Three whopping great Tory lies

I've been saying all along on this blog that Labour will win the next general election and I still subscribe to that view, although its beginning to look like Labour's majority could be quite small. If the Tories do win - or do a lot better than I expect - it will be in no small part due to the successful misleading propaganda that they have been churning out since May 2010. This is a government built on misleading statements and the chief protagonists have been David Cameron and George Osborne. Cameron is a perfect front man for a hard-right party like the Conservatives, and he effortlessly projects a sort of common-sense-bloke-next-door persona which seems to chime with a large section of the electorate. However, David Cameron has almost nothing in common with the overwhelming majority of the electorate, he is definitely not the bloke next door. He is a millionaire who inherited wealth from his tax dodging father and has never done a proper job in his life - I mean that in the sense of having had to go out and get a job in a competitive job market like the rest of us - see my previous post on him. The same is true of Gideon 'George' Osborne, though Osborne is much less smooth than Cameron and not much liked by the electorate.

There are the three great Tory whoppers that I would like to feature in this post because they are likely to have a significant impact on the election:

1. Labour was responsible for the economic crisis: the Tories were quick off the mark with this one. They used it during the election campaign and almost as soon as the Coalition was formed the mantra of Labour's economic incompetence and responsibility for the crisis was repeated endlessly while Labour, shell-shocked by the election result, footled around with its leadership campaign. By the time Milliband was elected the electorate had largely bought it. Of course its not true. How could even Labour be responsible for what was a global economic crisis? Of course they had some culpability in crawling to the banks with 'light-touch' regulation but responsible - no. In fact, under Labour's response to the global economic crisis the UK's economy was doing better than when Osborne subsequently got his hands on it.

2. Austerity is necessary: this is George Osborne's specialty. After the election Osborne tore out of the starting blocks to embed austerity as quickly as possible - for political reasons. His 'emergency budget' in June 2010 cut £81 billion from public spending, doing real harm to the poorest and most vulnerable people in the UK. Osborne's great claim was that the UK had 'maxed out its credit card' but he knows that UK debt is not the same as credit card debt. Analogies about government borrowing and household budgets and people's debt and spending on credit cards are misleading as economists know quite well. Nonetheless, a combination of relentless repetition about UK debt and the 'structural deficit' and Labour's spineless non-response have embedded this idea in the minds of many in the electorate. Austerity isn't a necessity its a political choice, undertaken to make the 99% pay for the failures of the 1%. It is classwar. The 2010 Green Party manifesto showed how the UK could re-vitalise our economy and pay down the deficit without austerity. 

3. The NHS is safe with us: the 2010 Tory manifesto claimed there would be 'no top down reorganisation of the NHS' and Cameron claimed it would be 'safe' with them. And what did the Coalition do as soon as it got into power? It introduced the Health and Social Care Bill which was intended to break-up and privatise the NHS. Lets be clear a privatised NHS is no longer the NHS. The NHS has not been protected from cuts as has been claimed by the government and now the NHS is in crisis, just like it was when the Tories were last in power in the 1980s and 1990s.

Of the three whoppers it seems the last one is the least likely to be believed by voters, but the first two are likely to have the greatest impact overall. Could this be the most dishonest government ever?

Neoliberal Labour fail the social justice test - again!

Neoliberal Labour are at it again. This time pandering to the Coalition's class-war driven attack on the unemployed with their own version of Workfare. Labour's new plan - or should that be New Labour's plan? - announced by Ed Balls, is that people who are unemployed for more than two years would be forced to work in some sort of government backed scheme for at least 6 months. And Labour have repeated the Tory mantra that work must pay more than benefits.

So what is wrong with this you may ask? Well there is plenty wrong with it. For a start, unemployment is a failure of Labour's beloved 'free' market to provide meaningful jobs for people. But this can't be admitted, so the unemployed must be blamed for their own predicament, including the 660,000 public sector workers who have lost their jobs under the Coalition. In 'free' market la la land you must always blame the victims never the culprits - i.e. the banks, the tax dodging corporations and the tame politicians who support them, the very people who created the economic crisis we are now all paying for. Secondly, if people on benefits get more money than those in work that tells us the simple truth that those in work are not earning enough. Under the previous New Labour government, Gordon Brown's tax credits for working families simply subsidised cheap labour for the tax dodging corporations. It was a form of corporate welfarism. Thirdly, the unemployed and low paid are exactly the sort of people who ought to expect and allegedly 'progressive' party like Labour to give them some support in difficult times. Instead of this reactionary nonsense, Labour should be committed to full employment, as it used to be, and guarantee every unemployed person a meaningful job. But Labour doesn't have the 'Balls' to do that.

What is the answer? At the last general election in its 2010 manifesto, the Green Party came up with policies to halve the deficit and create one million new jobs in the green sector - in areas like home insulation - to tackle the crisis in the economy and fight climate change. This carefully costed programme, paid for by shelving wasteful and unnecessary projects like Trident, and taxes on environmental pollution and the rich, would have put the UK in a much stronger position than it is now. There would not have been swinging cuts in the public sector and no privatisation of the NHS. There is a real alternative of hope to the despair and destruction that neoliberal austerity is wreaking on the people of Europe and the UK. We can bring about positive change if people vote for us. Do you want to be part of a positive future? Then come and join us.

Bringing back Laws shows the desperation of a failing Coalition

Austerity isn't working. George Osborne's economic policy is in ruins, and he is now a lame-duck Chancellor. Last month the government had to borrow £600 million more, so much for debt reduction. Panic is beginning to grip a failing and fractured government. So it has now been signalled, that David Cameron will re-arrange the deckchairs on the titanic - better known as a cabinet re-shuffle. One of the highlights, we are told, is the expected return to government of the darling of the neoliberal right, David Laws. Laws, who is a millionaire, managed only 17 days in the original Coalition cabinet before having to resign due to a dodgy expenses claim of £40,000, more than many people earn in a two year period.

David Laws

As you might expect, the 'free' market fundamentalists in the Coalition will be delighted by the return of Laws who is a fervent tax-cutter and privatiser. Laws recently called for deeper tax cuts, and the shrinking of the state, in a continuation of the failed neoliberal market 'economic' policies which caused the so-called deficit crisis (the deficit is not really a crisis and is being used as an excuse to destroy welfare) in the first place. All this shows the desperation of a Coalition government which has nowhere to go, the moral bankruptcy of allowing Laws to return, and the growing realisation for Cameron that he will be a one term premier unless he can salvage his sinking ship.

The problem for the market fundamentalists dominating the Coalition is that because they don't believe the state should plan or intervene, by creating jobs for example, they have no levers to pull to revive the economy. Interest rates cannot be reduced, quantitative easing has failed, there is no room for tax cuts, and the economy is still, at best, stagnating. That is why we have suddenly begun to hear calls for big infrastructure projects such as a third runway at Heathrow and a projected £30 billion Severn barrage. Predictably, these are the wrong projects, and even if adopted now, they will come too late to have any effect before the next election. It would have been better for Cameron and Osborne  to begin those projects soon after the 2010 election.

Of course, there are some very real options to get people working and rebuild our economy and you can find them in the Green Party manifesto. But those green solutions are beyond the blinkered ideology of the government. One of the government's key priorities ought to be the building of hundreds of thousands of social homes to boost the economy, create thousands of jobs, and help alleviate our appalling housing crisis, the origins of which lie in the Thatcher government's infamous 'right to buy' policy of 1979. But there is no chance of the government adopting such a common-sense solution. Trapped by their own fundamentalist belief system, government ministers are like the lunatics doomed to repeat the same failed policies over and over again, and each time expecting a different result.

A Green vote is a vote against austerity!

The savage cuts of £81 billion imposed by George Osborne in the Coalition's so-called emergency budget in 2010 were designed to make the ordinary people of the UK pay for the sovereign debt crisis which resulted from the financial crisis caused by banks. These are the very same banks that had already been bailed out to the extent of £1.2 trillion by the UK taxpayer. At the time, Osborne and David Cameron cynically claimed that "were all in it together" but they knew that the cuts would fall disproportionately on the low paid, unemployed and disabled, and would hit women particularly hard. The savage cuts imposed by the Coalition are unprecedented in the history of the UK and are driven by ideology, not by necessity, as has been claimed. The government cuts will lead to 700,000 job losses in the public sector, causing further hardship to those already bearing the brunt of the cuts and will probably lead to economic stagnation in the UK for at least a decade.




In our 2010 manifesto the Green Party provided the UK with a radical and positive economic alternative to this savage austerity programme. We planned to halve the deficit in five years without cutting public sector services or jobs and invest £44 billion in creating one million green jobs, and our programme, based on cutting unnecessary government projects like Trident, environmental taxes to cut pollution, and taxing the better off, was fully costed. This approach, if adopted, would have mitigated the worst effects of the financial crisis and created hope for millions in the UK.

The Coalition government have cynically left local councils to implement much of their cuts and councillors are left in a position where they will struggle to support vital local services and protect jobs. Despite this Green Party councillors and candidates in the forthcoming election are determined to do all they can to maintain the local services that people need. In Brighton and Hove, our first Green council is the the most democratic and open in the borough's history and has introduced the living wage for council staff, and is fighting to protect the victims of the cuts. If you want change there is a real alternative to the despair and destruction being wreaked on communities in the UK. On 3 May, vote Green!

The benefits cap is an attack on the victims of austerity

You have to hand it to the political right. They are the real masters of the politics of divide and rule. Recently they have been busy dividing public sector workers and private sector workers over pay and pensions. Now they are dividing those in work against the unemployed over the benefits cap. Cleverly, they have come up with, as they always do, a simple ruse to get the support of those in work, for their attack on the victims of austerity - the so-called benefit scroungers. This is typically simplistic right-wing distortion of the truth and is very effective.

In case you want to jump to any conclusions about my views - I think that people should find work if they can. But the whole issue of work is far more complicated than the media would have you believe.The problem for people in the UK is that they live in a capitalist economic system which creates unemployment, which increases in time of inevitable periodic crises, thus preventing the unemployed  from getting meaningful work. There are three important issues which those who support a benefits cap don't want to discuss, they are;

1. If benefits exceed the average wage, that clearly means the average wage is too low. Low pay has been a chronic problem in the UK for many years. The introduction of a minimum wage under the Labour government helped to redress this problem, but the minimum wage is still not a living wage. If workers were realistically rewarded for the work they do this wouldn't be a problem.

2. Unemployment; the real issue which underlies this whole debate about benefit caps is the unemployment caused by the Coalition's austerity programme. The capitalist economic system has always produced unemployment. It was Marx who identified this problem as the 'reserve army of labour'. We need a government which has the guts and gumption to create jobs, rather than destroying them through austerity. In the Green Party, we explained how this could be done in our manifesto with a call for a Green New Deal to create one million jobs.

3. Housing benefits payments at £20 billion wouldn't be so great if we had enough social housing with controlled rents instead of reliance on the rip-off private sector. Over the past 30 years successive governments have failed to provide social housing on anywhere near the scale needed. The UK has a chronic shortage of homes with many of the poor living in substandard housing because of the market ideology pursued by New Labour and the Tories. Promises to build new homes simply haven't been met.

New Labour and the Tories have sought to hide their neoliberal economic failures by blaming the victims, and dividing the nation, through bashing the unemployed, and now, a benefit cap. What we need is real economic and social change to create a society where jobs are the priority, and hard working families receive the real benefits of the wealth they create. The only political party in the UK which has a costed and coherent programme to bring about that change within the context of the growing threat of climate change is the Green Party. Come and join us in making that change happen.

Plan B endorses the Green Party's measures to revive our economy

On the 6th of October 2011, Green Party leader, Caroline Lucas called for a programme of green quantitative easing (QE) to revive our economy at a time when the Bank of England was announcing a plan to waste £75 billion on a QE programme of handing over money to banks. I blogged about this on the 10th October, and talked about how the Green Party had proposed green QE measures as part of a Green New Deal approach in our 2010 manifesto. The measures include a massive programme to create one million green jobs and a citizens pension to help lift pensioners out of poverty.

The Bank of England's QE plan is not the answer

In today's Observer there is a call by 'leading' economists for the government to adopt a Plan B approach which would include many of the measures we have been talking about for the past few years. Bizarrely enough, in the article, Tory MP Jesse Norman is given the credit for getting the Plan B ball rolling by stimulating Neal Lawson of Compass to act. According to the Observer:

For all the constant griping about the government's policies, and a despondency over the perceived flaws of Osborne's austerity prescription, Neal Lawson, chair of the centre-left pressure group Compass, had to admit to himself that they were nowhere.

"When Jesse said that I just thought, yep, we need to stop just talking about this stuff and get down to sorting out an alternative plan," Lawson said.

Of course if Lawson had bothered to pick up our manifesto he wouldn't have needed Norman or his group of economists to formulate his Plan B. But the good news is that he and his centre-left colleagues are now beginning to catch up with Green Party policy.

Such are the perils of being a minority party. It would have been nice if a few journalists could have been bothered to listen to what we were saying at the last election, and also to Caroline's recent views on green QE. At least now it is beginning to look like the non-green left is moving in the right direction. If we can work together with others on the left, the anti-cuts groups, such as UKuncut,  and the trade unions we may be able to put enough pressure on this government to make it change course. The November 30th pensions action is the next big event, lets help to make that a day of action to stop the government's austerity programme and bring about positive change.

Quantitative easing, and how to help to avoid the big crash

Just after the Tory party conference, which ended last week, we were told that the Bank of England had introduced a new round of quantitative easing (QE) in the UK  to the tune of £75 billion. This is throwing bad la la money after bad.The bad is the £200 billion already wasted on QE to little effect on the UK economy so far, except perhaps as an increase in inflation. The la la, is that it is made up money which comes from nowhere, so it might as well come to you and me, and I'm not joking, because if it did, that really would lift off our economy. But we all know that is not going to happen. The iron law of capitalism is - "To those that have shall be given".

What we have with this economic crisis is the perfect storm, which was described by Governor of the Bank of England, Mervyn King, in the link above, as:

"There is not enough money. That may seem unfamiliar to people." [he told Sky News.] "But that's because this is the most serious financial crisis at least since the 1930s, if not ever."

All of which makes our current situation potentially worse than the Great  Depression. This is because; we still have a huge amount of debt in the system; we have nation states (like Greece) bust; we have bust banks; and all the economic levers, including record low interest rates, and QE, have been pulled, both here and in the USA. So there's nowhere left to go - not as far that is, as neoliberal economics is concerned - see Larry Elliot's article in the Guardian.

On top of all this, now we hear that yet another bailout of European banks is planned by Sarkozy and Merkel in the EU. This will cost at least £200 billion, but the EFSF could go up to €2 trillion. But  hang on..... where is all this money coming from? Why, from you dear taxpayer, you and your children, and your children's children will have to fork out at least that amount, and possibly more, to bail out commercial banks. And yet, this really is the plan - a kind of madness.

The Guardian have summarised the current situation in their Eurozone graphic - see below:

The Eurozone crisis - source: The Guardian

So what is the answer? Not more QE, that is for sure, and no more bank bailouts. The state has done its bit, now it is time for the market to bear all of the costs of the debt in the system. That sure will hurt bad, it wont be easy for anyone, but it is the only solution. The major banks must be nationalised and the rest written off. Then the nationalised banks need to be turned into national investment banks (with some mutualised). We then need a sustained burst of Green QE, starting with the Green New Deal.The Green Party plan is to start by investing £44 billion in creating one million green jobs, a far better investment than QE. There is much more to be done, including building renewable energy sources, and affordable housing, and a citizen's pension, but this is only  the start. If you want to know more, take a look at our manifesto here.