Yesterday's papers were full of reports that Rishi Sunak's spending review, which will take place next Wednesday, will be framed by the worst ever public spending data, with the anticipated deficit for this year amounting to maybe £400 billion. This far exceeds the previous largest deficit of just over £150 billion in a year as a result of the 2008/09 global financial crisis.
Today we have reports that the consequence is that Sunak is planning public sector pay constraint to constrain the incomes of essential key workers to save £1 billion a year.
There can be little doubt that both stories are based on Treasury placed briefings. That is one reason why I ignored yesterday's claims. They were not news. But pay constraint is.
Let's ignore, for a moment, the mindset that suggests that constricting the income of all who work for you to save 0.25% of you projected deficit at a time when morale is already low is a sound management policy likely to encourage greater commitment and increased productivity.
Let's ignore too the fact that many of those will be asked to suffer this constraint have been subject to similar measures for the past decade.
And let's also ignore the fact that the austerity project of which they were a part has failed to deliver one any of its promises. Debt was not constrained: it grew. Deficits were cut, but not because of spending constraints, but because of rising tax revenues. Millions were forced nearer or into poverty. Local authority services were undermined at cost to the well-being of a great many. Private debts skyrocketed as efforts to constraint public debt were prioritised. Children went hungry.
Instead let's simply look at the facts.
The fact is that when a deficit of £400 billion has been created, at least in part, by reckless, uncontrolled and even corrupt spending the public sympathy for pay constraint on those civil servants who might be capable of delivering pubic services and procurement better than any the cowboys the government has engaged will be decidedly limited. What people want right now is decent, controlled, honest public service and not the wanton, cronyistic waste of this government.
The fact is that people also understand that public services have already been cut to the bone. They know the NHS is stretched to and beyond its limits. But they also can see that in education, the judicial system, in care services and so many others sectors. They know that penalising those trying to deliver those services is not going to work.
And what they also know, although most could not explain why, is that what is called borrowing has not crashed the economy. Instinctively, although again most could not explain why, they know that quantitative easing (QE) has a part to play in this.
What is more, they know that there is as yet no sign of inflation as a result and that the prospect of mass unemployment - which is their real fear - is going to constrain that risk for some time to come. Of course the release of lockdown may bring a temporary spending boom again, and Brexit will increase the inflation rate on some products, quite significantly. But they do not fear something most have never known, which is runaway inflation.
Instead they fear that there is no future for them to worry about. That there are, in other words, no jobs if they lose the one they have. They fear that their children will never get the chances that they think they deserve. They worry that they cannot rely on a government intent on cutting to provide support if they need it. They worry that the wealth divides in society will grow - or that those friends of politicians who can get pubic procurement contracts will take all the winnings and that everyone else - them included - will be left with little or nothing.
The ‘animal spirits' are muted in other words. The appetite for risk has gone. Those who can will save. Those who can't will live in fear.
And into all this the Chancellor injects the message ‘we're broke' and ‘we can;t afford to pay people a fair wage'. How does anyone think that's going to help?
Least of all, how is that going to help when it is not true?
The country is not broke. All that has happened is that £400 billion of new money has been created, costlessly, to keep the economy going. Most of that now sits in the accounts that the UK's banks and building societies maintain with the Bank of England earning 0.1% interest. That's not being broke at all. That simply assists the solvency of these institutions, which are not at the risk that they were in the last crisis as a consequence.
And there could be plenty more such balances if need be. It only takes a few keystrokes on a computer to create them, but what they mean is that the money required to keep the economy moving still exists at a time when private sector demand cannot make that happen.
And none of that money need be repaid. Indeed, it cannot be repaid, because it is impossible to repay money without using money. The repayment of this money cannot happen at the will of those who now have it as a consequence. Only government, as the monopoly creator of this money, can cancel it. That is their sole right. And why would they wish to do that if austerity is the consequence?
The answer should be obvious. They will do that because they want austerity. The dogma that still pervades so much UK political thinking - that the government is a burden and that its activities must be curtailed to allow the free spirit of the markets the chance to fly - pervades, still.
The room for markets to fly does, of course, exist right now. There is any amount of necessary spare capacity in the economy. And yet those sprits will not create value, because they have no idea how to, most especially when they know that in the last year the government has destroyed large amounts of financial capital. That may have been necessary, but it is also true. The desire to see more capital destroyed by Covid does not exist.
In which case the premise of the desire for austerity is false. The government is constraining nothing by its actions right now. All it is doing is enabling. That is its job. That is what it has to do. And that is what Sunak is clearly indicating that he will not do.
Why do we have to suffer this poverty of thinking?
Why do we have to suffer the false narratives that support it?
Why do we need to be punished yet again for what is fundamentally incorrect economics?
Because a few wish it to still be thought that their wealth is the result of their innate ability that proves them better than all others and that those others must only have a chance if they too can prove that, despite all odds, they are worthy of the riches that prove them part of an elite, and not just cronies of those in power.
The imposition of austerity is , then, a sado-masochistic ritual imposed by an elite to suggest that it is their ability that has afforded them them the power to impose this to motivate others to emulate their supposed achievements and so, as a consequence, this is for the good of the populace as a whole, or at least that small part who wish to join the elite, which is the only goal they think worth having.
Austerity is not just bad economics. It is the consequence of a corrupted psychology that seeks to impose economic pain for its own sake to satisfy the fantasies of a few.
That we so very clearly do not need austerity, or the fantasies of these few, should be apparent.
Preventing austerity is, unfortunately, harder. The narratives of those few who are in power are powerfully supported. We need to defeat their arguments.
That's why I will keep on writing.
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Are cracks appearing in the neoliberal wall? Reuters: ECB President Christine Lagarde on Thursday –
“As the sole issuer of euro-denominated central bank money, the Eurosystem will always be able to generate additional liquidity as needed,” Lagarde said in response to a question by an Italian member of the European Parliament.
So, by the definition, it will neither go bankrupt nor run out of money. In addition to that, any financial losses, should they occur, would not impair our ability to seek and maintain price stability.”
https://www.reuters.com/article/ecb-policy-bonds/ecb-cant-go-bankrupt-even-it-suffers-losses-idINKBN27Z12U
But the journalists do not hear
Richard – keep plugging away. There are light bulbs to be turned on.
I would again urge you and others to challenge the journalists with the question – name the years in which govt debt was repaid? I do think that journalists are part of the answer here – by raising just that question.
What we need is for those who can be heard, to begin thinking/questioning.
Don’t give up.
The positive, is that with Lagarde saying (admitting) this, journalists now have the opportunity to put Sunak or any other government minister on the spot by asking why things in the Eurozone should be different to the UK? Especially as the BoE have also admitted as much in the past. The “No Magic Money Tree” narrative has to be put to bed once and for all.
Not that the tame journos will ever do so, of course, but the opportunity is there.
Inflationeeering [sic] going on at the same time to justify the freeze as well. It just keeps getting worse.
The opening premise on the Radio 5 call in programme this morning – “we have borrowed £400 billion …and we have to find some way of paying it down”. All correspondents were then asked to place their comments within this context.
How is it possible for a “journalist” presenting a programme about debt not to know about QE and it’s consolidation impact upon total borrowing.
Everything you say in your excellent post, Richard, is pertinent and should form the basis of any meaningful discussion but in our current world it will not, not even in parliament.
Our media is not fit for purpose, there is no credible national dialogue.What do we do?
I wish I knew
They just do not want to hear
As a Life Member of the National Union of Journalists, I can tell you why: Most journalists are lazy and will take the easiest path. At the moment, that includes buying into the “household budget” fallacy. Not all journalists are like this, but when I heard even Jon Snow introduce Channel Four news along the lines of:
“Britain is going to spend £16billion on defence, but how will we pay for it?”,
I despair.
As a public sector worker I knew this was coming – despite the fact that I continued to do my job through the lockdown along with many others in the sector. I am involved in one of the projects to get homeless people off the streets this year and into the next for example which actually helps a Government policy to be fulfilled! Yet that does not seem to matter at all.
I think the sector should really give a big ‘Up yours’ to the Government. This pathetic little act Government puts on claiming it has not got the money has gone too far.
As I heard the announcement on the radio this morning I looked at my son over the breakfast table and I felt really sad for him, that his father had been stupid enough to work in the public sector and that this could very well impact on him and his sister’s life chances. All I could think was why did we bother to have children in a world that does not seem to want to sustain people’s lives by using money in paid work? I just feel that I have been made to feel that we have made some stupid decisions. It’s as though you have no control over your fate at all. That the dominate game in life seems to be to take as much money for oneself and to take it from others in the process.
Money – a utility for all – seems to generate in some a need to make it a utility for a minority – a rich minority – who wish to monopolise the money supply.
In another two/three years, I will definitely have gone beyond working one of the years since 2010 for free, in other words, starting my second free year of service for the Tories because that is how much I have lost because of austerity – and continue to lose along with others.
There maybe some here who just think I’m lucky in that I still have a job (and I am but on what basis of luck would you call that?), but taking money off working people and also taking money out of the economy is just so stupid. And when you have something like Universal Credit as well which seems to penalise people for not working hard enough……….!!?
And the politicians making these decisions – I ask you – I think that looking at their backgrounds they have no idea how normal live or are supposed to live.
The only thing to cling to is to see myself and others as victims of history really and that some day things will change but I keep no hope for myself at all. If I had my way I’d just want to get off this stupid planet and go somewhere else – just to get away from these oafs who totally mess up people’s lives.
What a predominantly stupid race of beings we are.
As another public sector worker, I share these sentiments entirely 🙁
Its just naked pandering to their base. A base that believes that ‘service to the public’ is to be despised and hence should be paid as little as possible, and best of all cut. Meanwhile, those on higher incomes who could and should pay more in tax are protected, as most of them expect the Tory party to represent their selfish interests.
Apart from which its just bad economics, as those on lesser incomes will spend what income they have into the economy – squeezing their incomes hurts the economy. Leaving the better off with their larger incomes tends just to lead to greater savings and inflation in the values of the usual assets.
Pilgrim Slight,
Sad to read your comment about how you feel. Be aware that you are doing an amazing job, and are a million times more human than the money grabbing Tories.
You have not made ‘stupid decisions’, the government do plenty of that.
I think the greedy will get their comeuppance one day, people won’t stand for more austerity being foisted on them after Brexit is done and dusted, and the effects of Covid really kick in. Not when the magic money tree very magically conjured quite a few £billions for some weapons.
Keep going, your kids must be very proud of you.
That’s very nice of you, thank you – cheered me up no end going into the office today.
Yes a very good post RIchard but I fear nothing will change.
Historically speaking the powers that be had better be careful and study their history.
One past event that came after a major epidemic (The Black Death) and subsequent austerity (crack down on freedoms and poll taxes) was followed by the Peasants Revolt. #WatTyler 1381 which came close to succeeding.
So who are the modern day wannabe Wat Tylers and Robert Ketts out there?
I expect we will see plenty of stories of ‘waste’ in public services appear in the lamestream media in the coming weeks and headlines such as ‘ YOUR MONEY IS SPENT ON THIS!!!!’ or something along those lines. More divide and conquer attempts from this corrupt, evil, incompetent government and their lackeys in the media.
I hope it fails miserably.
Craig
This article has appeared on the BBC website this morning and to my mind, reading between the lines, it is attempting to maintain a level of fear of debt without explaining how the QE facility is being used in conjunction with the issuing of gilts, etc.
The other point avoided is that most of this “debt” is in fact investments made by UK based institutions.
https://www.bbc.co.uk/news/business-50504151
I agree – it is all about fear
It is long past time for the blinkers to finally be taken off regarding The Groaniad.
It’s propaganda this morning is the fake narrative- right on cue:
‘economic and financial news’
* Introduction: UK borrowed £22.3bn last month, an October record
* UK borrowed £215bn since April — a record
* National debt now 100.8% of GDP, not seen since the early 1960s
* Rishi Sunak to put squeeze on public sector salaries’
BOLLOCKS UPON BOLLOCKS — they are in panic stations as the curtains have finally begun to fall and the puppet masters behind revealed!
The same blinkers about Starmer & co also need to go.
I’ve said something like this before here but…………………
………………even if you accept that God made the universe, the earth, the sea, the land, us and even the basic biological architecture for bugs like Covid-19, what we can say is that God did NOT create money. This is probably why Jesus had problems with it.
Money was /is created by mankind – however he/she chooses to create it. And how we can create it is through sovereign national Governments like ours in this country.
And yet, we still see money (or pretend to) as some sort of mystical, rare thing that sort of appears randomly from nowhere over which we have no control or that somehow if Government creates it has to give back even though it creates it!!! And that it can only be taken back, by taking it off the people who needed in the first place because of events beyond man’s control (such as Covid-19) or things he does not want to or couldn’t be arsed to control (rising sea levels and rains causing flooding because of global warming).
And not only that, a section of humanity thinks that it can play God with other peoples’ lives based on its ignorance and its desire to make sure that money remains distributed unfairly.
Man controls money because he made it: it is not an issue for God (although its immoral use by man arguably is). It is not an issue of luck or circumstance. Pretending that it is is a disgrace to the facts and to history and a testament to our indifference to others.
Money is tangible only when it is put to good use (decent infrastructure and services and jobs) so therefore it is part of the real physical world, yet we treat it like a fucking deity.
Austerity is the pinnacle of human stupidity in our age.
Government receipts (largely tax) are lower than government expenditure this year. It is the same as most years, certainly every year since 2001/2, although the difference is larger this year than most. The question is, if we are borrowing, who are we borrowing from, on what terms, when do they need to be repaid, and is the position sustainable? (The answers appear to be “from ourselves, through the Bank of England”, “cheaply, essentially for free”, “in reality, never” and “yes”.)
And then priorities: do we spend money on remunerating public sector employees adequately, or on weapons and faulty PPE and freeports. Which is more likely to generate increased economic activity – putting money in the pockets of individuals who spend it, or buying tanks and bombs.
https://twitter.com/richardjmurphy/status/1329800259476856839?s=21
Inspired by you
Andrew,
I really like the way you wish to tackle this; with pertinent, unavoidable questions. Keep asking these questions; and repeat until some very specific, precise answers are provided; then we have the issue ‘in the open’ and on reasonably level ground.
I’m in no doubt that these are great questions – but they have yet to be repeated out in the real world – I’ve just been listening to PM – God help us ( I wish I hadn’t).
When these questions get asked on BBC News, Channel 4 and the rest of ITV news, on Newsnight and even that idiot Peston asks them, then we might be getting somewhere.
Government policy on continuing austerity because they think that debt repayment is their only moral obligation is pure hypocrisy on their part. There is no hesitation in a massive increase in military expenditure on weapons of destruction and mass destruction but hesitation as to whether our own children or grandchildren should go hungry at half terms or winter and summer breaks. No hesitation about splashing out on enormous white elephant over cost running projects like HS2, Hinkley and Sizewell Cs and Trident. The question of where does the money come from for this waste never occurs to our journalists who worry about how we are going to pay for useful services such as health, education, social care, overseas aid let alone climate change.
I work in an HEI, Pilgrim, and it’s exactly the same for me.
Both Richard and yourself have nailed it. Totally – I come to this blog for a little sanity each day, otherwise I think l would feel so alientated by the MSM narrative that I think I might completely lose the plot. So do please keep writing and contributing all of you (well, maybe not the trolls)
TAAB
Thank you.
I think I’ve nailed the anger but Richard, John and Andrew are right to zoom in on the real line of enquiry. Let’s hope something comes of that?
Like you PSR, I’m in the public sector; HMRC in fact. The HMRC that shifted to nearly total home based working in a few days in March (hats off to our IT people), set up CJRS and SEISS, which, in contrast to the Track and Trace system run by the private sector, actually work, while at the same time carrying on, if possible, our regular compliance work. (I work in VAT compliance). In fact, Sunak himself was singing our praises.
And our reward? To have yet more austerity dumped on us. And like you PSR, I’m utterly unsurprised by this latest bit of treachery from the government. In the case of HMRC, this is being done just at a time when they are desperate to keep people because of the workload we’ll be having in the foreseeable future. One of the consequences of which is that they have readily agreed to people changing their terms of work if that meant they would stay on in HMRC. In my case, that means I’m now a homeworker wfh 100% except for visits to traders and possibly, team meetings.
However, in my case, there’s a twist in the tail. Along with all the other horrors of this year, both my parents died, within a two week period (not due to Covid thank God). Due to the fact their house is in SE London, and my Dad’s ability to save and invest, the estate is worth well over £1 million. So, even split 50:50 with my sister, I will be inheriting several hundred thousand pounds.
Lucky old me, eh? Once the probate work is done and I’ve talked to a Financial advisor, I’ll know whether I can afford to give up work. I have a very strong feeling that’s what I’ll be doing. That’ll be my way of giving this wretched government a big ‘Up Yours’.
So much for ‘key workers’, eh PSR? It’s all right for billions to be wasted on contracts handed to Tory party donors and ministers’ friends, but decent pay for those doing the work of keeping the economy going can’t be afforded. Strangely, I expect there’ll be money for MP’s pay rises though.
sorry for your loss, but glad you’ll be escaping and not having to put up with “contract reform” (as clearly the “pay” bit is no more after today’s announcement)
Oh yes MG, you said it. I can get out, though through no effort of my own. Just the luck of having clever parents who bought a typical semi in a London suburb over 40 years ago for £25k, which has increased in value over 30 times due to the crazy economics of the UK, putting so much of its wealth in the SE and in housing.
Well good luck SOTD – and please do pay your taxes, there’s good chap.
Nice to know someone will break free of the whipping post known as the public sector.
Relief for me only exists at the end of a rope or a sharp object in the foreseeable future.
Thanks PSR. The probate people are paying off the IHT right now, so I can safely say I’ve paid my taxes!
It would serve these wretches, and Tory voters in general right, if this proves the final straw and they get a mass exodus of civil servants, teachers, council workers, and so on.
Let’s see where their regard for ‘key workers’ is then. So much for all the clapping bollocks eh? I feel for you, I really do. The only glimmer of hope I can see is people like Richard constantly banging the drum for MMT.
I certainly don’t see it in our useless politics. I can sum up the two main parties thus:
Tories – corrupt and incompetent
Labour – useless and treachorous.
Thanks
I am 2,000 words into an MMT thread for Twitter and here – a semi-relaxed Saturday….
Richard, you have just written one of the best and most powerful parliamentary speeches I have ever read. And the tragedy is , we will never hear it in parliament from any MP. But I hope you do send it to Starmer and Dodds. You never know.
I was aware it felt a bit speech like when I finished it
Very oddly it had no revisions, at all
And only about 5 typos – very low for me
I still think there needs to be a campaign to raise funds to send prominent journalists copies of Richards ‘The Joy of Tax’ and Stephanie Keltons ‘The Deficit Myth’. Or am I being wildly optimistic thinking that they would ever take time to read them?
I’m doing my small bit by asking a few journalists I know what they think of MMT. It will be interesting to see their replies.
I had an hour long discussion with an MP today who had read The Deficit Myth and wanted to discuss its application, in some detail
I cannot share names
But this has happened several times now
Well that sounds like things are moving in the right direction. Well done.
Fantastic piece Richard. As Jeff L says, one wishes one could hear it from a major politician.
Today’s Tories not only want to shrink the state (so that in their minds they can pay less in tax), they actively despise those who ‘serve the public’. Servicing one’s own selfish interests is all that matters. It’s a truly Randian view of the world. Which of course is just what a number of of the Cabinet proudly declare themselves to be.
Thanks
As soon as Sunak capitulated and Javid was out this was the end goal.
But I’m sure they’d have got there with Javid anyway.
A return to crushing the proles into submission whilst stealing the wealth of the nation.
Free market capitalism for the poor and socialism for the rich.
I read a post the other day with someone musing that climate change is triggering this behavior because this is the last chance saloon for the elite to cream off the top before it’s all over.
Austerity, brexit, covid and the blatant corruption is going to tank the country.
It is hopeful if politicians are starting to wake up.
But I can’t see Starner leading a progressive charge!
I think there has to be a new voice, a new party for progressive politics.
Anti-fascist, rational, scientific and compassionate.
Something with substance that reporters can relay to the general public.
Without a shift in narrative we are tied to this sinking, stinking ship of cronyism, corruption and illegitimate dogma.
Zachariah
They are not perfect, but if I was in England, and setting up a new political party, I would look toward the SNP for my blueprint. As I say not perfect, but their general ethos is sound, though anything they do for the actual people is of course negated by the media, at the behest of the EngGov, who also do install people at the top of the party, advisers, hmm, which is not so sound.
Government should work for the people not the othercway around.
I did read years ago, that it is almost impossible to set up a new political party in England of any significance, due to all sorts of barriers blocking the way.
Farage succeeded though, but he was no doubt facilitated for a particular agenda.
Interesting article by Iain MacWhirter …a journalist whom I used to respect but don’t much any more. Here he takes a few snidey pot shots at you and a couple of other people …but then the whole tone of the rest of his article is admitting that, erm em, you might actually be right about MMT. (At least for now, so he concludes.) Bizarre.
https://iainmacwhirter.wordpress.com/2020/11/21/how-governments-learned-to-stop-worrying-and-love-debt-at-least-for-now/
Jan
Thanks. I had not seen this.
I have tweeted to him saying he can’t win an argument by making up false claims about MMT. I hope he responds
Richard
Just heard the impeccably ignorant Jess Phillips on R4 talking about Government debt and a ‘need to have an honest conversation with tax payers’.
Apparently this Labour MP believes exactly what her supposed sworn enemy Mrs Thatcher believed in that there is no such thing as Government money.
Witless. Hopeless. Useless.
But no matter eh Jess, you can still turn on the water works in Parliament for those you say care about whilst choosing to believe in something that is just not true and actually contributes to the pain you say you want to stop.
It’s incredible to believe that this person is paid £80k a year to do that.
Agreed
OK – i’ll stick up for Jess whose heart I think is 100% in the right place. And yes I’ve met and chatted with her, read her books and liked her. She has a track record of real work as opposed to the posturing and ideology of many of her critics. Been there and done it rather than read it in a book or been on the march.
Id suggest that she is no different to the overwhelming majority of the population and politicians in their understanding of macro economics and the prevailing narrative. So we just need to get out there and explain it to a lot more people. Instead of just assuming that those who who dont get MMT are all somehow all in the same boat.
Right now the left are little better than the right in their understanding of macroeconomics.
Jess Philips though is a paid public servant, very well paid at that, in fact awarded a very very generous pay rise just recently. She and her fellow MPs are paid to know the basics of economics, how difficult is that? I would not give her any slack, she should know what she is talking about, if not get someone else with the knowledge and facts to explain it properly.
MPs take a heck of a lot from the public purse, and it’s time the general public started demanding they bloody well work for it!
I too would cut Jess Phillips some slack – most MPs do not understand economics in the way that some do on this forum. As someone who has come round to MMT in the past year, I can attest to how much your view changes once you accept the realities of how this money thing actually works.
The penny drops, so to speak.
What is not needed is for e.g. an MP to say what one commentator said some time ago, broadly to the effect that government can spend what it likes and if it all goes wrong, just renege on your debt like Argentina. He had been making sense right up to that throwaway comment.
Keep up the good work Richard. It is very hard for this message (MMT) to get out because it threatens so many interests; the bond raters, the private sector, the wealthy who see the power of the Government as a threat to their own influence. Despite our media being called “liberal”, “left wing” it is not as it keeps new thinking that may benefit ordinary people under wraps. As for those under appreciated members of the public service commenting here I recently read a book by Michael Lewis ( he wrote The Big Short” about the financial crisis) called The Fifth Risk about how US citizens and I think its largely true of citizens in all countries who do not understand or appreciate all the things Government does because public sector workers are not allowed to publicize their successes so only get attention when things go wrong, feeding into the image of Gov. as being incompetent etc. The book actually focusses on the transition period between Obama leaving the White house and the incoming Trump “administration” and how most new appointees had no clue or appreciation of what Gov does; and this is a risk. While I think we are all “Trumped” out it is an interesting read to discover the amazing people who work for Gov. and what they do and how often their work goes unrecognized. A real example of this is the announcement just this week of a Covid vaccine attributed to Pfizer or Moderna but actually built upon past work by public bodies (explained by an article “Government Funded Scientists laid Groundwork for billion dollar vaccines” by Jerry Lynn Scofield). The same book mentioned an awards program for outstanding achievements by public sector workers, which unlike the Oscars no-one has ever heard of…The Sam Heyman awards for Government Excellence or “The Sammies” We need something like that to highlight the good that Gov. does and the often unsung public sector work that goes on behind the so called genius of private sector that gets all the kudos! (See also maria Mazzacuto “The Entrepreneurial State ” and another one I just found by Linda McQuiag called the “Sport and Prey of Capitalists” that refers mostly to the Canadian habit of handing over successful public institutions to the private sector but is widely applicable to the neoliberal habit of denigrating public services and those who provide them in favor of the capitalist model. So keep on plugging everyone!!
“There’s one chart that predicts our future, and no, it’s not related to Covid–it’s related to capital, specifically the concentration of capital and power in the hands of the few at the expense of the many”
http://charleshughsmith.blogspot.com/2020/11/the-one-chart-that-predicts-our-future.html
Austerity was never about economics: It was always about increasing the power and wealth of the few.
A great post Liz and so true. Here’s a story…………….
I work in housing development and the city where I work my department had to purchase a terraced house from an owner who had mental health problems. The house was basically falling down and at risk of bringing down the private houses either side of it. As the owner lacked mental capacity, we couldn’t even enter into a contract with him – it took ages to sort out. Anyhow, with a bit of Government grant we saved it and literally turned a pig’s ear into a silk purse – made it stand up structurally and completely updated it and it is now being let as quality affordable housing.
I took pictures of before and after as I thought we’d be happy to tell people what we did – basically saved two private homes from serious damage and brought a much needed home back into use. But no – now we are scared of facing questions about how much it cost!!!! So we’ll keep it out of the limelight – because of course of the old lie – IT’s PUBLIC MONEY – because of ‘the people’ may disagree about how we’ve spent it (i.e. – we’ve not spent it on them or people that they like or approve of).
What the public sector did here was basically bail out a private sector failure. And we do it all the time by using Compulsory Purchase Orders to purchase unfit properties off crappy private landlords who rent out dangerous properties after they have been issued with improvement notices and there has been a failure to act – we don’t even tell people about that because it looks like the ‘big Council’ going after ‘the little man trying to stand on his own two feet’ (the bad landlord) – a familiar Randian trope.
Thanks.
Thanks for that information PSR. Not an unusual situation this, the public sector having to clean up the mess left by a malfunctioning private sector. The state bailing out the banks in 2008, councils bringing in their own people with local knowledge to compensate for the Track and Trace system run by the useless Harding, appointed solely because of her personal links to other Tories.
No problem throwing money from the ‘non-existent’ money tree at her though, is there? Or the numerous PPE contracts obtained by Tory donors and friends of ministers.