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Archive for March, 2012

Why the government is PIG ignorant on economics

06/03/2012, 02:12:07 PM

by Stuart Rodger

The world is transfixed by the Greek Tragedy unfolding before our eyes. It is increasingly clear for those on the left that what is being foisted upon the Greek people by the IMF, EU, and ECB as we speak is nothing less than a form of economic ‘shock therapy’: the labour markets must be ‘liberalised’, large public assets are to be sold off (at rock bottom prices), and banks are to be re-capitalised but maintain their “managerial independence”.

The Golden Dawn – Greece’s equivalent of the BNP – is on the verge of winning representation. In a recent Newsnight report, one unemployed, professional Greek citizen spoke of “civil war”. The place where democracy was born is turning out to be the place where democracy goes to die.

But far from being an irrelevant calamity at the other end of Europe, the economic crisis unfolding may have some important lessons for us – David Cameron et al, after all, routinely bring up the examples of Portugal, Ireland, and Greece as warning signals for what could happen to Britain should it not cut its way out of its deficit, with the price of debt spiralling up and growth stalling.

But a cursory reading of the news made me wonder if austerity is in fact exacerbating their problems, and is in fact the root cause of their problems in the first place.

So I decided to dig into the statistics to see if my theory was true. So, is David Cameron’s government PIG-ignorant? (see what I did there?). The following fiscal and growth statistics are all from the Eurostat and World Bank websites respectively, unless otherwise stated (measures of inflation have also been taken from the World Bank).

P is for Portugal. This country is important because it has been held up by David Cameron as his response to the Labour Party’s proposals to halve the deficit over the course of this parliament, rather than try to eliminate it entirely.

What policy did they follow? Initially, they increased spending moderately and the result was a moderate recovery. But in May 2011 they announced cuts to public spending and then, six months later, Portugal was reduced to “junk” status, with Eurostat estimating moderate contraction in 2011.

The lesson from Portugal is that spending brought recovery, and cuts promptly killed it off, worsening their debt problems. Crucially – punishment by the bond-markets came post-austerity. By citing Portugal, Cameron cites an economic experiment which proves him wrong.

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The Labour party’s double standards on all women short-lists

06/03/2012, 07:00:01 AM

by Atul Hatwal

Last week Ben Cobley wrote for Uncut about all women shortlists. It wasn’t a reactionary rant. He wasn’t dressed in a batman costume, sitting at the top of Big Ben when he wrote it. The tone was measured and the points reasoned.

While most comment, on both sides of the discussion was similarly nuanced, some of the responses were pavlovian, at best. Little effort to engage with what had been written, just a standard rehearsal of long established positions.

Yesterday, Luke Akehurst gave us one of the better versions of the conventional case for AWS over at Labour List.

In theory, I should support what Luke is saying.

I believe in all women shortlists. I see the logic of why AWS is needed – a second best solution in a third best world. And not enough has been achieved to achieve greater women’s representation. 81 female Labour MPs out of a parliamentary Labour party of 258 still leaves Labour nearly 50 MPs short of achieving equality.

But Luke and similar defenders of AWS lose me.

In his piece, Ben raises the rhetorical question – why only shortlists for women? Surely the same logic could be applied to other groups?

He’s right.

Ben is consistent in the way he draws his conclusions. All types of discrimination are wrong, therefore preferential shortlists should be ended.

If only the official party line, which backs positive action to tackle inequality, were similarly rigorous.

For of all those who manned (so to speak) the barricades in defence of AWS, equality seems to stop at gender. Zero discussion about ethnic minority or disabled communities. Equality is a principle worth fighting for, but not worth applying equally.

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How enterprise can empower young people to tackle youth unemployment

05/03/2012, 12:00:47 PM

by Lee Marsham

Youth unemployment is a national crisis that has been worsening steadily in the last few years and has increased to unprecedented levels in recent times.

With financial tightening well underway and no sign of it loosening any time soon, it is hard to see an obvious solution to the problem from within our current leaders in many of our sectors of work. Why?

Today we are faced with a generation of leaders who only know how to put programmes in place with government support and incentives, both of which are on shortening supply.

As of yet no one has adapted to the new austere times.

It seems that only young people themselves can solve youth unemployment. But in order to enable young people to achieve this, we need to capitalise on the business capacity that they can provide.

This can only be achieved through a radical reshaping of the current curriculum so it entrenches entrepreneurship into young people.

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Whip’s Notebook: Top down NHS reorganisations, Hulk Hogan and Oliver Letwin

05/03/2012, 07:00:22 AM

by Jon Ashworth

Last week the leader of the House of Commons and lord privy seal Sir George Young (who by the way reads my posts for Labour Uncut or at least his special advisers do and then lets him know if I say anything interesting) announced the likely date for the Queens Speech.

Get your diaries out because the next Gracious Address is set to be May 9^th.It didn’t come as much of a surprise to Labour MPs as Politics Home’s brilliant Paul Waugh revealed weeks ago. But MPs are always the last to hear these things anyway.

It means we will have had one of the longest parliamentary sessions on record even though we’ve hardly been scrutinising any legislation at all in the Commons in recent months. Instead we’ve been spending our time on innumerable backbench business debates with countless one line whips. All important stuff of course but rather odd when you consider we are elected to be legislators and we’ve not been doing much actual legislating.

Take the controversial Health and Social Care Bill. So despite it being one of the biggest issues in my postbag (actually inbox, nearly everything I get is by email but us MPs like to say “postbag”) and I suspect colleagues’ postbags (inbox) too, MPs have only had the opportunity to debate this monstrous bill in recent weeks because Andy Burnham tabled an opposition motion on the NHS Risk Register and asked what’s known as an urgent question on Nick Clegg’s health amendments as well last week.

So effectively Andrew Lansley in recent weeks has only come to the Commons to defend his policies because Labour has forced him to. Last month at health questions, genuine Lib Dem rebel Andrew George had a question on the order paper asking the Secretary of State whether he would withdraw the Health and Social Care Bill. Did Mr Lansley step up to answer it? No his loyal deputy Simon Burns was sent into the breach instead. “Frit” was the inevitable heckle from the more boisterous Labour MPs.

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All women shortlists are an insider’s charter

02/03/2012, 01:30:22 PM

by Ben Cobley

“White people love playing ‘divide & rule’ We should not play their game”, these words, tweeted by Diane Abbott, ignited a storm of accusations and denials of racism and opened a window into the complexities of identity politics.

While it is doubtful that many white people were properly offended by the tweet, it does expose Abbott’s assumption that black and white people should be divided, and that they have different (and opposing) interests.

The “divide and rule” agenda that Abbott talked about in fact applies more to her in this instance. She was clearly trying to draw a racial drawbridge between black and white people.

This is the sort of political philosophy that George W. Bush espoused when he said, “You are either with us or against us”; one group’s identity is defined opposite to the other – and if you do not share the dictates of your own group’s “leaders”, then you are letting your side down. Bim Adewunmi herself made a strong argument about this.

As it is highly unlikely Diane Abbott is a racist, how did she get into such a tangle?

Part of the answer surely lies in the way that certain curious, arcane attitudes are still widespread in liberal-left circles.

Abbott herself responded to the tweeting controversy by saying that she was talking about the politics of colonialism. But she clearly was not discussing history in her tweet, and that is where the colonialist worldview belongs – and where the anti-colonialist mentality will have to find a home sooner or later. It is hopelessly outdated in a country where the evidence of integration is all around us, not least in the many children and young adults of mixed race.

The unthinking identity politics of the liberal-left maintains and extends this anti-colonialist narrative though, by simplistically inverting the racist, sexist and ruling class ideologies of past times.

So it is that dark skin is favoured over light, female over male, while the possession of assets and money is deemed as something to be ashamed of.

This attitude is woven into Labour Party practices and procedures, especially when it comes to candidate selection.

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Posted in Grassroots | 15 Comments »

What is Labour’s message on public service reform?

02/03/2012, 08:00:03 AM

by Atul Hatwal

Step back for a moment. There’s lots going on in politics with the welfare and health reform debates raging, and it’s easy to lose sight of the big picture. Now, ask yourself this question :– what’s Labour’s narrative on the Tories?

What is the common thread that runs through Labour’s positions on these two issues; ties them together and explains to voters why the Tories are wrong.

In politics it’s easy to lurch from issue to issue and get sucked into the detail of the day to day battle. Like a primary school game of football there’s a scrum of politicos, journalists, bloggers and tweeters charging around the Westminster pitch en masse chasing the day’s story.

But out there in the real world, voters aren’t players in the micro-drama of news cycle politics. They aren’t interested in the minutiae that concerns the political class, life’s too short. They are spectators, with at best a passing interest in the game on the pitch.

The majority will have opinions on issues like health or welfare reform but what matters most is how a party’s various policies combine in a to give a clear idea of what they stand for, and equally importantly, why the other side are the wrong choice.

The big picture.

So back to the question, what’s Labour’s narrative to frame the Tory picture?

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Your chance to help stop legal loan sharking

01/03/2012, 12:00:57 PM

by Stella Creasy

Legal loan sharks are the Japanese knotweed in Britain’s consumer credit market. These invasive companies flourish by exploiting the demand for credit from families who find their incomes squeezed by the rising cost of living, wage freezes and unemployment and so are forced to borrow to make ends meet.

The government’s refusal to act against this industry means Britain is fertile ground for their loans at interest rates which can run to 16,000%. Yes you read that decimal point correctly.

In the payday loan world, offering money without credit checks, without advertising the costs and without any responsibility for the consequences is common place. When it comes to these companies, the impact of the extortionate rates they charge on the people they lend to comes second place to the profits they can make.

The chief executive of Wonga paid himself £1.6m last year, whilst Provident Financial posted a pre-tax profit of £162m in the year Britain went back into recession. As quickly as regulators try to address poor practices, another firm springs up ready to benefit from Britain’s dubious honour of being one of the few countries in the world where there is no limit on what you can charge for credit.

For nearly two years I’ve been calling for Britain to introduce total cost caps on the charges these firms can levy, putting a ceiling on the amount any loan could mount up to and giving consumers respite from the spiral of debt these firms can create. Twice now the government has voted against such measures, but as the evidence grows of the damage this is causing to millions of Britons they need us to not flinch from seeking every chance we can to make progress in championing the case for better regulation of these companies.

Such a moment of opportunity is upon us again.

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Workfare: fair work with a clear benefit

01/03/2012, 08:00:37 AM

by Peter Watt

Once again Labour has discovered its self-destructive sense of self-righteousness. It seems that sometimes we really can’t help ourselves. This time the issue is workfare where some in the party seem determined to reinforce the image of Labour as the party of the workshy.

But let’s get real. We need to start being honest and stop sending mixed messages. We have said that we are in favour of supporting people into work and of investing in supporting the long-term unemployed. We have said that we support reforming the welfare system so that welfare is not a lifestyle choice. And we have said that we must support hard working families who are struggling as costs go up. But then we go and spoil it by seeming to take pleasure in attacking companies who agree to take on the unemployed as part of a package of back to work support.

But “hang on”, I hear you say. Of course we oppose workfare. It makes people work for nothing. It compels people to work against their will. It allows bloated profit makers to exploit poor people as they don’t have to pay them for their work. And it forces people who would otherwise have to be paid out of a job. Quite frankly we might as well put the unemployed in orange boiler suits, spray “soap-dodger” on their back and make them dig ditches.

Except of course it isn’t true. (more…)

Posted in Uncut | 20 Comments »