Tag Archives: economy

Labour backs away from credible opposition by copying Tories on economics

Annaliese Dodds: do you really think you could trust this woman with the economy?

Keir Starmer’s Labour has announced that its new economic policy is to copy the Conservatives. Why not? Starmer’s copying the Tories in everything else!

Starmer, now well on his way to infamy as the worst leader in the more-than-100-year history of the Labour Party, may have turned the announcement over to his shadow chancellor, Anneliese Dodds, but it has his naive pawprints all over it.

Because it’s yet another example of an inexperienced politician, who doesn’t stand for anything apart from grabbing power for himself, blowing in the wind.

The Financial Times gave the game away.

Shadow chancellor Anneliese Dodds will signal on Wednesday that the Labour party is backing away from the hard-left economic policies of former leader Jeremy Corbyn

Sorry, what? “Hard-left” policies?

Corbyn was never hard-left and the author of the FT piece – Chris Giles, whose criticism of the Tories over the number of people dying due to Covid-19 has been exemplary – should know better. Perhaps he is being led by his ideological nose.

If Corbyn had been hard-left, he would have been demanding the nationalisation of everything and the end of individual property ownership. Hard-left policies require everything to be owned by the state and he never advocated that.

Corbyn’s policies were most similar to those of the Scandinavian countries – and anybody with an eye on international affairs will know that, economically, those nations are much more stable than the UK; their people far more prosperous. The UK would have been better-off under Corbyn’s economic policies.

But Starmer wants to turn his back on them because he is a Conservative at heart.

The trouble is, we already have a Conservative Party in the UK. Returning to the policies that lost Labour two elections (in 2010 and 2015 respectively) will not help a Labour leader who has failed to win a single victory against Boris Johnson’s inept and imbecilic Conservatives.

But that is exactly what Dodd’s is announcing.

In the annual Mais Lecture, she will cloak Labour’s strategy to become the UK’s next government in the latest thinking from international organisations such as the IMF, which recommends waiting until unemployment falls and the recovery is complete before thinking about the sustainability of public finances.

So, it’s back to austerity for Labour. That will be a long wait.

The best way to increase employment is to invest in it – not to leave everything to the market. That is hard-right neoliberalism and Labour should not have anything to do with it. Sadly, Labour members elected a Conservative as their party leader and he is imposing hard-right Conservative policies on them whether they want them or not.

The fact that he lied, lied, and lied again to get himself elected only partially excuses them (as it was clear that he was lying).

Strangely, in her speech, Dodds will distance herself from the economic programme Labour put forward in the run-up to the 2019 general election, that offered spending increases of £83 billion – a modest amount in comparison with the hundreds of billions splurged by Boris Johnson in the last year.

Instead, she will align Labour’s economic policy with that of the Tories, while referring to “responsible” policies no fewer than 23 times. There is nothing “responsible” about Conservative economic policy, or about aligning with them.

There’s an easy test for this. Conservative neoliberalism has been the dominant economic policy in the UK since 1979, when Margaret Thatcher was first elected into office.

At that time, a family of four could afford to pay the mortgage on their house together with all household bills including groceries and vehicle running costs, from the wages of just one parent – and still had enough left over for a holiday away from home during the summer.

Is that possible now?

No, it isn’t. Most of us are much worse-off after 41 years of this nonsense – apart from people in positions of extreme power, including MPs like Starmer and Dodds.

So perhaps there is an intention to help in this policy change. Starmer and Dodds are planning to help themselves.

Their predictable lapse into neoliberalism has been greeted with a chorus of derision from everybody who understands what it means:

Who would? The voting public certainly won’t.

Source: Labour signals end of Corbyn era in setting out economic vision | Financial Times

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Yes, but what does Covid-19 do to people who DON’T die?

Spotted on Facebook:

Some other stats were discussed based on the question “if we let the virus rip through the population on an assumed 1% mortality rate, how could this shut down the U.K.?”
Here was the answer:
There are two problems with this question.
1. It neglects the law of large numbers; and
2. It assumes that one of two things happen: you die or you’re 100% fine.
The UK has a population of 66,650,000. If one percent of the population dies, that’s
666,500 people dead.
Six hundred thousand people dead would monkey wrench the economy no matter what.
That more than doubles the number of annual deaths all at once.
The second bit is people keep talking about deaths. Deaths, deaths, deaths. Only one percent die! Just one percent! One is a small number! No big deal, right?
What about the people who survive?
For every one person who dies:
– 19 more require hospitalisation.
– 18 of those will have permanent heart damage for the rest of their lives.
– 10 will have permanent lung damage.
– 3 will have strokes.
– 2 will have neurological damage that leads to chronic weakness and loss of
coordination.
– 2 will have neurological damage that leads to loss of cognitive function.
So now all of a sudden, that “but it’s only 1% fatal!” becomes:
– 666,500 people dead.
– 12,471,600 hospitalized.
– 11,815,200 people with permanent heart damage.
– 6,564,000 people with permanent lung darnage.
– 1,969,200 people with strokes.
– 1,312,800 people with muscle weakness.
– 1,312,800 people with loss of cognitive function.
That’s the thing that the folks who keep going on about “only 1% dead, what’s the big deal?”
don’t get.
The choice is not “ruin the economy to save 1%”.If we reopen the economy, it will be
destroyed anyway. The UK economy cannot survive everyone getting COVID-19.
Here’s more information on ‘Long Covid’ from the British Medical Journal.

We’re not at one per cent deaths yet, but even the official figures (which are probably false) show 0.1 per cent deaths.

So we can assume current figures are one-tenth of those listed above.

That’s 1.25 million people hospitalised.

1.2 million with permanent heart damage.

656,000 with permanent lung damage.

200,000 with strokes.

131,000 with muscle weakness.

131,000 with loss of cognitive function.

Now.

How many of those are – or rather, were – contributing to the economy before catching the disease? How many will be able to continue doing so?

By failing to prepare properly; by selling off our PPE and failing to stock up on ventilators; by delaying positive action; by keeping the borders open (a contradiction of Tory policy, surely?); by using the emergency procurement procedure as a subsidy system for their spoilt friends; and by fooling around with the distribution of the new vaccines for the sake of a false public-relations coup, Boris Johnson and his Tories have crippled the UK’s population for years – possibly decades – to come.

And you know what’s going to happen?

It will be the people who can no longer work who will get the blame (and who won’t get any benefits).

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Sunak says home workers should spend cash they’ve saved when the pandemic ends. Including him?

Rishi Sunak’s last big idea was ‘Eat Out to Help Out’ – which pushed up Covid-19 infections dramatically. Now he wants us to spend all our savings to buoy up the economy after the crisis ends – but you’ll notice he hasn’t announced that he’ll do the same.

Tory Chancellor Rishi Sunak has said that people who work at home, and who have saved significant amounts of money during the Covid-19 pandemic, should spend it all when the emergency is over.

Does that include him?

He works from home – he lives at 11 Downing Street. And we all recently learned that he has enormous amounts of cash saved up, via his wife’s £430 million stake in her family firm.

So we should welcome his demand – right?

Well… maybe not.

He hasn’t said that he will be leading by example, after all.

He has merely demanded that people like This Writer – I work from home (although I can’t say I have built up large amounts of savings) – splurge everything that we have. He hasn’t mentioned anything about doing the same himself – or that other super-rich Tories should do so.

So this is just a call for people – who are normally poor but have become slightly richer – to throw away everything that they’ve saved.

And people have cottoned on to his con:

Personally, I am looking forward to Sunak’s announcement that he has spent his vast wealth to help regenerate the UK’s economy – and to seeing evidence of this spending.

When he has done this, I hope to see this example leading other super-rich members of the UK’s communities to do the same.

Only when they have put their cash into restoration work should the demand trickle down to those of us who are less rich than Rishi and his Tory chums.

That’s right – trickle down. This is one instance where the “trickle down” effect might actually work in the way Tories and other neoliberals used to pretend; not with money gathered by the super-rich trickling down to benefit poorer people, but with cash spent by them revitalising the economy for everyone.

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Should anyone be surprised that Brexit will cost more than Covid – in the long term?

This Writer’s initial reaction to Bank of England governor Andrew Bailey’s claim that a no-deal Brexit will cost more than Covid was:

Is that because most of the cost of Covid was due to short-term profiteering by Tory crony companies?

The cost to the UK of this nonsense is short-term, though; when the pandemic is finally under control, the profiteers won’t have an opportunity to screw any more cash out of the Treasury.

But the loss of the free trade deals the UK enjoyed as a member of the European Union will have long-term effects that may last many years:

LSE modelling estimates a reduction in GDP worth 8% over a decade compared with remaining in the EU.

Asked about the research, Bailey said economic models suggested there would be long-term consequences, as it could take a long time for the UK to adjust to a new trading relationship. “It takes a much longer period of time for the real side of the economy to adjust to the change in openness and change in the profile of trade,” he said.

Bailey was talking about the effects of a “no-deal” Brexit but be warned that even a deal will place the UK at a disadvantage.

Source: No-deal Brexit to cost more than Covid, Bank of England governor says | Politics | The Guardian

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George ‘Useless’ Eustace doubles down on lie that Tory government has provided money to feed kids

Defending the indefensible: Environment Secretary George Eustice believes children should starve during the holidays, asylum seekers should drown and people should die of Covid-19 rather than let the economy be harmed.

There’s a good reason his nickname is ‘Useless’.

Environment Secretary George Eustace has repeated the insistence of Boris Johnson’s government that it will not provide any funding to feed poverty-stricken children at Christmas.

Interviewed by Kay Burley on Sky News, he said:

Burley provided robust rebuttals of his claims, and could have also pointed out that there is a five-week wait before Universal Credit claims are honoured (if they are allowed) – and that free school meals were provided outside of term time earlier this year because of the Covid-19 crisis that has forced millions of people to take a huge pay cut and that crisis is still going on.

As for the £63 million fund to councils…

Useless – sorry, Eustice – covered himself with shame during his trip round the TV stations today (October 28).

After two adults and two children died on a boat trying to get into the UK, he supported Priti Patel’s line that, rather than creating a new system which would allow asylum seekers to apply for refuge in the UK from outside its borders, the UK should block off all legal channels to do so.

This, of course, creates a huge market for illegal traffickers to send would-be migrants on unsafe channel crossings in which they may die. To Dan Walker on BBC Breakfast, Eustice said:

As you can tell, he doesn’t care if Johnny or Jane Foreigner dies; he just wants to keep them out.

To top it all, when Walker asked why the Johnson government ignored the advice of SAGE to have a lockdown in September in order to avoid having more than 200 deaths a day by mid-November – advice which seems to have been borne out by the fact that 367 deaths were recorded yesterday (October 27) – Useless Eustice said Johnson had chosen to do what he thought was right for the economy, not for the people:

Eustice is a former public relations executive who apparently learned his journalism at Cornwall College in Pool, Cornwall – which happens to be where This Writer did a postgraduate course in journalism.

I don’t think he was there when I was. Otherwise I would now be filled with regret for missing the opportunity to contribute to the national well-being by putting him off politics.

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The idiocy of Robert Jenrick – he’s a bigger danger to the public than the young people he’s attacking

Robert ‘bent as a nine-bob note’ Jenrick: He broke housing rules to save his mate Richard Desmond £50 million; he broke lockdown rules to visit his spare homes and see his family; he voted against safety procedures for tower blocks in the wake of the Grenfell Tragedy; but he thinks young people should be blamed for increased Covid-19 infections and wants them to wash their hands.

Robert Jenrick, who is still the Conservative housing secretary despite a strong of corrupt misuses of the role, appeared on the TV news programmes today (September 8) to patronise the public about Covid-19 safety.

Reading from a script set out by Matt Hancock yesterday, he tried to claim that young people need to stick to the Tory governments rules for not spreading the virus. There is still no evidence to show that people aged 20-29 are spreading it in the same way their counterparts in Europe were found to be.

And Jenrick himself is one of those who broke his own government’s lockdown rules – twice – so he could visit his second home – a huge mansion – and visit family members staying there.

The response was strong:

Jenrick’s own claim to be acting in the name of public safety has been hotly disputed, partly because he is more interested in getting parents back to work and reviving the economy than in the safety of children at school –

If you want to know how that’s going, here are the figures:

– and especially after the man who is, remember, housing secretary helped vote down an attempt to make housing safer in the wake of the Grenfell Tragedy.

The Labour Party tried to amend the Fire Safety Bill currently going through Parliament to include recommendations of the Grenfell Inquiry’s phase one report, published last October – including the removal of flammable cladding from buildings where people live.

Shockingly, despite a government undertaking to remove this potentially fatal substance, the latest government figures released in August showed that Grenfell-style cladding had not been removed from more than 80 per cent of private sector buildings and nearly 50 per cent of social sector buildings.

Jenrick voted against the amendment, alongside the rest of his murderous Tory Party.

If any more fires happen due to this cladding, then the Tories who took part in that vote should be held responsible for any deaths.

To add hypocrisy to this injury, let’s all remember that Jenrick had the cheek to lay a wreath at the memorial wall beside Grenfell Tower for the first anniversary of the tragedy:

Of course he won’t face justice for any of his corrupt choices.

As a Tory minister, Robert Jenrick remains well above the law and the police absolutely refuse to investigate any crimes alleged against him.

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Yes, it is more ‘meal deal’ than ‘new deal’ – but Sunak’s summer statement isn’t ALL bad

Rishi Sunak: his job could be hanging on the result of this plan. Shame it has already been sabotaged by his boss Boris Johnson.

It didn’t matter what Rishi Sunak was going to say in his summer statement because Boris Johnson, Matt Hancock and the other Tories had already sabotaged it.

Sunak’s objective is to save jobs while the UK works through the post-Covid recession, but his problem is that his colleagues’ insistence on easing lockdown means the Coronavirus isn’t over yet – no matter what Johnson says.

In this nation of shopkeepers (as Napoleon had it), if we want to keep people in their jobs, we need to keep spending money into – and through – the economy. That means going out and paying for things.

But the number of new infections in the UK is high – and will remain so, while Johnson insists on helping the virus infect other people by opening pubs, schools, and whatever else he’s planning next.

That means people are going to be reluctant to resume normal patterns of social consumption.

It’s going to be difficult in the extreme to restore confidence after these Tory blunders. After schools and pubs, Johnson can claim it is our social duty to go back out and spend until he is redder in the face than the gammons he represents, but the public will only hear him telling us to go out, catch the virus and die.

That’s the second hurdle that Sunak faces; thanks to Johnson, public trust in the claims of politicians is at an all-time low, being worsened all the time by his insistence on lying whenever the mood takes him and refusing to apologise when his lies are exposed.

So the ending of the furlough scheme in October is directly counter-productive; watch the number of redundancies increase when that month comes round and try to tell me I’m wrong.

The offer of a £1,000 “jobs retention bonus” is likely to fall similarly flat. The conditions are that employees must be carrying out proper work, and be paid at least £520 per month – the lower limit of National Insurance payment – and it seems unlikely that many employers will be able to manage this.

Similarly, the VAT cut from 20 per cent to just five per cent to help out restaurants, pubs, cafes, B&Bs, hotels, theme parks and cinemas may only have limited success. Who’s going to go, if there’s a chance they’ll catch a fatal disease?

Sector-specific stimuli such as this are a good idea – don’t get me wrong – and this would work if the number of Covid infections was much lower than it is (in England, at least) – and if more people were interested in wearing face masks, perhaps (how would that work, when they’re eating food?) – but as I’ve already mentioned, Johnson has put a stop to that with his ridiculous blunderings.

And the already-infamous “meal deal” voucher, offering 50 per cent of the cost of meals for everybody eating out between Monday and Wednesday, throughout August, may go hungry for customers. Here’s the reason:

On the other hand, raising the threshold for stamp duty from £125,000 to £500,000 might conceivably be a good idea, if it stimulates construction work as people are encouraged to buy new homes.

Possibly best of all the measures laid out in the statement was a scheme to create jobs for young people, subsidising six-month work placements for people aged 16-24.

If this is used to re-skill the workforce – actually preparing the UK for future opportunities – then it has enormous merit.

But I can see employers using it as a cheap alternative to the workers they already have. Why take just £1,000 over three months to keep on your current workforce when the Tories will give you a teenager for twice as long and pay all of their costs?

So my initial verdict is that this is final proof of the Conservative government’s economic illiteracy; they really couldn’t run a p***-up in a brewery.

But it would be wrong to pre-judge a plan that hasn’t gone into practice yet.

The sad part is that this may break Sunak but Johnson will laugh it off, no matter how disastrous the result.

Source: Coronavirus: Chancellor Rishi Sunak unveils £30bn plan to save jobs – BBC News

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Bank of England pumps £100bn into UK economy – but who gets the money?

Money: the Bank of England has pumped £100 billion into the UK economy to ease the strain caused by the Covid-19 crisis – but you won’t see a single penny of it. In fact, you are more likely to be asked to pay back the investment.

This is a wake-up call.

If you’ve seen reports that the Bank of England is bailing out the UK economy with £100 billion of what’s called QE (quantitative easing), you may have been lulled into a belief that everything’s going to be fine.

You would be mistaken.

The UK economy has taken a pounding because of the Covid-19 crisis. We are currently in the grip of an economic recession that makes the 2008/9 financial crisis look like the temporary misplacement of a back-pocket fiver.

In March, the economy shrank by around six per cent. In April, it shrank by a further 20.4 per cent. This Site doesn’t have numbers for May and June.

That meant 600,000 people lost their jobs between March and May. Many more found themselves suffering 20 per cent pay cuts as they were put on the government’s furlough scheme.

Employers were also put under extreme pressure as they have to pay what’s known as “overheads” – rent/mortgage on the land/buildings they use, power, supplies if they are perishable, and so on.

It is an established economic fact that money pumped into a financial system has a far more beneficial effect, if it goes to the poorest people – those who were hardest-hit by the current crisis, as they were by the financial crisis of 2008/9 before this.

They didn’t see a single penny of the QE that came into the economy after the recession of 11/12 years ago, and they won’t see a penny of the new £100 billion.

In fact, they’ll be told to pay back the cash that the government has provided for them, even though they’ve been given less than enough to survive comfortably as it is.

If This Writer recalls correctly, QE for the financial crisis went no further than the large financial institutions the Bank of England deals with on a day-to-day basis.

These would then lend the money to businesses and other organisations, with a view towards receiving the cash back – with interest – in the future.

The businesses then increase the prices of their goods while depressing the pay they give their workers.

Have you spotted the reason this won’t work?

Source: Coronavirus: Bank pumps £100bn into UK economy to aid recovery – BBC News

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If Eton isn’t reopening until at least September, why the hurry to bring back state schools?

Closed: and apparently Eton won’t be open to pupils until at least September.

Don’t you think it’s a bit strange?

I mean, if it was safe to reopen schools at the beginning of June, you’d think the recipients of the most expensive education in the United Kingdom would be desperate to get their noses back to the grindstone. Wouldn’t you?

And their parents – many of whom are, I’m sure, inhabiting chairs in Boris Johnson’s cabinet – would be lining up to send them.

But it seems there’s no chance of Eton (for example) reopening its doors until September at the earliest.

We know that there’s no scientific support for schools opening so soon.

We know that teachers and teaching unions are absolutely opposed to it – along with the British Medical Association:

We know that the devolved administrations of Wales, Scotland and Northern Ireland won’t be allowing it – along with some English cities whose leaders are thinking for themselves:

And protest against the Tory plan to force our children back into school, without having shown any interest in making them safe, is mounting:

So why are the Tories so hasty about getting your kids back to school where they’ll almost certainly catch Covid-19 and give it to you?

Here’s a thought:

Perhaps it’s because, as long as children are out of school, parents are divided between staying home to look after them and going to work. With the kids in school, the parents have no reason to stay away and the economy can get moving again, making money for the Tories’ billionaire donors.

It’s a stupid, stupid rationale, I know. If the kids catch Covid-19 in schools (because there won’t be any social distancing there – try telling four, five and six-year-olds they have to stay at least two metres away from anyone else), and transmit it to their parents, then the adults will be busy trying not to die, rather than working.

But then: what’s rational about the Tory response to coronavirus?

Coronavirus: have the Tories told a big lie? Do they expect HUNDREDS of THOUSANDS of DEATHS?

Did I make that headline big enough for you?

According to Byline Times, the people there have gained access to a Home Office conference call that shows the facts about Tory government policy on the coronavirus: heartless and two-faced.

It seems the government does not expect a vaccine to appear before most of the population has caught the virus – and expects around 264,000 of us to die in the long term.

This is the scientific advice behind the government’s policy on coronavirus; remember that when Dominic Raab or Boris Johnson come out to a press conference and say they’re “following scientific advice”.

So it seems the Tories want to downplay the dangers of going to work. As we’re all going to catch Covid-19 anyway, they want us to get back to servicing their economy.

We already know that Tory policy is to “flatten the curve” of coronavirus infections – ensure that the rate of infection slows to one that the NHS can manage, after years in which that party, in government, has starved it of investment in favour of giving money to profit-making firms.

But it turns out that a more accurate description is that Tory policy is simply to slow down “the rate at which we get this virus [which] has direct impact on the NHS”.

So sending us home might have more to do with preventing the NHS from having to deal with it – even if it means people die in their homes (or care homes); and it explains why vulnerable people received letters saying they would be denied treatment if they caught the disease.

The whole strategy suggests that the Tories have never shifted from the “herd immunity” nonsense spouted by Boris Johnson in early March; they want us to “take it on the chin” and if we die in a quiet corner as a result, that’s just too bad.

And it seems that, while we wait for a vaccine that may be a long time coming, we will experience several peaks in infections, each increasing the aggregate number of deaths.

These assumptions are supported by a lot of bad science.

First, it was claimed that the coronavirus cannot survive more than 48 hours on hard surfaces and clothing; in fact survive on hard, shiny surfaces like plastic and steel for up to 72 hours, up to four days on glass and paper money, and as much as seven days on the outside of a surgical mask. Suggestions of a shorter lifespan are begging for people to be infected.

It was also suggested that the coronavirus is uniformly spread across the country, and that this is the reason it is not possible to stop it spreading – but without mass community testing it is impossible to make that claim.

Statements in support of people going to work are contradictory in the extreme.

People who go to work while a vulnerable person is at home are said to be protecting that person because they don’t have to leave the house – but then if the worker catches Covid-19 their housemate is likely to die of it.

So a person going out to work must put a vulnerable person in their household at higher risk!

Going to work is justified because it would keep the economy moving – and said to be equivalent in risk to staying at home or shopping, again on the grounds that we are all doomed to get the virus.

“It’s perfectly okay to carry on in your business” is the claim – made only, it seems, to support the economy rather than to support workers’ safety.

In other words, it seems to be Tory policy for people to put themselves at risk of contracting Covid-19, in order to keep money flowing into the hands of the already-rich. If true: despicable.

Source: COVID-19 SPECIAL INVESTIGATION: Leaked Home Office Call Reveals Government wants Economy to ‘Continue Running’ as ‘We Will All Get’ COVID-19 Anyway – Byline Times

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

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The Livingstone Presumption is now available
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