticks. There are no doubt reasons for these fetishes that psychologists would find fascinating. But they are damaging to our nation. They get in the way of doing the job.”

In 1945, a Labour Government, after the ravages of war managed to invest in our society, and the will was there to do so. I believe the will is there now, but generations who have grown up believing what the Tory press have said,  do not realise this is all possible. Here is the Magic Money Tree idea of Labour’s Manifesto. Further economic explanations can be found as Modern Monetary Theory. (These are both known as MMT).

IMG_0939

Let’s dispel the Tory myth, and get the MMT idea of Economics out there. Then we start the rebuild. Our society has become so divided, we need to join together in creating a society for the Many not the Few.

 

 

 

EVERYTHING YOU EVER WANTED TO KNOW ABOUT HOW OUR MONEY SYSTEM WORKS BUT WERE AFRAID TO ASK

Quote

EVERYTHING YOU EVER WANTED TO KNOW ABOUT HOW OUR MONEY SYSTEM WORKS BUT WERE AFRAID TO ASK

by Prue Plumridge

At a time of great political and economic uncertainty you may be scratching your head and asking what on earth has this article to do with you as you’ve enough trouble just keeping your job and your finances in order let alone worrying about getting the government deficit down and paying the national debt back! What a temptation it is to shake our heads and defer to the experts who, we believe, must know better. The subject of economics might seem a little tricky but the basic concepts are simpler to understand than you might think at first glance and, rather than being a dull and arcane subject, it has everything to do with your life and your well-being.

So let’s start with a short economics quiz. No cheating now just answer the following questions with a yes or no without peaking further down for the solutions.

  • The state money system operates like our own household budgets
  • Government spending relies on taxation and borrowing
  • The government needs to reduce the deficit, balance the books and save for the future
  • The government must learn to live within its means
  • The government has to cut public services like the NHS, education or welfare because we can no longer afford to pay for them

If you answered YES to all of those questions you might be surprised to learn that you have fallen into the mainstream trap. This is what mainstream economists and politicians want YOU to believe. But what if everything you ever thought you knew about how the money system works wasn’t actually true but was being used to justify an ideology which includes austerity and cutting the public services we all rely on?

Well that’s exactly the case! YOU have been deceived.

WHAT YOU NEED TO KNOW:

  • The UK government issues the currency out of thin air via keystrokes on a computer – yes really! Banks create money out of thin air too when a customer takes out a loan but that debt must be repaid with interest.

 

 

  • The UK government is not like a household or a business where its finances are concerned
  • When the UK government spends it creates money by crediting the reserves of commercial banks held at the central bank – the Bank of England. A monetarily sovereign government like the UK can never run out of money and can always meet its liabilities as long as they are designated in the local currency, in this case our British pounds
  • The government as the currency issuer spends money into existence and doesn’t need to tax or borrow on the markets to fund its expenditure. Think about it:
    • What sense would it make for the government to borrow money it had issued in the first place?
    • How can the government spend tax before it has received it? Your tax obligations can only be paid once the government has issued the money and it is deducted at source by the taxman from your salary. (And just to shock you a little bit more do you know what happens to your tax? It gets extinguished from existence.

So, tax is not funding government expenditure. We have just been conditioned to believe it does.

  • Tax does, however, have a number of specific functions which include:
    • Ensuring that the economy does not exceed its productive capacity and lead to inflation – taxing more if the economy starts to overheat and taxing less if it is slowing down.
    • Enabling wealth to be distributed more equitably. So, yes, the rich SHOULD pay the tax they owe but not because it is funding healthcare, education or public services. It does not.
  • If our expenditure exceeds our income we will be in debt and it may cause us financial concern. However, a government deficit is far from being the bogeyman it is presented as by experts and politicians. (Just to be clear a government deficit is difference between tax received and the amount government spends and the national debt is the accumulation of those deficits). Deficits are, in fact, normal and necessary. They represent YOUR income. The politicians won’t tell you this (perhaps they don’t know) but in historical terms governments have run fiscal deficits for most of the time and have hardly ever run balanced budgets. Indeed, when it has happened they have occurred just before economic downturns. Think about that. What conclusions might you draw?
  • Budget surpluses are not the equivalent of saving to fund future government expenditure no matter what the politicians tell you. As the currency user you can save for that holiday you’ve always wanted but this does not apply to a sovereign government which is the currency issuer, cannot run out of money and can spend when it chooses. When a government chooses to pursue a public surplus what it actually means is removing wealth from the non-government sector -in other words you and me, the currency users. When that happens poverty and private debt increases instead. And that is exactly what has happened.
  • When you borrow money from the bank you have to repay the debt with interest. If you don’t the debt collector will be round pretty sharpish. This does not apply to a monetary sovereign government which cannot go bankrupt so the debt collectors won’t be knocking on the door of the treasury ready to haul off its assets any time soon.
  • Government funds public services like the NHS through creating money not by borrowing or taxing to pay for it.

But won’t ‘printing’ money create inflation I hear you gasp. After all you’ve heard about all about hyperinflation in Germany and Zimbabwe and politicians keep telling us all about the evils of ‘printing’ money and hyperinflation. As with everything there are caveats – nobody is suggesting for a moment that a government could carry on spending ad infinitum. Money may be infinite but resources are not.

The UK government may not be constrained financially but it is limited by availability of real resources – people, skills, technology, equipment, infrastructure, natural resources and ecological constraints. It is NEVER constrained by money.

We often hear journalists and politicians talk about a government’s financial credibility suggesting that an increase in the debt or deficit is an indicator that a government cannot be trusted to manage the economy effectively. However, this is the wrong measure of effectiveness. We should judge a government on the economic choices it made and whether it advanced public purpose. Did it create the necessary infrastructure to sustain a healthy economy? Did it invest in the health of the nation, in education, transport, food and farming security, renewable energy infrastructure or research and development? Did it ensure that citizens were protected in the event of illness, unemployment and disability or provide good pensions? Did it pursue full employment policies? Did it spend enough during economic downturns and offer a job guarantee for all those who wanted to work? And lastly did it use the available resources in the most effective way possible for the benefit of all?

If the answer to any of these questions is no then a government has failed to deliver in its primary purpose as a servant of the people. “The Government is us”.

Remember, a good government is one which:

  • deficit spends enough in relation to the prevailing economic conditions.
  • makes choices aimed at ensuring the well-being of the many and not just the few using the available resources as effectively and equitably as possible.

So, when people ask you as they invariably will ‘‘can we afford it’ the answer is yes.  The government creates the money and when it spends it benefits the private, non-government sector. In economic parlance, a government deficit equals a private sector surplus.

In short, spending equals income to someone – you, me, public service employees, pensioners, sick and disabled people receiving benefits all of whom will spend that money in the local or national economy not to mention businesses who will invest if they are confident in the government’s handling of the economy.

While we focus on the question of whether we can afford it in money terms we are ignoring the more important question of what the consequences are for the health and economic well-being of the nation if governments don’t spend adequately.  Austerity and cuts to public services have been presented as a financial necessity (however erroneous that argument is) and yet at the same time this government has had no problem at all with magicking up money from thin air to purchase weapons, fight wars, repair the Royal Estate, hand out tax breaks to the already wealthy or give public money to private corporations to run public services. It turns out the government is a real handy cash cow for the corporate sector.

Economic well-being depends not on money but governments making good choices which benefit us all and, given the record of the Conservatives over the last seven years, this is the question that should be on our lips not can we afford it.

 

Credits to:

https://era-blog.com/2016/12/05/paying-for-public-services-in-a-monetary-sovereign-state/

https://www.thepileus.com/economics/jeremy-corbyn-does-not-need-to-borrow-to-pay-for-his-policies/

https://www.thepileus.com/economics/labours-economic-alternative-to-neoliberalism/

http://bilbo.economicoutlook.net/blog/?p=25961

https://www.theguardian.com/commentisfree/video/2015/feb/04/another-economic-crash-is-coming-how-did-this-happen-video

https://www.theguardian.com/money/2017/apr/08/consumer-debt-loans-credit-cards-bank-of-england

 

 

 

 

 

 

That’s why it’s called a ‘struggle!’

Quote

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.