Dear Philip Hammond, Chancellor of the Exchequer

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A letter to the Chancellor of the Exchequer from Prue Plumridge

I feel I must write to you in response to your speech at the Conservative Conference in which you referred to the medium-term challenge of dealing with the public finances so as not to burden future generations.

Aside from the fact that your government has been promising to deal with the public finances for the past seven years whilst regularly moving the goal posts for achieving it, failed Tory promises show astonishing ignorance about how the state finances work in practice.

Or, is it, perhaps, that you do know but prefer to keep the public in the dark with fake messages about household budgets, living within our financial means, paying down our debts and saving for a rainy day.

You (and George Osborne before you) have abused the trust of the public with your myths and lies about maxing out the credit card and going broke.  Neither of which can happen in a sovereign currency issuing state.  I’m sure you know that really.  In truth, this has suited the pernicious ideology of the Tory government which claimed that Labour overspent and austerity was unavoidable.  Neither was true.  But, as a result, seven years of cuts to public spending have led to rising poverty and inequality through the redrawing of welfare provision and the decimation of public services not to mention the on-going attacks on employment rights and the rise of insecure working and the gig economy.

And, all the time, while you tell us that there is no money for those services upon which we all depend from the NHS, to public infrastructure and services and local government we are witnessing the ongoing transfer of wealth into ever fewer hands and public money being poured into corporate pockets.

Admit it, Chancellor, this exercise has never been about necessity.  It has always been about ideology which can be best expressed in the words of the former head of John Lewis who said recently ‘the only way to provide good public services is to ensure a vibrant business economy’ …… which is not only neoliberal bunkum trading on the lie of discredited ‘trickle down’ but shows how this false narrative dominates the mainstream and infects public understanding.  To quote Richard Murphy from Tax Research on the NHS  (and whilst he doesn’t mention it, public services too)

there is no reason why we should not have health care in thirty years’ time, whatever that care might be…… All we have to do is decide we want it. Then we can pay for it. It will not be a matter of not affording it. It’s just a matter of setting priorities. “

Moving on to your claim that borrowing takes money from the pockets of future tax payers is plain wrong to put it bluntly.

As the economist Professor Bill Mitchell notes “Each generation chooses its own tax rates and that means that the mix of public and private sector involvement in the economy is a political choice”

In this case yours.  Government spending in the form of deficits (assuming of course a government that takes seriously its responsibility for the well-being of the nation) can work on behalf of citizens to create a healthy economy and a fairer distribution of wealth.  This not only helps today’s citizens but also creates investment in public education, public health and other infrastructure which benefits both current and future generations.  Or, of course, it can, as in the case of the Tories and already noted, represent wealth transfer to the already rich and public money leaching into private corporate pockets.  And just to be clear as I can hear you whispering but what about the printing presses, inflation and Zimbabwe I am not suggesting that deficits don’t matter – they do but not in the way you tell us they do.  The fact is that whilst governments are never revenue constrained spending will always be limited by available productive capacity and resources.  And that is what has to be managed.  It should never be about balanced budgets rather it should be about creating a balanced economy.

So, Chancellor, in conclusion, I will finish by saying that a time is coming when you will no longer be able to fool the public into believing your household budget version of the state finances which has claimed that we can’t afford public services, the NHS and the welfare safety net.  They will then understand that you made a choice to deny them the public infrastructure that ensures a healthy economy and the well-being of their families.  They will understand that you played with their lives and their survival.

It is to be hoped that in the near future you will indeed have plenty of time as a shadow minister in her majesty’s government to reflect on where the Tory party went wrong but then again you probably won’t.

Regards

Prue Plumridge

Jeremy Corbyn speaks against TTIP at Durham Miners Gala

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In an inspiring and comprehensive speech, Jeremy Corbyn spelt out the aspirations [sic] that the left should have for any future Labour government.. a race to the top, not Osborne’s welfare for the rich and cuts for the poorest and the young.  An end to homelessness, hunger, the selling-off of publicly owned assets, zero hours contracts, food banks – that every child matters (not just the first two), solidarity with the trade unions and above all else, an end to the callous and unnecessary ‘Austerity’.

Jeremy specifically emphasised the threat of the US-EU trade deal TTIP… NAFTA on Steroids. He called for TTIP’s rejection not only in terms of its well publicised threat to the NHS and public services but also because of the international threat that it poses to worker and environmental protection legislation across Europe, the UK and the US.

In this speech, Jeremy Corbyn demonstrates by example, just how far the current Labour Party has lost its way.  In a recent hustings speech, he was more overt:

“We’ve become cowed by powerful commercial interests, frightened of the press, frightened to stand up for what we absolutely believe in.  I want a more equal society, a fairer society, a world at peace not at war.  I want a LP at the heart of the community that is demanding those jobs, homes and hope for everyone, so that they can live in a society that is more equal.  We are moving in the wrong direction at the present time – let’s turn it around and move the other way.”

The answer is obvious – vote for Jeremy Corbyn because he is the real candidate for aspiration and change!

 

 

Jeremy Corbyn speaking at the Durham Miners Gala yesterday, 11th July 2015.

 

 

Recipe for Ruin: TTIP, the Transatlantic Trade and Investment Partnership

 

Cameron’s Mythical Dragons

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Cameron’s Mythical Dragons

First posted March 24, 2013 by garryk99

01021_george_and_the_dragon

You know a Government is in trouble when they start slaying mythical dragons.

David Cameron announced this week that immigrants families would face being ineligible to apply for a Council house for up to five years. The Prime Minister has been under pressure from Conservative MPs since their appalling Eastleigh by-election result, where they slumped to third behind UKIP. The UKIP campaign was based strongly on an anti-immigration and anti-EU stance.

With a background of a stalling economy, poor poll ratings, internal conflict and a stress-cracked Coalition, the omens for the next election look poor for the Conservatives. With under three years to go, it would take a remarkable and unlikely turn around to reverse the trend.

So how does such a Government in this mess move forward?

They roll out their mythical dragons to slay.

For the Conservatives these are the EU, immigration, the public sector, unions, the welfare state and the so called deficit. Each is chosen for a number of reasons.

Firstly, the myth must be commonly shared. It is useful if your friends in the media will propagate helpful stories, using one-off extreme cases to demonstrate the rule. For example, a single mother with eleven children was the centre of a media storm last month. This case was used to demonstrate the ‘failing of an over generous benefit system’ , despite being a highly unusual case that represents a minuscule percentage of benefit claimants. The domination of the right-wing press ensures that such issues are rarely portrayed accurately, or with a fair evidential basis.

Secondly, each dragon should represent a group that is vulnerable and weak. This applies to immigrants and welfare claimants. These groups do not have the influence to seriously fight back.

Thirdly, the concept of scape-goating should apply. Are immigrants responsible for the lack of social housing? No, the issue is decades of not building them, while simultaneously selling the stock off. Are people on Job Seekers Allowance holding back the country and responsible for their own worklessness? No, our economy is so configured to ensure a permanent high level of unemployment to create a downward pressure on wages, and transfer wealth to global corporations and the super-rich.  Scape-goating also helps to ensure ordinary workers focus their rage on those they should unite with. Why should the elite fight everyone else, when they can have ordinary people fight among themselves?

The Conservatives know that organised labour remains a barrier to eroding employee rights and creating the  preconditions which would enable global capitalists to further asset strip the people of the United Kingdom. This is why the public sector and Unions are targets for slaying, not because they are bad, but for ideological reasons. The Miners strike in 1984-85 was a classic case of artificially constructing a fight, with the intention of destabilising the union movement and to justify a reduction in union rights.

The Conservatives always talk about the deficit as something Labour grew so large due to spending too much. This is nonsense, and even a cursory look at historical data blows this myth out of the water. The deficit is being used as a trojan horse to fragment and privatise our services for corporate profit.

So given the Conservatives inability to win the next election based on their performance or benefit they have brought to people, we can expect two years of further attacks on the classic Tory dragons.

Those on the left need to ensure that they fight every myth propagated by this Government, as it gets down and dirty heading towards 2015. No action should be done or speech made that gives credence  to these myths.

This lesson needs to be quickly learned by the Shadow Cabinet.

Are you listening Liam Byrne?

Thom Hartmann describes Osborne’s vision for the UK

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The Middle Class Decline – It all began with Reagan*

 

Published on Jul 19, 2012
Thom Hartmann rants about the decline of the US middle class and how he believes it all began under former President Ronald Reagan and his failed economic policies.

Contrary the usual assumption, the US is not the richest country. It is only 15th in the global ranking of median wages… but the combined wealth of the richest 400 Americans is greater than the combined wealth of the poorest 50%.

It is clear that the Tory/LD government’s intention is to take the UK as far down the road of emulating the US as they can.  Assessment of George Osborne’s Comprehensive Spending Review (October 2010) indicated that if all his proposed cuts were implemented, spending in the UK would be less than that of the US by 2014/15.  See also  Soylent Green, George Osborne and Plutonomy.

*  It all began with Mrs Thatcher as far as we in the UK are concerned!  But the wider truth is that Regan and Thatcher were just the willing puppets, not the puppet-masters.

The Left Must Reform Public Services Too

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The most feared word to our public services is reform.

Reform has become a by-word for cuts and privatisation. Take, for example, the NHS reforms currently going through Parliament, or the changes to DLA. Both are ideological changes designed to privatise one and simply reduce payments to the other.

However, while fighting these reforms, the left cannot rest on their laurels. Our public services do need reforms, but not the ones offered by the Coalition. They are needed to better serve the need of service users, in a way that maximises precious resources. They are needed to reaffirm to the United Kingdom that public services are the most cost effective way of delivering vital services, with the best outcomes for service users. Without changes, those forces that are pushing for privatisation will gain a stronger and stronger voice.

A major issue is the lack of intermediate community care. I have recently experienced this with a relative who is elderly suffering from early dementia and a heart condition. In the last 6 months she has been hospitalised around 10 times. Her heart condition and dementia are beyond the scope of her GP as her needs are complex. However, as there is no provision for community care, this resulted in her worsening on a number of occasions to a degree that required hospitalisation. This is invariably expensive and can result in people getting help when it is too late, so the intervention is less successful.

This is common with conditions like diabetes too. If managed in the community by more specialist community care teams, it is substantially cheaper than hospitalisation with much better patient outcomes. It would preserve hospitals for those matters that only they can handle.

We need to wean ourselves from too much concentration on hospitals. Many local hospitals provide a skeleton service, when nearby there is a larger, more equipped hospital with better specialists available. People do love their local hospital, but I believe diverting resources partially to bigger hospitals and to community services from local skeleton hospitals would result in better health care at a lower price.

Another area where co-ordination is poor is that between the NHS and social services. From September to October 2011 128,000 days delay were incurred by the NHS because of bed-blocking – when patients can’t be discharged as the services they need are not in place in the community [1] . This figure had been falling, but the impact of cuts to local social services budgets has reversed the figures. Each day in a hospital bed costs an average of £255. Therefore, the cost to the NHS of 128,000 days of delays amounts to nearly £33 million, annualised to nearly £196 million. This far exceeds the cost of providing care in the community.

In the last year or so, my Son has been going through the system for a diagnosis for a condition on the autistic spectrum. Quite frankly, no-one would believe how dreadfully poor this service is, and how badly under funded these services are. In this battle to find the required support at school, we are on our third school in year. Read any of the forums about parents battling this, and you get the same story time after time. It’s a national scandal every bit as poor as our national treatment of the elderly. The reform required here is a large increase in funding, much better training for teachers and a smoother journey between the different professionals involved.

Education services require reform too. Schools are in an excellent position to pick up problems with children who without intervention are likely to grow up into uneducated, workless adults who are at risk of getting involved with crime. Early intervention is far cheaper, as the right investment will be likely to produce a law abiding taxpayer. Without intervention the cost of benefit payments, the cost to the justice system, and most of all the personal cost, it is crazy to not intervene early. The transfer of resources from the justice system to the education system deals with the root cause and not the symptoms. The Coalition have promised to help 120,000 families at most risk, but this is not enough.

All this co-ordination and improvement is impossible with broken up and privatised services. The left should argue that these reforms are required and in the best interests of the country. Only a reformed truly public sector can deliver this.

Sources

[1] http://www.bbc.co.uk/news/health-15198431