Economy

Margaret Thatcher said 'I don't want equality, I want equality of opportunity'. This is fare enough. If there was a level playing field and equal opportunity it might be easier to justify the difference that exist in choice and discretion.

There are often good reasons for organisational structures and spread of roles and responsibilities within organisations and society. When you consider:

Most CEO's, Directors and senior managers have no idea how things are achieved in their organisations.
There is no evidence that any CEO makes a significant difference to the success of an organisation.
The City of London financial market, as with all financial markets, is a tax on society. They don't add value, they just take a slice of the pie.

There is little or no recognition that the people who add the most to the quality of life of the majority of people are on minimum wage. The real quetion is why don't they express dissatisfaction in the ballot box for this situation

A key idea for me, which helps me understand our situation, is the basic model under which capitalism operates. This is:

Limit choice and discretion
Socialise Risk and Privatise Profit
Market forces rule: There are no true Markets – Markets operate for the benefit of the provider not the user
British Economy is sustained by consumerism and debt that arises as a result of it
What is an Economy and do we live in a false economy - fouEconomy

I read once that Britain did not have an economy until the end of Empire. Similarly America didn’t have an economy until the end of slavery. When the financial stability of a country is based on something taken from someone else that you do not reward. When you profit from something without paying for it you are a thief.

Risk in this sense includes the standard definition of risk and the costs associated with mitigating that risk. There are examples of this everywhere:

The bank deposit protection system helped banking institutions mitigate the risk associated with their business practices.
InWork benefits allow business to reduce their cost of business, not pay their employees a living wage, make all tax payers contribute to their profits.
InWork benefits are a way for the government to give money to businesses that would be illegal under international trade agreements.
The minimum wage is considered a good thing. But, it too is an example where a market has failed.
National insurance payments and the NHS subsidise business. National insurance payments should be abolished and costs covered by general taxation. People who participate in ‘dangerous’ activities or businesses that put employees at increased risk should carry additional costs.
Zero Hours contract moves the risk and costs associated with effective business management and planning onto the people who can least afford it. Furthermore these people are not compensated for their strategic contribution to the business. They forego so many accepted benefits e.g. redundancy pay. They don’t receive any insurance premium or a proportion of the saved business costs that would accrue if the company employed effective management and business planning.

There is not a single market that is not subject to regulation. Markets subject to regulation are manipulated to improve the circumstances of the operator (e.g. Inter bank lending rate). The minimum wage and seeking to place restrictions on higher salaries demonstrated that the employment market does not exist. Any legislation that seeks to change market outcomes is a clear indication that the market has failed. All markets have failed.

Local government places limits on the amount they are prepared to pay for social care – forcing independent users to subsidise authorities choices.
The NHS places limits on what it is prepared to pay for medicines – Providers leave the ‘market’ forcing people to use back door providers and pay a premium. Pharmaceutical companies limit the application of drugs to restrict sales and maintain their prices.
Local Government Social Services exist to limit NHS costs and ensure that deaths associated with choices Local Government make to limit or reduce services because of financial restrictions imposed by Government.

I have to admit that I am from a privileged generation. I didn’t have to pay for my further education. I had a wide choice in employment. Worked for the same company in a range of jobs that I enjoyed and was well rewarded for over 30 years. I left with a pension that was linked to my final salary that will continue until I die.

There is a false argument being circulated that my and earlier generations have, and continues, to profit to the disadvantage of younger people and that action should be taken to correct this imbalance. E.g. pension age has been increased.

I don’t see the need for kindergardens, primary schools or most secondary schools. I am of an age where any child born today will make no contribution to my later life. Why should I contribute to their health, wellbeing or development. Make the breeders pay.

The ‘make younger peoples life better’ is a rational argument. But it is not a solution it is just another divisive smokescreen to divide and conquer. NeoCons work by floating rational arguments.

The British economy is being sustained by debt. Rather than some fake revival the Government has trebled borrowing even with all the austerity. Consumerism funded by personal debt has kept the retail economy buoyant. After all what is the point of saving, borrowing is cheap. Why put off getting what you want.

Low pay, stagnating pay rates combined with increased interest rates will shortly create a perfect storm that will reinforce and sustain modern ‘wage’ slavery.

Groups within society seeking privilege from difference:

Married couples allowance
Maternity leave
Paternity leave
Childcare allowances

These are all attempts to manipulate the electorate to gain votes and the job market to suppress or keep wages low.

The common agricultural policy is a subsidy on multiple levels:

Environmental protection
Land owners
Farmers
Food production
Food retailers
People who consume food
Some of these are subsidising lifestyle choices

There are three forms of taxation

Direct PAYE & National insurance.
Indirect - VAT, council tax etc. The average indirect tax is 5k. Which means that the low paid pay an equivalent tax of 40%
Stealth - e.g. the national lottery. Payments made predominantly by low paid. To support activity that benefits the middle to high paid. Include link to how lottery funding is distributed.

There is so much talk about 'scroungers' as some justification for the limits and controls placed on support funds. But this does not hold up:

HMRC fails to collect 5bn a year in taxes (<1%)
DWP claims that 3.5bn is paid as a result of fraud or error (2.1% (1.4% by error, 0.7% by fraud). Fraud = 1.2bn

There is a very simple way to:

Eliminate discrepancies in the labour market – Low pay, equal pay
Fix the housing market
Eliminate poverty
Eliminate homelessness.
Cut the UK government budget by a third
Significantly reduce public sector employment or create a pool that would allow effective change management to be introduced.

The scheme is the reverse of ‘trickle down’ economics. I will refer to it as ‘float up’ economics. The idea is very simple and does not cost any money. We take back the money that has been given to the banks and to chore up large corporations (56 Trillion ) and give 1 million GBP to every British citizen (64 Trillion.)

We could close the DWP taking away a third of the Governments budget (176 Billion)
The money will go straight back to the Banks so they will not need money.
A nominal interest rate will provide a replacement for any current pension and social security payments.
- All this income will be taxable increasing the tax base by
It will eliminate debt - People will pay off their mortgages, credit cards, student loans.
People who want to own their own home can pay for a house to be built.
Giving people choice and determination will allow them wider scope in terms of the way they occupy their time.

There would be a significant question. How would we get things done?

How much would you have to pay someone to collect rubbish if they have 1M in the bank?
Could you pay a woman less if she could choose not to do the job?

The solution to this is simple and straightforward. Everyone would have to undertake some form of social activity for 1 week a year. e.g. collect refuse.