Tag Archives: public services

‘A great deal’ for whom? The UK will haemorrhage money!

Thumb up: But Boris Johnson won’t lose money on his Brexit deal like the rest of us.

Read this, which refers to Boris Johnson’s new Brexit deal:

A “great deal”? Or a nightmare?

Some of you will no doubt be saying, “Don’t give us all that Project Fear talk, Mike! It’s all just scaremongering to keep us as vassals to the fascist EU superstate!” Or whatever.

But is it scaremongering? Is it really, when the economic figures come from Boris Johnson’s own official government analysis?

Isn’t it more accurate to say that the unelected prime minister is once again lying through his teeth in the knowledge that the kind of voter who would respond as I suggest above will lap it up?

Analysis published by the UK government last November suggested that a deal along the lines of that agreed by Johnson would have a major adverse economic impact on the UK, with British people hit by falling wages and declining growth.

Consider this:

Johnson’s own government’s analysis suggested that a deal along the lines of that agreed on Thursday will reduce annual economic growth by 6.7% compared to staying in the EU. That’s a major hit to the UK economy which will make average households thousands of pounds poorer than they would have been had we remained in the EU.

The UK government’s own analysis also suggested that a deal along the lines of Johnson’s would have a big impact on the average wages of people living in the UK. According to its central projection, average real terms wages would fall by 6.4% compared to staying in the EU.

The economic hit would inevitably lead to the UK government being forced to borrow more, or dramatically slash the services it provides to the public. According to the government’s own analysis, there would be a 3% increase in borrowing as a percentage of economic growth.

Admittedly, negotiations over the final shape of the UK’s future trading relationship with Europe – and the rest of the world – have not yet begun – Boris “Get Brexit Done” Johnson lied about that too.

But the broad direction is clear. The UK economy is going into a ditch.

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Grouse shooting estates: Why is Theresa May starving our public services in order to make a small number of toffs extremely rich?

Why were we funding these estates in the first place, let alone increasing that funding now?

Public money is for services to which all the public may have need or should have access.

Grouse shooting estates do not qualify.

Mrs May needs to explain why she is depriving us all of the services I mentioned above, and using the money to make a very small number of people exceedingly rich.

Theresa May says there isn’t enough money for doctors, nurses, hospitals, firefighters, so little money that she has had to cut 20,000 frontline police officers, not enough money to help the 400,000 more children in poverty since her government came to power, the 300,000 more pensioners in poverty or the homeless whose numbers have risen by 53% since 2010 …

… BUT SHE’S FOUND ENOUGH OF OUR MONEY TO INCREASE SUBSIDIES FOR GROUSE SHOOTING ESTATES FROM £30 PER HECTARE TO £56 PER HECTARE?

The amount you are now paying for her wealthy mates ‘sport’ has risen from £45m to £84m.

Exceedingly rich people are about to get considerably richer – all willingly paid for by you and me.

Source: Theresa May INCREASES taxpayer subsidies for her wealthy mates to go grouse shooting | Pride’s Purge

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A quick thought about the Conservative ‘tax lock’ silliness

Anyone who thinks David Cameron’s promise of a five-year ‘tax lock’ is a good idea must need psychiatric help.

Cameron promised to introduce a law banning income tax, VAT or national insurance increases in the next parliament if the Conservative Party is elected back into office, clearly in the belief that anybody on average wages or less is too stupid to know what this means.

We know better, don’t we?

We know that taxes are set according to each income group’s ability to pay. This means that people in the lowest taxable bracket pay the lowest amount, as they need most of the money they earn in order to pay their way. The amount of tax then increases by increments up to the highest earners – who take home considerably more than they need to survive, and who can therefore afford to contribute a much larger amount with no impact on their quality of life.

We also know that a five-year ‘tax lock’ will not affect the lowest-earning people at all. Nobody earning up to £10,600 pays any tax at the moment, so a freeze on nothing is still nothing.

What will it do to the people in the highest tax bracket? Well, it depends what they earn and how fast their pay increases, doesn’t it? Let’s have a look at the handy guide to average UK pay rises, created by fellow blogger Tom Pride last November:

141112average-uk-pay-risesTomPride

So the director of a FTSE 100 company, paid the average amount of a mere £2.4 million, would have contributed 45 per cent in tax, or £1.08 million in the 2014-15 tax year. Over a five-year period, if that person’s income continued to rise at 14 per cent, then by 2020 – at a 45 per cent tax rate – they would pay a total of £8,138,360 in tax over the years until 2020. That’s certainly a respectable figure.

But Labour has proposed an increase in the top rate of tax, back to 50 per cent. Under the same conditions, this would mean FTSE 100 directors earning £2.4 million in the tax year 2014-15 would pay £9,042,623.

That’s a difference of £904,263; nearly a million pounds each.

This writer doesn’t have current figures for banker salaries and cannot, therefore, work out how much tax they would pay – but you can see for yourself that the difference between the two scenarios is likely to come to several million pounds per top banker.

Those people don’t need that amount of money in order to survive. The cost of living in the UK is less than 1/50 of what the FTSE directors take home, let alone the bankers. But David Cameron wants them to keep that money.

Meanwhile the UK Treasury goes without millions of pounds that could be used to help balance the national deficit, pay off the national debt, and boost the economy.

We’re back to ‘Starve the Beast’ economics again. The nation’s finances can go to Hell, as far as Cameron is concerned. He wants to starve the Treasury with tax cuts for the rich – either actual cuts or de facto cuts like his ‘tax lock’ – and then claim that public services cost too much and will have to be scrapped or sold off to rich corporations in return for donations to the Conservative Party – as we have seen in the years of the Coalition Government (most obviously in the case of the NHS).

Unless you are a banker, an FTSE100 director, or a member of Parliament, you would be mad to support such a wasteful and selfish plan.

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Poverty is the theme of the 2015 UK general election

15022013m-in-poverty-half-in-working-households_JRF

[Image: Joseph Rowntree Foundation.]

If the 2015 general election should have any theme at all, it is POVERTY.

Think about it; poverty has been the defining force in all our lives since David Cameron squelched into office with all his slimy mates and his treacherous new allies in the Liberal Democrats.

They used the threat of it to get more seats than the Labour Party (even though Labour did not overspend, and Labour’s methods of dealing with the ballooning national deficit – created by bankers – were far more effective than Tory austerity) and gain office in the first place.

They imposed it on the nation with their austerity cuts to investment, public services, and benefits.

Then they used it to divide us against ourselves, by pointing at the ‘have nots’ and calling them ugly words like ‘scrounger’, or ‘layabout’, or saying that ‘a life on benefits has become their lifestyle’. None of this is true. On Question Time last night (it is Friday as this is written), Michael Heseltine trotted out Iain Duncan Smith’s tired line about three generations of people on benefits as if it had any credibility (it hasn’t).

Meanwhile, the number of people in poverty is increasing rapidly. Today, 13 million people in the UK are in poverty – that’s nearly a quarter of the population. In 2010-11, the year the Coalition came into office, 61,468 people were using food-banks. By 2013-14, this had risen by nearly 1,500 per cent to 913,138 people.

The Coalition government consider this to be a great success and David Cameron wants you to re-elect him so he can inflict even more cuts and poverty on you, your family and your friends.

150220Poverty-in-private-rented-households_JRF

Perhaps you don’t know what poverty is like. Perhaps you’ve never experienced it.

Jack Monroe has. She gave evidence to the all-party parliamentary group inquiry into hunger and food bank use in the UK. Here’s part of how she describes it:

“Poverty took me from being the girl who was always the lead in the school play, to a woman who can’t open her own front door. I suffer panic attacks, anxiety attacks, seemingly random triggers that immobilise me, render me useless but simultaneously unable to explain myself. I’ve cancelled talks and events, crushed into a corner of my sofa, sobbing until my guts ache at the drop of a final demand letter from a years-old debt landing on my door mat. One doorbell ringing unexpectedly last April sent me scuttling to hide at the top of my landing, peering fearfully down the hallway until whoever it was went away. I often miss interviews, because a certain broadcasting corporation calls from unknown or withheld numbers, and I just can’t bring myself to answer them. I’ve lost count of the number of people who tell me my poverty wasn’t real enough, or long enough, or whatever their particular factors deem to be poor enough – and all I can say to them, is that I can’t even open my own front door.”

Is that what you want for yourself? For your family (what kind of person would want that for their family)? For your friends (what kind of person would want that for their friends)?

Of course you don’t. But if you go out on May 7 and vote Conservative, you’ll be condemning somebody to it – or to the kind of death that we’ve seen too often over the last few years. Remember the man who was crushed in a waste compactor while he was looking for food in litter bins? Remember the man who froze to death on the street after being sanctioned off-benefit? How many have hanged themselves because the couldn’t see any future for themselves?

Here’s some advice. If you’re thinking of voting Conservative on May 7, do the whole country a favour:

Don’t even open your own front door.

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George Osborne’s failure

What an embarrassment: George Osborne's silly ideas about the economy are enough to embarrass anybody.

What an embarrassment: George Osborne’s silly ideas about the economy are enough to make anybody red-faced.

You probably won’t find the failure of the Conservative-led Coalition government laid out any more bluntly than this.

Speaking at Jaguar Land Rover in the West Midlands today (Monday), Ed Balls said George Osborne had failed to reduce the national deficit because of disappointing tax revenues.

“To make up that shortfall, George Osborne has now said he is going to carry on with even bigger spending cuts in the next parliament,” he said, adding that this will result in the biggest cuts in public services over the next five years in any country around the world.

“I don’t think that plan is remotely credible,” said Mr Balls.

He’s right.

Osborne cut public spending hard because he believed the claims of an academic thesis that has long-since been disproved, by Reinhart and Rogoff, that suggested states should not allow their national debt to rise above 90 per cent of GDP.

The result is clear: He stalled the UK economy.

The only way Osborne was able to get the UK moving again was by creating a new housing bubble (which is yet to burst) and by enabling employers to make real-terms cuts in wages, in what amounts to a fiddle of the employment figures.

But tax receipts don’t lie. Despite claims that we have more people in work now than ever before in history, the Treasury is taking less money.

And Osborne’s idea for regeneration is to repeat the strategy that stalled the economy in the first place?

Incredible.

Torygraph double-talk would drag us back to primeval politics

Good riddance: Tony Blair (pictured on his return from his final Prime Minister's Questions on June 27, 2007) tried to marry left-wing social policy with neoliberal economics. This 'Third Way' failed when the right-wing economies of the western world fell apart in 2007-8.

Good riddance: Tony Blair (pictured on his return from his final Prime Minister’s Questions on June 27, 2007) tried to marry left-wing social policy with neoliberal economics. This ‘Third Way’ failed when the right-wing economies of the western world fell apart in 2007-8 [Image: Telegraph].

Here’s a lunatic for you: Janet Daley, writing in the Telegraph.

Contrary to all the evidence, her article Labour has forgotten all the lessons it learnt under Blair would have us believe that Old Labour is back with a vengeance, having discarded all the right-wing tricks it picked up under Tony Blair.

By now, most of you are probably sighing wistfully and murmuring “If only” at your screens. We all know it isn’t true but there’s an ideological agenda at work here – this Daley woman (a former Philosophy lecturer, if you can countenance such a background for such a person) needs to undermine Labour’s credibility. “After all the progress we appeared to be making towards a mature national discourse, we find ourselves back in the pubescent stage of political debate that brought the country to a standstill a generation ago,” she writes. Not unless her own politics drags us back there!

Unfortunately for her, she makes a proper pig’s ear of it. “Once again, we have a centrist government,” she claims. No, no we don’t. We have the most right-wing government any of us can remember. If that is her starting premise, this article can only go downhill – like an avalanche.

“Once again, those who govern are trying to find sensible solutions to the most important problems of the day – now it is welfare dependency and the delivery of public services, back then it was trades union law.” Those are not the most important problems of the day. The most important problems are income inequality and the rebalancing of the economy away from reliance on the financial sector that has let us down.

Welfare dependency only became an issue because the right-wing (Tory) government of Margaret Thatcher demanded it. As has by now been well-documented here and elsewhere, she was desperate to end the security afforded to the working class by full employment – it meant employees could demand higher wages from bosses who were greedily desperate to keep their profits for themselves. So she deliberately maimed British industry, creating a huge surge in unemployment (such that she had to hide the full extent of unemployment by putting many claimants on Incapacity Benefit instead). Her anti-union laws then made it increasingly difficult for workers’ representatives to negotiate meaningful wage settlements. Put together, these moves allowed executives to depress wages – but meant full employment could never happen again under a Conservative government.

(The current Tories are paying lip-service to it at the moment, but if you think zero-hours contracts, part-time and temporary work, and a surge in the self-employed sector that claims tax credits is full employment, you’re deluded.)

The Tory concern with delivering public services is easily addressed: They want to privatise everything and make the public pay through the nose, as individuals, for services they could previously receive for an equitable price by paying collectively.

You see, it’s all about greed with the Tories. They want more – you pay for it.

It seems Ms Daley has guessed that she might receive criticism for her suggestions, so she states, without a hint of humour: “Their efforts to talk sense – even to argue sensibly – are being bombarded by a cacophony of hysterical inanities from the ideological Left, some of it purely self-serving and the rest of it grotesquely naïve.”

How droll. We move on.

She tells us about “Tony Blair’s forcible remodelling of the Labour message to acknowledge the popular longing for aspiration and self-determination” as if she meant it. Tony Blair was a Third Way politician – he believed in left-wing social policies and right-wing, neoliberal economics. But right-wing economics failed spectacularly in 2007-8 when the banks – deregulated by Margaret Thatcher – proved they could not act responsibly on their own.

She suggests “the vindictive way it has been stamped out by the present-day Labour leadership” but can anybody see what she means by this?

Aspiration and self-determination have been brutally stamped out by the current Coalition government, with its homicidal policies to drive people away from its new social insecurity system and the previously-mentioned zero-hours, part-time, and temporary employment contracts that ensure employees have no chance of progression in their (short-term) jobs. There is more opportunity for aspiration and self-determination in remodelling businesses away from the corporate structure and into the form of worker-owned co-operatives, a long-cherished left-wing model of employment. But try getting that past a neoliberal executive!

Ms Daley’s article makes passing derogatory reference to the fall of Communism but in fact right-wing, neoliberal politics most closely resembles tribal Communism of the kind that was practised in the former Soviet Union, with the workers slaving for a pittance while the benefits are shared among the ruling class – who use state resources to support their corrupt regime. Does that seem familiar to you?

Ms Daley puts forward the belief that Bill Clinton was right to limit the amount of time anyone in the USA could claim state benefits, clearly indicating that this should be the next step for the Tories, here in the UK. “This precipitated an economic boom by pushing those forced off welfare into employment,” she gushes. Perhaps she hasn’t noticed the big question of the last week: A huge number of people have been forced off UK state benefits, and nobody knows where they are. They don’t have jobs because the jobs weren’t there for them. If there had been jobs for them, they would not have been forced off-benefit in the first place.

Then she gets her claws into Ed Miliband and Ed Balls: “Any rational discussion of the future of health care has become out of the question,” she says. Indeed – because the Conservative Party is hell-bent on selling it off, no matter how irrational this has been proved to be.

“Taxation is not necessary simply to raise funds to cover essential government functions, but to punish the undeserving whose social crime is to be more successful (or to have lived too long in a house that has rocketed in value) than many others,” she crows. No, it isn’t. Under Labour, taxation would cover government functions – it’s simply that those with the ability to pay would have to do so, rather than relying on the poor to do it for them.

The Mansion Tax should be seen in the context of the times: If the neoliberal right had been less keen on corruptly lining their own pockets and more keen on actually improving prosperity for all, there would be no need to find such ways of restoring the balance.

She moves on to poverty, claiming: “Scarcely anyone believes now that absolute poverty – the hunger and squalor that a significant proportion of Britons suffered within living memory – is a national problem. Food banks may have sprung into existence, but they are used largely as stop-gaps when benefit payments are delayed. Poverty is understood (even by its activists) to be relative. There is a more sophisticated understanding of the multiple social problems that produce real disadvantage: drug and alcohol dependency, broken families and, of course, welfare dependency.” By whom?

A significant proportion of Brits are suffering hunger and squalor now. That is why a significant proportion of Brits are being forced to suicide now – and why the DWP is doing all it can to cover up that fact now. Otherwise, why hide the number of ESA claimant deaths? Why shroud in secrecy the findings of investigations into claimant suicides?

Her discussion of food banks is astonishing – but should be best left to food bank organisers like the Trussell Trust to combat.

Finally, she moves to her claim that people are trapped by the benefits system. This whole article, it seems, is about defending Iain Duncan Smith! “So long as government was paying people to be poor, and penalising them for working through the tax system, the problem of relative poverty would never be cured.”

But that is a practice created by the Thatcher government and continued now – in fact, Duncan Smith’s DWP pushes benefit claimants right into the dirt with its punitive (and, some are now claiming, fraudulent) demands. Benefit claimants are now more helpless than ever. Their only real escape from the torment forced on them by a greedy government under the command of grasping industrialists is to drop out of the system altogether.

This article – together with its author – is a travesty; it is the incoherent, defending the inexcusable.

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What lurks within the brain of the Bolsover Beast?

Dennis Skinner - Parliamentary straight-talker.

Dennis Skinner – Parliamentary straight-talker.

Here’s an interesting criticism that was made following VP‘s article on the Charter for Budget Responsibility.

According to its author, this blog’s observations – that Labour was perfectly able to support the Charter as it was presented to Parliament, because nothing in it was opposed to Labour’s plans – were inaccurate because Dennis Skinner voted against it.

It seems clear that this person was suggesting that Mr Skinner, paragon of Labour values that he is, was voting against the line taken by the party’s leaders because it disagreed with his own – traditional – Labour principles.

This writer would not wish to presume knowledge of the mind of the Bolsover Beast. However, a simpler explanation does present itself.

Labour supported the Charter for Budget Responsibility because it is worded in such a way as to seek a balanced budget by the third year of a five-year period, without suggesting when this period would start or end. The Charter does not attempt to restrict any UK government on its methods of achieving this, so Ed Balls made it perfectly clear that Labour was happy to support what was being suggested.

The Conservative Party would have won the vote, with or without Labour’s support, thanks to the slavish help of its Liberal Democrat thralls. It has been avid to put forward the impression that the goal can only be achieved by imposing £30 billion of spending cuts on the poorest people in the nation, with no other measures being used. That is what will happen if a Conservative government is elected in May – and it seems there are those on the social media who want you to think Labour has subscribed to this.

Those people clearly did not listen to the Parliamentary debate, haven’t read the record of it in Hansard, haven’t read the Charter itself or haven’t seen the Vox Political articles (this last is excusable as VP is a very modest blog).

As was explained at length in the debate (and also on this blog), Labour plans to reduce the national deficit by reversing the tax cuts conferred on our richest citizens by the Conservatives and Liberal Democrats, and imposing a progressive taxation system to ensure that those best able to pay will do so; Labour does plan some spending cuts, but it also plans to do something that doesn’t seem to have occurred to the Conservatives: Stimulate economic growth.

There was, therefore, no reason for Labour not to support the Charter!

In fact, doing so was a way of mocking the Conservatives; rubbing Tory faces in the fact that they had tried to set a fiscal trap for Labour but had done so in such a poor way that it didn’t matter.

This is where, in this writer’s opinion, the Labour leadership and Mr Skinner diverged.

To a no-nonsense man like Dennis Skinner, this kind of game-playing is unnecessary – frivolous, perhaps. He may even see it as unduly making light of a situation that, for the electorate, is deadly serious. People are struggling because the Tories squeezed the economy; many have died.

He also knows that no Parliament can bind its successor; if Labour is elected in May, it can ignore the vote on the Charter for Budget Responsibility completely.

So it would be entirely reasonable for him to see this debate, and the vote that followed it, as nothing more than party political game-playing, and not for him.

It isn’t that most of the Labour Party supports continued economic austerity – that was disproved in the debate. It certainly isn’t that Labour will follow the Conservative plan of £30 billion in cuts – that was also disproved in the debate, and in the fact that a future Labour Parliament can ignore the decision in any case.

It seems far more likely that he simply didn’t want to play the Tories’ silly game.

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Conservative economic policy is drivel

Here’s a timely reminder from Alex Little that it seems the government is trying to fool us all – yet again.

He writes: A lot of the commentary around the recent Autumn Statement has been around how the plans to move the government’s budget from deficit to surplus over the next five years will involve cuts and a rolling back of the state to 1930s levels of expenditure.

This doesn’t make a lot of sense to me, however, because lower government spending as a proportion of GDP does not mean the deficit would be lower. You can just as easily have a five per cent deficit with the government spending 50 per cent of GDP as you could if they were only spending 35 per cent. The two just aren’t related. For example, Denmark’s government spends about 57 per cent of GDP, but has a budget deficit below one per cent. The US government on the other hand spends about 40 per cent of GDP, but has a deficit of over five per cent.

Absolutely correct. And in the case of the UK, lower government spending will necessarily lead to a lower GDP anyway. George Osborne won’t tell you, but restricting the amount of money circulating through the national economy makes it much, much harder to turn a profit, therefore taxes shrink, therefore government spending has to increase – not just in relation to a lowered GDP but to cover for what they imply for the British people.

It’s probably not possible (even if it were desirable to do so) for the UK to reduce its deficit for the foreseeable future. It has a large trade deficit because countries like Germany, China and Japan have based their economic strategy on exports, so to really cut its deficit, the UK would have to rely on the private sector (households and businesses) taking on more debt. This could work for a while, but as recent history shows us, it’s not really a sustainable economic model. We would probably crash again before the budget was balanced.

This is exactly what the government is doing, though. If nobody has seen the relevant graph, here it is:

141207financial-balances

As you can see, households go from a surplus of nearly five per cent of GDP during 2009-10 to debt of almost the same amount by 2019-20.

So what is this talk of massive cuts all about if it’s not about the deficit? It’s already transparent to many, but it seems to be about ideology. Proponents of a smaller state have given up trying to argue for this on its merits and are instead trying to frighten people into accepting cuts. Will this work? I think not because even if the public did accept further cuts, it’s not a strategy that’s likely to create a smaller state, rather one with worse public services with the cracks being covered by expensive sticking plaster solutions.

We’re already seeing worse public services everywhere – most notably (or indeed, not ably) last week with the revelations about the Border Force.

What are we to conclude?

Simply that the smaller state envisioned by George Osborne means worse public services, households deeply mired in debt, and a national deficit no nearer to being cleared.

Conservative economic policy is drivel.

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Great Coalition Failures: Privatisation

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Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

Don’t believe Cameron’s claims; there is no need for austerity – and there never was

Flinging around the bling: Someone should have told David Cameron that he shouldn't surround himself with gold when he's rubbing the proles' noses in unlimited austerity. The horse impression may also have been ill-judged.

Flinging around the bling: Someone should have told David Cameron that he shouldn’t surround himself with gold when he’s rubbing the proles’ noses in unlimited austerity. The horse impression may also have been ill-judged.

David Cameron must think we are a nation of fools.

He came into office by the back door after failing to convince a majority of British citizens that his pal Gideon’s George’s plan to starve the economy of money would magically refill the Treasury’s empty coffers. Three and a half years of relentless pro-Tory propaganda from the tabloids later, and he tells us – at an opulent banquet, no less! – that austerity is here to stay.

Isn’t that because his policies have been a disaster, then?

Yes. But a disaster for us, not him or his bankster/financier/corporate masters.

As this blog stated more than a year ago, “people need to understand that the Coalition government’s fiscal strategy isn’t about reducing the national deficit at all. If it was, we would not have had a big tax break for the richest in society as part of the last budget. It’s a strategy to axe public services, selling off to rich corporations any that might be capable of yielding a profit. George W Bush followed this policy in the United States a few years ago; it’s called ‘starving the beast’.”

Look this up on Wikipedia and you will find that it involves cutting taxes in order to deprive the government of revenue in a deliberate effort to force reduced spending. In the USA, we are told, “the short- and medium-term effect of the strategy has dramatically increased the United States’ public debt rather than reduce spending”.

Republican presidential candidate Fred Thompson’s tax-cutting plan was expected to be funded by lower government spending on social security and healthcare – and it is important that people here in the UK should see the similarities between that and the Coalition government’s privatisation of the National Health Service (we’re told the NHS is a registered company now), along with its many attacks on people who claim social security benefits.

We’ve had tax cuts for the very rich – the so-called “millionaire’s tax cut” that brought the top rate of Income Tax down from 50 per cent to 45 per cent. Corporation Tax is coming down from 28 per cent to 21 per cent while the corporations that write UK tax policy are using it to facilitate tax avoidance schemes. And the poorest workers in the country are being fooled into believing they are getting a good deal out of the policy of raising the tax threshold to £10,000 per year.

Let’s look at that. Nick Clegg wants to raise it still further, so that nobody is taxed on earnings below £10,500 per year, but this means the Treasury will be starved of £1 billion. That’s a lot of money. Meanwhile, the deficit – and the debt – keeps rising.

We’ve had almost no change in the national deficit, year on year. Michael Meacher’s latest blog entry tells us, “the UK debt overhang is growing, not reducing… the budget deficit is not going down appreciably either. In 2011 it was £118bn and in 2012 this had hardly fallen at all at £115bn. The 40% cut in public spending budgets and the £18bn cut in benefits and hence in consumer demand, plus the £40bn further intended cuts after 2015, has produced searing pain, yet next to [no] improvement in the national accounts which was supposed to be the whole aim of the exercise.”

It is also important to note that the effect of raising the tax threshold for poorer people has been completely negated by other changes in government benefits for people on low incomes, unemployment or incapacity support; in fact they are worse off.

It is against that background – tax cuts for the very rich and the corporates, “searing” pain for the poor and worsening national debt – that David Cameron announced, at the gold-trimmed Lord Mayor’s Banquet, “We are sticking to the task. But that doesn’t just mean making difficult decisions on public spending… it means building a leaner, more efficient state. We need to do more with less. Not just now, but permanently.”

At last he has admitted the point of the last three and a half pointless years. He has been starving the Treasury of the cash it needs to balance the books, and now he feels able to tell us that it isn’t going to happen unless public services are cut drastically.

He must be so happy.

Presumably he hasn’t realised that he has just told the British public that his policies, those of his political party and the Coalition of which it is a part, have been an abject disaster for the people of the United Kingdom.

He promised that he would get the deficit down; he failed.

He promised that the measures he took would be applied equally to everyone, from the highest-earners to the lowest; they weren’t.

Now he has promised to build a leaner, more efficient state, using examples from education and health, whose funding has been ring-fenced throughout his period in office; he is lying.

It is time, now, for serious-minded people to draw a line below the selfish policies of the last 30 years and start thinking about government for all the people once again.

When governments talk about making cuts, they’re not talking about help for the rich. Social or economic programmes, supported by taxes, are only ever put in place to level a playing field that would otherwise be tilted against the poor or disadvantaged. Removing such programmes means a less equal society; one that is more UNfair.

Remember that when Cameron and his cronies – especially people like Iain Duncan Smith and Esther McVey – talk about making Britain a fairer place to live and work.

Their words carry about as much weight as their leader’s 2010 election promises.