Can we please drop the nonsense of ‘tax payer’s money’?

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Can we please drop the nonsense of ‘tax payer’s money’?  The phrase is just political advertising, intended to manipulate us in to accepting cuts and constraints which are not good for us or the economy.   (Christopher Bacon explains why it’s a nonsense in his article ‘The Myth of Tax Payer’s money’ which is copied below.)

However, like all successful advertising slogans, the phrase ‘tax-payer’s money’ invokes what psychologists call a schema…. a whole body of emotions, experiences and knowledge which mediate our response.

Hence, ‘Tax payer’s money’ is intended to create a direct link between government spending and the individual.  You are invited to visualise your hard-earned pennies being frittered away unwisely ……. which is hugely convenient for a politician intent on running down public services, so that they can be privatised.  Also implicit in the schema is the threat that if the government spends more, you’ll have to pay out, depleting even more of your income.

And like so much of neoliberal-speak, it is contaminated by deliberately confusing government spending with household spending.  The phrase ‘tax-payer’s money’ comes from the same stable as ‘maxing out the credit card’ or ‘mending the roof when the sun is shining’. It is bunkum.  Government is not like a household.

And of course, you know that really, when you actually think about it …. Government spending is nothing like our own.  But as Drew Weston wrote in ‘The Political Brain:  The Role of Emotion in Deciding the Fate of the Nation’, …..‘the nature of political campaigns are where “rational minds collide with irrational thinking”

Drawing from the fields of psychology and cognitive neuroscience, Weston, a clinical psychologist and political strategist, demonstrated the extent to which candidates’ speeches and political ads, are emotionally laden with words and images designed to provoke strong feelings…. And by re-writing the actual speeches using alternative wording, he was able to illicit a very different set of responses.

Weston explains that these messages activate networks in the brain and become the avenues down which true or false political messages travel, connecting to the unconscious emotions of the voter in a nano-second and involuntarily triggering us to react emotionally and without ‘thinking’.

So let’s keep ‘thinking’ and not allow the Right to infect our minds with their manipulative false analogies….  and can we please drop the nonsense of ‘tax payer’s money’.

 

The Myth of tax payer money Christopher Bacon

We are told, time and time again, that the government should spend taxpayer money wisely, efficiently, and sustainably.  Often these pronouncements are followed by promises to use taxpayer money well by cutting government spending and making efficiency improvements.  There is an assumption behind these statements that is utterly inaccurate and dishonest, however.  Namely, that there is such a thing as “taxpayer money.”

Not only is there no such thing as taxpayer money, it is not the case – ipso facto – that the government spends taxpayer money.  To see how this is so, assume that taxpayer money exists and assume that the government spends it.  As we shall see, these assumptions actually lead to a paradox.

In this world, where the government spends taxpayer money, the following situation holds. The government invokes a tax on the population – say, an income tax.  This income tax takes money from the people who qualify and adds it to the Treasury account.  The Treasury, then, takes that money and spends it on whatever the government wants to buy: a new hospital, school, submarine, or whatever.

Where does this money come from, assuming God does not randomly drop it from the sky?  Well, it is “taxpayer” money.  So the money, presumably, belongs to the taxpayers – so it must come from them (i.e. the taxpayers must issue/print it).  Well, that is all well and good, but it does not represent this world.  Taxpayers, in the UK, do not print pound sterling. That would, of course, be a criminal offense.

In order to tax someone, there must be something there to tax.  Since taxpayers do not print their own money, there is nothing there to tax.  And in order for the government to spend, the government must first tax.  But since there is nothing there to tax, the government will never collect tax and so will never spend.

Clearly, this description is not one of our world.  In this world, the government does spend, and taxpayers do pay their taxes.  Something has to give – our initial assumptions must be wrong:  there is no such thing as taxpayer money and/or governments do not require taxes to spend.

If we jettison the second assumption, then it turns out that the government must spend before it collects taxes.  This is because if it does not spend, then there will be nothing to collect – remember, taxpayers do not print their own money and it does not magically fall from the sky.  Spending precedes taxation, by necessity.  Now that we can see the money in circulation is government money – money issued by the government – it follows that taxpayers do not own it; so the first assumption is jettisoned.  Therefore, the notion “taxpayer money” ceases to have any content.

Brighton Fringe – #MMT with the one and only Prof. Bill Mitchell #Lab17

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Many of us now realise that the scares about deficits and debt are nothing more than useful devices to justify cuts and sell-offs of our public services.  Austerity is a political choice.  There was/is nothing necessary about the last 7y of Tory asset-stripping.  If you’re in Brighton for LP conference (or any other reason) come and hear Professor Bill Mitchell explain how the economy really operates.  You don’t need to be a LP member and it doesn’t cost you anything to be informed by a world class economist.

Monday 25th September, 2pm until 5pm at the Brighthelm Centre (just a few steps down from Brighton station).

#Grenfell – Negligence beyond Belief

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The shock and grief, the outpouring of emotions from anger, sadness and depair is what we are all experiencing. The full scale of this appalling tragedy at the #Grenfell fire leaves us numb. Those responsible are trying to shift opinion in order to avoid blame. Some criticise people by saying they are politicisng this tragic event. But the cause of this event was indeed political – austerity. For that reason it is inherently politicised. It was only this week when Theresa May admitted that austerity was unnecessary, avoidable, a political choice. In that, they are culpable and their actions inexcusable. They will not avoid blame; justice will be done.

There needs to be a full inquest regarding these deaths, not merely an enquiry, where in years to come evidence goes missing or locked away for 80 years

Ten shocking facts about #Grenfell

From leftfutures.org

Britain was shocked yesterday at the sight of Grenfell Tower, a block of flats that housed as many as 600 people in West London, engulfed by flames in the early hours of Wednesday morning. Since the fire, a number of shocking facts have become apparent, and Theresa May has called for a public enquiry:

  1. * Tower lies in the wealthiest locality in the country, the Royal Borough of Kensington and Chelsea. The average income is over £100,000 and the average property is sold for close to £2,000,000. David Cameron and Roman Abramovich both own a house there. The residents of Grenfell Tower are mainly working-class and ethnic minority, living in the cheapest accommodation in the borough, provided through the borough’s council, which pays KCTMO public money to manage the building. Senior managers at KCTMO earned £650,000 between them last year.
  2. *The residents formed an association, the Grenfell Action Group “to record our struggle and… remain as evidence for future generations of how our community has been mistreated by RBKC [the borough’s council] and its social housing management agents the Kensington & Chelsea TMO (KCTMO).” The Group raised serious concerns about fire risk following near catastrophes at other KCTMO properties but were ignored, causing them to write “[we] firmly believe that only a catastrophic event will expose the ineptitude and incompetence of our landlord, the KCTMO, and bring an end to the dangerous living conditions and neglect of health and safety legislation that they inflict upon their tenants and leaseholders.” 90% of residents signed a petition for an investigation into KCTMO’s handling of safety concerns.
  3. *The residents sought legal support to force KCTMO to improve safety in Grenfell Tower, but could not afford it due to cuts in legal aid. In 2009, under Labour, England and Wales had the highest per capita spending on legal aid in the world, before Conservative austerity measures cut it.
  4. *£10m was spent refurbishing Grenfell Tower from 2014-16, without addressing residents’ safety concerns or installing sprinklers. Instead, cladding was added to make the building look more attractive from the outside (presumably, to richer people who lived elsewhere in Kensington). Residents were told that the building was designed in such a way that a fire in one flat would not spread to others, and therefore advised to stay in their homes in case of a fire. This proved not to be the case,possibly because the cladding was flammable.
  5. *In 2009, a coroner’s report into another fatal tower block fire in London recommended that the government ensure sprinklers are installed during refurbishments. In 2014, given the lack of response from government, Labour MP and former firefighter Jim Fitzpatrick, pressed this in a parliamentary debate. Conservative minister Brandon Lewis said: “Sprinklers work. We know that. No one can deny it… They are an effective way of protecting lives and property.” But he rejected the idea that the government should enforce the fitting of sprinklers, citing the need to reduce the burden of regulation. Gavin Barwell, his successor as Housing Minister, and now Theresa May’s Chief of Staff, pledged a review of building regulations in this area, but never carried it out.
  6. *312 Conservative MPs voted against a Labour bill last year which required landlords to make homes “fit for human habitation”. 72 of those are themselves private landlords.
  7. *Ten fire stations and 500 firefighters’ jobs have been cut since 2009. Boris Johnson, then Mayor of London and now Foreign Secretary, told an assembly member objecting to these cuts to “get stuffed”. The new mayor, Labour’s Sadiq Khan, will review the cuts.
  8. *Thousands of ordinary people have donated money, supplies and time to help the victims of the fire, including many Islamic groups. According to witnesses and survivors, the Muslims who were awake for Ramadan prayers, having fasted all day, were crucial to raising the alarm and helping neighbours from the building.
  9. *As of Thursday, after decades of Conservative rule, Kensington is represented by a Labour MP (Emma Dent Coad) who has a strong record of campaigning against gentrification, for housing rights and writes a blogendorsed by the Grenfell Action Group.
  10. *Theresa May visited Grenfell today, but refused to speak to a single resident.
    To sum up: in the richest borough in the country, poor people died in their homes, despite repeatedly warning the authorities of safety concerns and possibly as a direct result of actions taken by KCTMO. The government knew what should be done to avert such tragedies and did nothing. Cuts stopped the tragedy from being prevented through legal action or mitigated by the fire service. Those responsible remain in power. But the people are fighting back.

 

Austerity was political ; Cruelty therefore deliberate #ToriesOUT

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So Theresa May now admitting that Austerity was a political choice and cruelty deliberately inflicted on the people. #ToriesOUT They must pay.

Because of Jeremy Corbyn’s honesty and courage, people have seen the truth – Austerity was a myth. I, Daniel Blake portrayed the injustice. 

Theresa May has admitted this was unnecessary, is saying austerity is over and therefore this has been deliberately inflicted. The Tories must now accept the consequences, and step down from government.

All of the deaths, the deprivation, all of the poverty – all were deliberately inflicted.