Tag: Austerity lie

Sturgeon’s threats demonstrate the anti-democratic, uncooperative inflexibility of nationalism

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Thanks to Dr Éoin Clarke for the infographic

Nicola Sturgeon threatened that she would be prepared to have her MPs vote down a Labour Budget if Ed Miliband was not prepared to cut a deal with the Nationalists at Westminster. Taking part in a live televised debate in Edinburgh with the leaders of the other three main Scottish parties, Ms Sturgeon said she intended to block Labour’s first Budget before negotiating a series of amendments. The Scottish National Party (SNP) leader’s position, revealed just days ahead of Thursday’s general election, was immediately seized upon by the Conservatives as the tedious stuck record styled electioneering “evidence” yet again that a Labour government supported by Ms Sturgeon’s party would result in “absolute chaos” for the country.

Bravo, Nicola Sturgeon. She seems determined to allow a Conservatve victory because of her constant and unqualified attacks on the Labour Party, the issuing of threats like this one, and the perpetuation of nationalist myths aimed at undermining the chance of a Labour victory. It’s bad enough with the Tories’ scaremongering in the press about the prospect of a Labour/Scottish National Party coalition, without Sturgeon fueling it.

I have to add that Cameron’s claim, repeated ad nauseum, that a minority Labour government would be held hostage by the SNP is purely propagandarised tosh. The truth is that the SNP will not in reality be able to hold a minority Labour government hostage unless the Tories allow them to do so, because of course, the Tories also get to vote on things like budgets, defence and so forth, in Parliament.

Scottish Labour leader Jim Murphy said that Sturgeon had already threatened to block his party’s Queen’s Speech.

It’s worth a reminder at this point that crucially, the Scottish National Party’s spending plans imply deeper cuts than Labour’s plans entail over the next five years, as the Institute for Fiscal Studies (IFS) said in a report last month, highlighting a “considerable disconnect” between the nationalists’ rhetoric on austerity and their policies.

“The “anti-austerity rhetoric” of the Scottish National Party is not matched by its detailed spending plans and it would impose deeper cuts than Labour,” said the respected independent fiscal watchdog. The IFS also said that austerity would last longer under the SNP than under the other parties.

Furthermore, the IFS stated: “There is a considerable disconnect between this [SNP] rhetoric and their stated plans for total spending, which imply a lower level of spending by 2019–20 than Labour’s plans.”

This exposes Nicola Sturgeon’s attempt to portray Labour as “Tory-lite” on spending cuts for the outright lie that it is. Sturgeon is no longer credible on every claim she has made, parading the SNP as the only alternative to austerity. In plain language, Carl Emmerson, deputy Director of the IFS said: “There would be more spending cuts under the SNP than under Labour or the Liberal Democrats according to the numbers in the SNP manifesto.”

Shadow Scottish Secretary and Scottish Labour Glasgow East candidate Margaret Curran said: “For all the bombast and the bluster of the SNP it has now been conclusively shown that their anti-austerity posturing is nothing more than a front. Their plans would extend austerity and harm Scotland. And as is always the case the cuts would be felt by the poorest and most vulnerable in our communities. We cannot let that happen.”

She added: “The choice is now simple – continued austerity with the SNP, or an end to Tory austerity with Scottish Labour.”

Nicola Sturgeon claimed to have committed her party to kicking the Tories out of Downing Street. It might be a tad tricky for her to explain to her supporters a Commons vote which could, in theory, allow the Tories back in again. That’s why, it’s was a positive move on Miliband’s part to call her bluff.

And let’s look carefully at the details: Milband has not ruled out the possibility of discussions, consultations, or taking into consideration SNP views when framing future legislation. But he has made it clear he will not be manipulated or threatened.

The Conservative plans to eliminate the deficit implied at least £10bn a year of unspecified cuts to child benefit, tax credits, housing benefit, disability benefits and other working age benefits out of a total budget of about £100bn,” the IFS said in their report

Even if these cuts were achieved, the Tories would have to cut unprotected departments’ budgets by another 18 per cent in real terms, about the same amount again as over the past five years. These cuts are also unspecified by the Conservatives, who have chosen, undemocratically, to hide the details from the electorate. We simply cannot risk another term of devastating Tory cuts to our welfare, public services and the NHS. Especially considering that risk would be founded on misinformation and lies.

Sturgeon’s most recent revelation that the party could bring the Budget of a Labour government down came under fire from Kezia Dugdale, Labour’s deputy leader in Scotland.

Ms Dugdale said: “Many people who have trusted Nicola Sturgeon will be shocked to hear her say she will vote down a ­Labour Budget. A Budget which will bring in measures such as the mansion tax and the bankers’ bonus tax.

“This shows that the people of Scotland should not gamble with the SNP.”

Ed Miliband, a principled internationalist, said: “Nationalism never built a school. It never lifted people out of poverty. It never created a welfare state that healed the sick and protected our most vulnerable. Nationalism cannot create the jobs we need.”

“Labour believes in “the principles of sharing and solidarity”, he added, “that underpin the partnerships of four nations in the modern UK.”

He said: “If we set England against Scotland, if we set any part of our country against another, it does not help working people, it harms working people. It undermines the ability to share resources. It drives down wages and conditions in the race to the bottom.”

Mr Miliband hit back at Ms Sturgeon’s claims that if Labour “fails to work with the SNP,” this would see David Cameron win a second term as Prime Minister. He added that if the Scottish Nationalists win dozens of seats from Labour in Scotland, this would increase Tory chances of being the largest party.

Mr Miliband vowed: “I will never put the Tories into government. I have spent my entire political career fighting them.”

However Nicola Sturgeon has spent most of her career fighting the Labour Party and propagating lies about them. (See A crib sheet of responses to the crib sheet of lies about the Labour Party: Part one and Part Two.)

Sturgeon has suggested that though the SNP could be relied upon to help “lock out” the Tories from power, she would “be inclined,” if voting in England, to endorse the Greens.

Doing the latter, it should be observed, makes achieving the former rather less likely. The more Green MPs there are the fewer Labour MPs there are and the fewer Labour MPs there are the more probable it is that David Cameron somehow stumbles his way into a second term. Sturgeon has some strange logic.

Given that the IFS have said that the true scale of the gap between Labour and the Tories has been further revealed – director Paul Johnson said at the post-Budget briefing: “Our latest estimates suggest that Labour would be able to meet its fiscal targets with no cuts at all after 2015-16,” Sturgeon’s ridiculously unevidenced, pure electioneering claim that Labour are “Tory-lite” – so easily refuted – is just one of the many lies she has told, and gives us good reason not to trust her.

If the SNP remain so aggressively uncompromising, divisive, chancing manipulation instead of cooperation, they will usher in another Tory government at Westminster, and in that event, they will certainly face paying a heavy political price among their supporters – as happened in 1979. Unfortunately, the rest of the UK will also pay a heavy price.

Despite Sturgeon’s undoubted rhetoric skill, Scottish nationalism continues to be what all nationalism always has been: parochial, vicious, ugly, divisive and insular. It’s evident that this has fostered a narrow tribalism, an inability to negotiate, or to build cooperation, and an inability to understand and comprehend the rational, logic and legitimacy of differing opinions, which is very evident in the non-democratic threats that Sturgeon has issued. It’s a pity she doesn’t oppose the Conservatives, rather than attacking the only viable progressive party for the UK. Sturgeon presents a superficial progressive rhetoric with no integrity, and no grounding in reality. The SNP’s self-claimed progressive credentials don’t stand up to scrutiny. When Sturgeon was asked at her manifesto launch to name a redistributive policy enacted by the SNP in Holyrood, she was unable to cite a single example.

Sturgeon simply chats about progressive ideas to advance the regressive goal of separatism. It’s all style, with no real substance at all. Other than a clan SNP nationalist agenda.

For people living in England, NOTHING is more important than getting the Tories out. I suspect that is true for many in Scotland, too.  So please make sure that your vote is a considered, informed and responsible one. If the Tories get another term, we will lose all of the gains of our post-war settlement. We will see our Human Rights Act repealed, (Labour’s legislation, and Cameron has also pledged to leave the European Convention.) That is why we MUST ensure that the Tories don’t get the opportunity, preferably ever again.

The only sure way of defeating the Tories is with a Labour majority.

Related

The real progressive in the leader’s debate is Ed Miliband

SNP appeal to Tory voters: We are just like you

If you think the SNP are a left-wing force, think again – David Clark


 Many thanks to Robert Livingstone for his excellent memes

This unsnookered isle

1395990_559940054075527_258446375_nWriting in the New York Times, Paul Krugman said Britain’s performance since 2010, after the global financial crisis struck, has been “startlingly bad,” with a tentative recovery that began in 2009, which was stalled in the last quarter of 2010. In his article entitled This Snookered Isle, Krugman provides an indictment of the Coalition’s claims and their methods of managing the UK economy. Mr Krugman echoes many leading economists in Britain.

Krugman says: “Unfortunately, economic discourse in Britain is dominated by a misleading fixation on budget deficits. Worse, this bogus narrative has infected supposedly objective reporting; media organizations routinely present as fact propositions that are contentious if not just plain wrong.”

Simon Wren-Lewis of Oxford University has dubbed this narrative “mediamacro.” As his coinage suggests, this is what you hear all the time on TV and read in British newspapers, presented not as the view of one side of the political debate, but as simple fact.

Yet none of it is true.

Krugman goes on to ask: “Was the Labour government that ruled Britain before the crisis profligate? [As so often claimed by the Conservatives.] Nobody thought so at the time.”

In 2007, government debt as a percentage of G.D.P. was close to its lowest level in a century (and well below the level in the United States), while the budget deficit was quite small. The only way to make those numbers look bad is to claim that the British economy in 2007 was operating far above capacity, inflating tax receipts. But if that had been true, Britain should have been experiencing high inflation, which it wasn’t.

What about growth? When the current British government came to power in 2010, it imposed harsh austerity — and the British economy, which had been recovering from the 2008 global slump, soon began slumping again. In response, Prime Minister David Cameron’s government backed off, putting plans for further austerity on hold (but without admitting that it was doing any such thing). And growth resumed.” (See also: The Return of Expansionary Austerity.)

He adds: “If this counts as a policy success, why not try repeatedly hitting yourself in the face for a few minutes? After all, it will feel great when you stop.

Given all this, you might wonder how mediamacro gained such a hold on British discourse. Don’t blame economists. As Mr. Wren-Lewis points out, very few British academics (as opposed to economists employed by the financial industry) accept the proposition that austerity has been vindicated. This media orthodoxy has become entrenched despite, not because of, what serious economists had to say.”

Cameron has misled the public by making Government debt analogous with personal debt. It isn’t. If a person misses a mortgage payment, for example, they may risk damaging their credit rating, and possibly even losing their home. So if we owe money, we need to find a way to pay it back as soon as possible. But government debt does not need to be paid back overnight – in fact, it’s widely recognised to be potentially damaging to do so.

In an economy, one person’s spending is another person’s income. So when the government cuts spending, it reduces people’s income, leading to less business, more unemployment, and a vicious spiral of slowing down the economy.

Osborne’s austerity measures have achieved nothing, except deepening poverty, widening economic inequality, and suffering for the poorest and most vulnerable communities – and Osborne announced in his Autumn statement that we face at least four more years of it, should the Tories gain office again.

Austerity is not an economic necessity, nor is it temporary measure to balance the books, but rather, it reflects the Conservative’s long-standing ideological commitment to dismantle the gains and achievements of the post war settlement: public services, the welfare state and the National Health Service. This is where most of the cuts have been aimed.

With a shortfall in tax receipts set to increase the size of the deficit by at least £25 billion during the next parliament, the Office for Budget Responsibility have said the only way Osborne could balance the books would be through shrinking the state to a level not seen since before the Second World War: “Total public spending is now projected to fall to 35.2 percent of GDP by 2019-20, taking it below the previous post-war lows reached in 1957-8 and 1999-2000 to what would probably be its lowest level in 80 years”. Robert Chote.

Despite facing a global recession, the Labour Government invested in our public services, and borrowed substantially less in thirteen years than the Coalition have in just five years. UK citizens were sheltered very well from the worst consequences of the global bank-induced crash.

Gordon Brown got it right in his championing of the G20 fiscal stimulus, agreed at the London summit of early April 2010, which was a continuation of his policies that had served to steer the UK economy out of the consequences of a global recession, and to protect citizens from those consequences.

Osborne’s policy of imposing austerity and budget cuts on an economy that was actually recovering was a catastrophic error. The austerity cuts propelled the economy backwards and into depression; and, far from using public spending as a countervailing force against the cutbacks in private sector investment, the Coalition’s budget cuts served to aggravate the crisis. Many people are suffering terribly as a consequence, many have been reduced to a struggle for basic survival.

The Conservatives have been engaged in a significant transfer of income from the least well-off half of the population to the more affluent in the past five years. Those with the lowest incomes have been hit hardest by austerity. Deliberately so.

It’s inconceivable that Coalition policies were formulated for anything other than profiting the wealthy at the expense of the poorest.

The following cuts came into force in April 2013:

  • 1 April – Housing benefit cut, including the introduction of the bedroom tax
  • 1 April – Council tax benefit cut
  • 1 April – Legal Aid savagely cut
  • 6 April – Tax credit and child benefit cut
  • 7 April – Maternity and paternity pay cut
  • 8 April – 1% cap on the rise of in working-age benefits (for the next three years)
  • 8 April – Disability living allowance replaced by personal independence payment (PIP)
  • 15 April – Cap on the total amount of benefit working-age people can receive.

Here are some of the Tory “incentives” and consquences for the wealthy:

In November last year, my proposition was also verified in a study of the cumulative impact of tax and welfare changes, from in-work benefits to council tax support, to the cut in the top rate of income tax and an increase in tax-free personal allowances, the report concluded that Coalition policy has been regressive across the income spectrum.

Its authors, Paola De Agostini and Professor Holly Sutherland at the university of Essex, and Professor John Hills at the LSE, wrote: “Whether we have all been ‘in it together’, making equivalent sacrifices through the period of austerity, is a central question in understanding the record of the coalition government … It is clear that the changes did not lead to uniform changes in people’s incomes. The reforms had the effect of making an income transfer from the poorer half of households (and some of the very richest) to most of the richer half, with no net effect on the public finances.

“In effect, the reductions in benefits and tax credits financed the cuts in taxes. Some groups were clear losers on average – including lone-parent families, large families, children, and middle-aged people (at the age when many are parents).”

Last year, the scale of Britain’s growing inequality was revealed by a report from the leading charity, Oxfam, showing that the country’s five richest families now own more wealth than the poorest 20% of the population.

Oxfam urged the chancellor to use the 2014 spring budget to make an assault on tax avoidance and introduce a living wage, in a report highlighting how a handful of the super-rich, headed by the Duke of Westminster, have more money and financial assets than 12.6 million Britons put together.

In the report,  A Tale of Two Britains, Oxfam said the poorest 20% in the UK had wealth totalling £28.1bn – an average of £2,230 each. The latest rich list from Forbes magazine showed that the five top UK entries – the family of the Duke of Westminster, David and Simon Reuben, the Hinduja brothers, the Cadogan family, and Sports Direct retail boss Mike Ashley – between them had property, savings and other assets worth £28.2bn.

And:

Increasing inequality is a sign of economic failure rather than success. It’s far from inevitable – a result of political choices that can be reversed.

The Labour Party have announced this week that tackling tax avoidance and evasion is a priority, and they plan to push emergency laws through parliament designed to impose far higher fines and close  tax loopholes. This move alone will raise more than £7.5bn a year in revenue for the Treasury. It’s a measure that sends out a clear message: the poorest people should not have to pay more to compensate for tax abuses by the rich.

Also announced this week was Labour’s intention to abolish archaic rules that allow wealthy “non-domiciles”, who live in the UK but claim to be domiciled overseas, to avoid paying tax in this country on what they earn outside of Britain.

Labour’s careful, costed and evidence-based policies also include: a Bankers’ Bonus Tax; a Mansion Tax; repeal of the Bedroom Tax; a reversal of the Pension Tax relief that the Tories gifted to millionaires; a reversal of the Tory Tax cut for Hedge Funds; freezing gas and electricity bills for every home a the UK for at least 20 months; the big energy firms will be split up and governed by a new tougher regulator to end overcharging; banning exploitative zero hour contracts; introduction of a living wage (already introduced by some Labour councils); a reversal of the £107,000 tax break that the Tories have given to the millionaires; reintroduction of the 50p tax; scrapping George Osborne’s “Shares for Rights” scheme that has opened up a tax loophole of £1 billion; ensuring Water Companies place the poorest households on a Social Tariff that makes it easier for them to pay their Water Bills; breaking up the banks and separating retail banking from investment banking; introduction of measures to prevent corporate tax avoidance, scrapping the Profit Tax Cut (Corporation Tax) that George Osborne has already announced for 2015 and many more.

These are not austerity measures. They are much needed, strongly redistributive policies.

The Organisation for Economic Co-operation and Development (OECD) has recently found what most of us already knew: that income inequality actually stifles economic growth in some of the world’s wealthiest countries, whilst the redistribution of wealth via taxes and benefits encourages growth.

Will the super-rich leave the UK, bag, baggage and all, as the right-wing scaremongers bleat, if we have a fair government that expects tax contributions from the cosseted rich? I seriously doubt it. They could start an exodus to New York I suppose, a city with a currently heavier tax regime, yet curiously not short of thousands of super-rich residents.

Ask yourself this: what are these tax-evading, hoarding and loudly complaining people actually contributing to our society? As far as I can see, they are supported by enormous state handouts, at everyone elses’ expense. They are propped up in their greed for ever-increasing profits,

Tax avoidance is costing us at least £70bn each year.

The most costly benefit payments in the UK are Tax Credits, Housing Benefit and Child Benefit, totalling £56.4bn a year.  These are not out of work benefits.  Some 65% of the total spent on working age benefits, is paid to people in work, whose wages are below subsistence levels.

Add to that the corporate tax benefits, such as the value of the cheap credit made available to banks and other business, the insurance schemes run by the government to protect exporters, the marketing for British business laid on by Vince Cable’s ministry, the public procurement from the private sector … a recent study conducted by Kevin Farnsworth, a senior lecturer in social policy at the University of York, concludes that direct corporate welfare costs British taxpayers just short of £85bn a year.

The Tory’s justification for allowing exploitative tax avoiders to have all of their own way is the mythological “trickle down effect.” Or “voodoo economics” to Keynsians. It was also known as the “horse and sparrow theory” a couple of centuries back. The idea being that if you feed a horse plenty of oats, the sparrows in it’s wake will also be fed .

And we are most certainly being fed horsesh*t.

It’s time to put an end to corporate welfare, and state handouts to the wealthy. We can do that by voting for a Labour government.

And if some thieving, hoarding, greedy misers threaten to leave the UK, why, I think I’ll offer to help them pack.

rich keep millonsBig thanks to Robert Livingstone for his excellent memes.

It’s time to end the lie that Labour and Tories are ‘the same’ on austerity – Sunny Hundal & Sue Jones

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It is a claim so ubiquitous that most people repeat it without even having to explain it:

‘there’s hardly any difference between the main political parties’.

It’s a claim the Greens, SNP and UKIP now repeat endlessly without being challenged. It is also a claim exposed as complete falsehood last week.

For all the Chancellor’s giveaways and triumphant rhetoric during the Budget, the most significant change was a capitulation to Labour’s charge that the Tories were cutting spending to 1930s levels. In fact the difference between Labour and Tories – especially on economic matters – is the biggest it has been in over a generation. To claim otherwise is to be ignorant of the facts.

Let’s go over the numbers first. In December last year, Osborne said he would slash government spending until it reached 35.2% of GDP, a level last reached during the 1930s.

Rather than accept the cuts, Labour attacked his plans as “extreme and ideological” and said they would not match Osborne’s race to the bottom.

The difference between Labour and Tory plans on spending is colossal. To cut spending to 35.2%, the IFS said Osborne would have to cut departmental spending by £55bn from 2015 to 2020, over £20bn more than what has been slashed over the last five years. Key government departments would have to cut spending by over 50%, after already being cut to the bone. It would render many of them useless.

Labour plans are significantly different but lost in technical detail, which has allowed many on the left to wrongly claim they are the same. Firstly, they have committed to raising taxes to cut the UK’s £90 billion yearly budget deficit (i.e. the 50p rate, Mansion tax, bankers’ bonus tax, a higher bank levy), while Osborne has pledged to focus on spending cuts rather than tax rises.

More importantly, the Tories plan an overall budget surplus by 2018-19, while Labour has only committed to a current budget surplus in the next parliament. This sounds like a boring technical detail – and in many ways it is – but the practical difference is vast.

It means that while Coalition had planned over £55 Billion in spending cuts, Labour had pledged only to plug potentially a £4 Billion gap – which could even come from tax rises. A difference of Labour and Tory plans of more than £50 Billion is not to be sniffed at (in comparison the entire Scottish Budget of 2014 was £35 Billion).

To claim that Labour and Tory ‘austerity’ is the same, as some on the left have done, isn’t just ludicrous but a bare-faced lie. It illustrates a huge distortion of the facts. Of course, the Greens and SNP have an interest in saying that Labour and Tories are the same, but that doesn’t make it true.

Last week was significant because Osborne was forced into a u-turn on the biggest issue of the past five years. Of course, the press played this down. He retreated, somewhat slightly, from extreme austerity: pledging to cut spending to 36% of GDP rather than 35.2%. This mostly came from the OBR’s projection that spending on debt interest in 2019-20 will be £9bn less than it expected earlier.

But Osborne’s sleight-of-hand had bigger meaning for Labour: now it means they don’t have to make any cuts over the next parliament, as the IFS pointed out. The difference between the two parties is now even more stark.

To the naysayers who still maintain that Labour and Tories are ‘the same’, a bit more explanation is required. Last year Osborne said he would publish a ‘Budget Responsibility Charter’ and test whether Labour would vote for it. It put Labour in a lose-lose position: they would be painted as ‘profligate’ if they didn’t sign up, and painted as signing up to Tory austerity by the left if they did. Neither was true, since signing up was consistent with Labour’s initial plans. Labour decided to avoid Osborne’s trap and he didn’t bother publishing the Charter. It changed nothing.

Furthermore, the claim that Labour has signed up to Tory austerity until 2016 is untrue. As a matter of technicality, Labour cannot reverse plans already put in place for that fiscal year after being elected.

This has always been a somewhat technical debate, obfuscated by many who have an axe to grind. For political and economic reasons, Labour could never be like Syriza, so it has always been ridiculous to hope it could. Plus, it’s easy for the Greens and SNP to make wild claims about rejecting austerity without spelling out how a massive increase in spending required would be funded.

I suspect that most people who have already decided that Labour and Tories are the same won’t ever be convinced. Labour’s plans won’t catch the world on fire, but to claim they are the same as Tory austerity plans is a lie that has finally been laid to rest.

With big thanks to Labourlist author Sunny Hundal.

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Recently, the SNP, Greens, TUSC and other parties on the so-called  left have made the claim that: “Labour voted for austerity.” This is such a blatant lie. The vote, clearly stated on the Hansard record (see 13 Jan 2015: Column 738, Charter for Budget Responsibility), was pertaining strictly to the motion: “That the Charter for Budget Responsibility: Autumn Statement 2014 update, which was laid before this House on 15 December 2014, be approved.”  That isn’t about austerity at all.

The charter sets out that the Office of Budget Responsibility (OBR) will continue to monitor our fiscal rules. As we know, the OBR has written extremely critical economic forecasts and analysis of austerity and the Tory spending cuts, clearly expressing the risks that the Chancellor is running and the scale of the damage his strategy will inflict on what remains of our public services.

Furthermore, austerity and fiscal figures are not mentioned at all in the Charter.

It’s worth noting that whilst Ed Balls challenged Osborne, there was a curious silence from the SNP and the Green Party. It was Ed Balls that challenged Osborne’s outrageous claims regarding “halving the deficit”- such a blatant lie, upon which even the exceedingly Conservative Spectator spluttered contempt. Or any of the other lies, some of which have already earned the Conservatives official rebukes from the Office for National Statistics (ONS). (See “bankruptcy lie” for example, on the hyperlinked article)

Furthermore, it’s about time that some MP’s, including Caroline Lucas, amongst others, recognised that there is a fundamental difference between the meaning of the word budget and the word austerity. Conflating the two for the purpose of politicking is unprincipled and dishonest.

It’s also worth noting from the same debate on the Hansard record:

13 Jan 2015 : Column 746

Caroline Lucas: Does the Chancellor agree with me that with the feeble and inconsistent opposition coming from the Labour Front Bench, there is a very good reason for seeing the SNP, the Greens and Plaid as the real opposition on this issue because we are clear and consistent about the fact that austerity is not working?

Mr Osborne: That shows why we want the hon. Lady’s party in the TV debates.

Yes, I just bet they do, to collaborate with the Tories in attacking and undermining the Labour Party, not the Coalition, who are, after all, the ones responsible for introducing austerity measures. I don’t imagine for a moment that Osborne values further challenges to his outrageous claims of efficacy regarding austerity measures.

What is very evident when you read through this debate, is that Ed Balls and a couple of other Labour MPs presented the ONLY challenges to Osborne on this matter, just to reiterate this important point.

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It’s also worth bearing in mind that Ed Miliband established the International ANTI-austerity Alliance. Back in 2012, Miliband said: “There is a grip of centre-right leadership on Europe which has said there’s only one way forward and that’s austerity, and you’ve got to have a decisive move away from that.(See also: Labour leader Ed Miliband’s anti-austerity alliance will fight for the European dream.)

And why would Miliband be attending ANTI-austerity protests if he supported austerity?

Labour leader Ed Miliband speaks on stage at Hyde Park, during the TUC organised protest against austerity measures in London

Labour leader Ed Miliband speaks on stage to over 150,000 at Hyde Park, during the TUC organised protest against austerity measures in London.

It’s interesting to see the Chicago Tribune’s article: Ed Balls, UK’s anti-austerity finance chief in waiting.  Balls dismissed Osborne as a “downgraded chancellor” after Britain lost its triple-A credit rating.

One of his main charges has been that the government is unfairly spreading the economic pain it deems necessary to fix the economy. Austerity cuts are the burden of the poorest citizens.

Balls says that a decision to cut the top tax rate amounts to an unjustified “tax cut for millionaires”, whilst his party has been scathing of the Conservative “reform” of the welfare system.

A point echoed many times by Ed Miliband, too. Accusing the government of making lower or no income groups pay for the recovery while shielding the rich is a claim which strikes a chord with some voters who view Cameron and his government – many of whom were educated at the same top fee-paying school – as out of touch.

Caroline Lucas was born in Malvern to Conservative parents and attended Malvern Girls’ College (which became Malvern St James in 2006), a fee-paying private school. Ed Miliband, on the other hand, went to a comprehensive school.

Polls also show that many voters approve of the government’s drive to rein in welfare costs and the government has demanded that Labour spell out what they would do to fix the economy. They have, but with understandable caution.

Labour’s careful, costed and evidence-based policies include: a Bankers’ Bonus Tax; a Mansion Tax; repeal of the Bedroom Tax; a reversal of the Pension Tax relief that the Tories gifted to millionaires; a reversal of the Tory Tax cut for Hedge Funds; freezing gas and electricity bills for every home a the UK for at least 20 months; the big energy firms will be split up and governed by a new tougher regulator to end overcharging; banning exploitative zero hour contracts; introduction of a living wage (already introduced by some Labour councils); a reversal of the £107,000 tax break that the Tories have given to the millionaires; reintroduction of the 50p tax; scrapping George Osborne’s “Shares for Rights” scheme that has opened up a tax loophole of £1 billion; ensuring Water Companies place the poorest households on a Social Tariff that makes it easier for them to pay their Water Bills; breaking up the banks and separating retail banking from investment banking; introduction of measures to prevent corporate tax avoidance, scrapping the Profit Tax Cut (Corporation Tax) that George Osborne has already announced for 2015 and many more.

These are not austerity measures. They are strongly redistributive policies.

It’s difficult enough opposing the manipulative, lying authoritarian Conservative-led government, without having to constantly counter lies and smears from fringe parties claiming to be on the Left, while propping up the Right simply to gain votes and undermine the only feasible opposition to the Tories, currently.

Shame on them.

Sue Jones

Related

Labour’s fiscal targets mean cuts could end next year – Labourlist

Labour’s fiscal responsibility and caution isn’t austerity, so stop doing Lynton Crosby’s job for him.

The ultimate aim of the “allthesame” lie is division and disempowerment of the Left.

Narxism

Electioneering and grandstanding: how to tell the difference between a moral political party and a moralistic one.

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Pictures courtesy of Robert Livingstone

A crib sheet of responses to the crib sheet of lies about the Labour Party: Part one

Over the past few years, many of us have spent a lot of time and effort repeating ourselves to dispel Tory lies. However, we have also had to contend with negative campaigning and tiresome lies from UKIP, the Greens, the SNP, the NHA, Left Unity and a variety of other parties, posting on social media sites, in the mainstream media and smearing the Labour Party. The repetition becomes very tedious very quickly.

Each of the offending parties prefer to attack the Labour Party and lie about their policies, rather than promoting their own party by merit – by using positive statements about their own policies and achievements. This strategy cannot possibly help them gain any lasting credibility and support, since credibility cannot be sustained when it’s being built upon a foundation of lies and political grandstanding.

Ultimately, the only beneficiaries of this behaviour will be the Conservatives, left largely unchallenged by the fringe “narxist” parties on the so-called Left. The only party actually meaningfully opposing the Tories is Labour.

Whilst the Left vote is being intentionally diluted by a proliferation of lies and smear campaigns to confuse, demoralise and bolster fringe party support, you can pretty much bank on the fact that Tory supporters will ALWAYS vote for the Tories. No amount of claiming “I’m more socialist than you” will stand up to scrutiny or save this country and those people already suffering terribly if the Tories manage to succeed in May.

I decided to consolidate the frequently encountered lies and construct a crib sheet of facts and evidence for anyone to use in response to lies, propaganda, nonsense and misinformation. Or to simply enlighten.

Here are some of the most frequently used “criticisms” of Labour:

  • All political parties are the same.

A compare and contast of New Labour and Conservative policies and achievements. This demonstrates very well that there are very clear differences, despite the fact that many considered Blair to be further right than Miliband or his predecessors Political parties – there are very BIG differences in their policies.

47 key costed and evidenced policy proposals currently from the Labour Party: 47 more good reasons to vote labour.

I’ve also addressed this issue at length here – The ultimate aim of the “allthesame” lie is division and disempowerment of the Left.

  • Labour took us to war with Iraq. Blair lied about “weapons of mass destruction”.

1. In 2003, Conservatives voted with the Government to send British troops into military action,  the Conservative votes carried  the motion authorising the conflict, since 139 Labour MPs rebelled against their party’s whip. Iain Duncan Smith led Conservative MPs in demanding a rush to war as early as 2002. 139 Labour MPs rebelled against the governments’ line and saying there was no moral case for war against Iraq.15 Tory MPs defied their leadership and voted  against the government’s policy.

53 Liberal Democrat MPs voted against the government. (See: Parliament gives Blair go-ahead for war and How MPs voted.)

It’s also worth noting that the same democratic process prevented a war with Syria in 2013, thanks to Ed Miliband rallying the opposition. Miliband repudiated the Iraq war, and his principled stance regarding Syria drew a clear line under the Blair era. (Another useful link –Ed Miliband Attacks Previous Labour Government In One Nation Speech To Fabian Society.)

2. Saddam Hussein, was internationally known for his use of chemical weapons in the 1980s against Iranian and Kurdish civilians during and after the Iran–Iraq War. This has been classified as an act of genocide. It was known in the 1980s that he pursued an extensive biological weapons program and a nuclear weapons program, though it’s unclear if nuclear bombs were built. Chemical, biological and nuclear weapons are all classified as weapons of mass destruction (WMDs). Both the US and the UK had sold weapon components to manufacture WMDs to Iraq previously, during the 80s, under the Thatcher government.

The chemical weapons which had already been deployed against the Kurds killed between 3,200 and 5,000 people and injured 7,000 to 10,000 more, most of them civilians. Thousands more died of complications, diseases, and birth defects in the years after the attack.

It still remains the largest chemical weapons attack directed against a civilian-populated area in history. The Halabja attack has been recognised by the UK, amongst other countries, as a separate event from the Anfal Genocide  – also known as “Chemical Ali” due to the use of chemical weapons, too – that was also conducted against the Kurdish people by the Iraqi regime under Saddam Hussein.

Furthermore, the New York Times and other sources reported recently that from 2004 to 2011, American and American-trained Iraqi troops repeatedly encountered, and were wounded by, chemical weapons remaining from years earlier during Saddam Hussein’s rule. American troops reported finding roughly 5,000 chemical warheads, shells or aviation bombs, according to interviews with dozens of participants, Iraqi and American officials, and heavily redacted intelligence documents obtained under the Freedom of Information Act. (See also: Iraq and weapons of mass destruction and Do Reports of WMD Found in Iraq Vindicate George W. Bush?) Thatcher’s arms deals with Saddam Hussein ultimately led to genocide and the first Gulf War (1990-91) under John Major.

(For the record, I strongly protested against the Iraq war, however, establishing the facts about how and why it happened is important. I don’t doubt that Persian Gulf oil resources, vested interests and profit incentives contributed significantly to the motivations of some, but I also think there is evidence that others genuinely believed that the war was founded on a humanitarian issue, and that’s regardless of my own perspective on the matter. I don’t agree, but if anything of value is to be learned, we have to take all of the contributing perspectives and debate into account.)

  • “Labour voted for austerity.

This is such a blatant lie. The vote, clearly stated on the Hansard record (see 13 Jan 2015: Column 738, Charter for Budget Responsibility), was pertaining strictly to the motion: “That the Charter for Budget Responsibility : Autumn Statement 2014 update, which was laid before this House on 15 December 2014, be approved.”  That isn’t about austerity.

The charter sets out that the Office of Budget Responsibility (OBR) will continue to monitor our fiscal rules. As we know, the  OBR has written extremely critical economic forecasts and analysis of austerity and the Tory spending cuts, clearly expressing the risks that the Chancellor is running and the scale of the damage his strategy will inflict on what remains of our public services.

It’s worth noting that whilst Ed Balls challenged Osborne, there was a curious silence from the  SNP and the Green Party. It was Ed Balls that challenged Osborne’s outrageous claims regarding “halving the deficit”- such a blatant lie, upon which even the exceedingly Conservative Spectator spluttered contempt. Or any of the other lies, some of which have already earned the Conservatives official rebukes from the Office for National Statistics. (See “bankruptcy lie” for example, on the hyperlinked article)

Furthermore, it’s about time that some MP’s, including Caroline Lucas, amongst others, recognised that there is a fundamental difference between the meaning of the word budget and the word austerity. Conflating the two for the purpose of politicking is unprincipled and dishonest.

It’s also worth noting from the same debate on the Hansard record:

13 Jan 2015 : Column 746

Caroline Lucas: Does the Chancellor agree with me that with the feeble and inconsistent opposition coming from the Labour Front Bench, there is a very good reason for seeing the SNP, the Greens and Plaid as the real opposition on this issue because we are clear and consistent about the fact that austerity is not working?

Mr Osborne: That shows why we want the hon. Lady’s party in the TV debates.

Yes, I just bet they do, to collaborate with the Tories in attacking and undermining the Labour Party, not the Coalition, who are, after all, the ones responsible for introducing austerity measures. I don’t imagine for a moment that Osborne values further challenges to his outrageous claims of efficacy regarding austerity measures.

What is very evident when you read through this debate, is that Ed Balls and a couple of other Labour MPs presented the ONLY challenges to Osborne on this matter, just to reiterate this important point.

10940505_767712909964906_6225427822143651262_n

It’s also worth bearing in mind that Ed Miliband established the International ANTI-austerity Alliance. Back in 2012, Miliband said: “There is a grip of centre-right leadership on Europe which has said there’s only one way forward and that’s austerity, and you’ve got to have a decisive move away from that.(See also: Labour leader Ed Miliband’s anti-austerity alliance will fight for the European dream.)

And why would Miliband be attending ANTI-austerity protests if he supported austerity?

Labour leader Ed Miliband speaks on stage at Hyde Park, during the TUC organised protest against austerity measures in London

 Labour leader Ed Miliband speaks on stage to over 150,000 at Hyde Park, during the TUC organised protest against austerity measures in London

It’s interesting to see the Chicago Tribune’s article: Ed Balls, UK’s anti-austerity finance chief in waiting.  Balls dismissed Osborne as a “downgraded chancellor” after Britain lost its triple-A credit rating.

One of his main charges has been that the government is unfairly spreading the economic pain it deems necessary to fix the economy. Austerity cuts are the burden of the poorest.

Balls says that a decision to cut the top tax rate amounts to an unjustified “tax cut for millionaires”, whilst his party has been scathing of reform of the welfare system.

A point echoed many times by Ed Miliband, too. Accusing the government of making lower or no income groups pay for the recovery while shielding the rich is a claim which strikes a chord with some voters who view Cameron and his government – many of whom were educated at the same top fee-paying school – as out of touch.

Caroline Lucas was born in Malvern to Conservative parents and attended Malvern Girls’ College (which became Malvern St James in 2006), a fee-paying private school. Ed Miliband, on the other hand, went to a comprehensive school.

Polls also show that many voters approve of the government’s drive to rein in welfare costs and the government has demanded that Labour spell out what they would do to fix the economy. They have, but with understandable caution.

Labour’s careful, costed and evidence-based policies include: a Bankers’ Bonus Tax; a Mansion Tax; repeal of the Bedroom Tax; a reversal of the Pension Tax relief that the Tories gifted to millionaires; a reversal of the Tory Tax cut for Hedge Funds; freezing gas and electricity bills for every home a the UK for at least 20 months; the big energy firms will be split up and governed by a new tougher regulator to end overcharging; banning exploitative zero hour contracts; introduction of a living wage (already introduced by some Labour councils); a reversal of the £107,000 tax break that the Tories have given to the millionaires; reintroduction of the 50p tax; scrapping George Osborne’s “Shares for Rights” scheme that has opened up a tax loophole of £1 billion; ensuring Water Companies place the poorest households on a Social Tariff that makes it easier for them to pay their Water Bills; breaking up the banks and separating retail banking from investment banking; introduction of measures to prevent corporate tax avoidance, scrapping the Profit Tax Cut (Corporation Tax) that George Osborne has already announced for 2015 and many more.

These are not austerity measures. They are strongly redistributive policies.It’s difficult enough opposing the manipulative, lying authoritarian Conservative-led government, without having to constantly counter lies and smears from fringe parties claiming to be on the Left, whilst propping up the Right. Shame on them.

403898_365377090198492_976131366_nMany thanks to Robert Livingstone.

You’d have to be Green to believe the Green Party: two more lies exposed.

PANews+BT_N0321471377269205233A_I1“David Cameron and George Osborne believe the only way to persuade millionaires to work harder is to give them more money. But they also seem to believe that the only way to make you (ordinary people) work harder is to take money away.” Ed Miliband. Source: Hansard, 12 December, 2012

The Tories have trashed the economy, damaged the very structure of our society and destroyed people’s lives. We have seen the return of absolute poverty, malnutrition and illnesses not seen since Victorian times. People have died as a consequence of Tory policies. What do the Green Party do? Lie about the Labour Party.

The Green Party are not opposing Tory austerity: they are opposing what is currently the only credible alternative instead. They prefer to undermine those that ARE challenging the Coalition regarding policies that are having devastating consequences on the poorest and most vulnerable citizens. That’s very telling. I fully support some Green policies, and wish that the Left generally would work in a much more collaborative way. Really that’s the only way of effectively challenging the current neoliberal conservative dominant paradigm.

Given an opportunity to engage in genuine political conversation and to cooperate in opposing the Tory-led draconian policies, those parties claiming to be “further left” than Labour have instead behaved exactly like the Tories. They chose to undermine Labour. These are parties that prioritise grandstanding and electioneering above the needs of the public. That has entailed lying and smearing campaigns. Yet we all share many of the same aims and objectives, values and principles. The infighting simply weakens a broader and more important progressive Movement.

Here are two examples of lies that are currently being circulated on Facebook and elsewhere by the Green Party and the Scottish National Party (SNP), amongst others:

Lie number 1: “Rachel Reeves said she would be tougher on welfare.”

Rachel Reeves has NEVER said she will be “tougher on welfare.” Those saying that she did are lying. She issued a statement shortly after being misquoted. It was Natalie Bennett who perpetuated that misquote too, originally from the Observer. (See Bennett’s article: Rachel Reeves is clear: Labour would set the struggling against the poorest.)

What Rachel actually said was she would be “tougher on the CAUSES of high welfare spending – such as low wages, unemployment, high private sector rents, private company contracts and outsourcing – especially that of Iain Duncan Smith: his vanity projects have cost us millions because contracted private companies have failed to deliver services, the policies are ill-conceived, creating higher costs, ultimately, rather than making any savings as the Tories claimed – the bedroom tax being an example.

The fact that Rachel Reeves was misquoted was clarified to Caroline Lucas too, so the Green Party have no excuse for shamefully lying about the Labour Party’s policy intentions.

In the middle of crucial debate about the Work Capability Assessment and the plight of disabled people because of Coalition policies, initiated by the WOW campaign, Lucas lost all of my respect when she chose political point scoring instead of constructive debate and said this:

Caroline Lucas (Brighton, Pavilion, Green); I was disappointed that Rachel Reeves, on taking up her post as shadow Secretary of State for Work and Pensions, used the opportunity of her first interview to say that she would be tougher than the Tories on people on benefits.

Kate Green (Shadow Minister (Work and Pensions); Stretford and Urmston, Labour); My hon. Friend the Member for Leeds West did not say that. She said that she would be tougher on welfare spending, not on people on benefits.

Sheila Gilmore (Edinburgh East, Labour); Does the hon. Lady agree that there are some forms of welfare spending that we should bring down? In my view, one of those is the excessive amount that is paid to private landlords through housing benefit. I am certainly in favour of reducing that form of welfare spending. Is she not?

Caroline Lucas (Brighton, Pavilion, Green); I am very much in favour of that if the hon. Lady wants to put it under the heading of welfare spending... Source: Hansard which is the parliamentary record. (See: 27 Feb 2014 : Column 457  at 1.29 pm, on the 2nd page.)

Nonetheless the Green Party has continued to misquote Reeves, to my disgust, using negative campaigning and smear tactics akin to the Tories to promote their own party. It’s time that some people distinguished between welfare spending and benefits, to conflate the two purely for political gain is deplorable, dishonest and not in the best interests of the electorate.

Lie number 2: “Labour voted for austerity.”

This is such a blatant lie. The vote, clearly stated on the Hansard record (see 13 Jan 2015: Column 738, Charter for Budget Responsibility), was pertaining strictly to the motion: “That the Charter for Budget Responsibility : Autumn Statement 2014 update, which was laid before this House on 15 December 2014, be approved.”  That isn’t about austerity.

The charter sets out that the Office of Budget Responsibility (OBR) will continue to monitor our fiscal rules. As we know, the  OBR has written extremely critical economic forecasts and analysis of austerity and the Tory spending cuts, clearly expressing the risks that the Chancellor is running and the scale of the damage his strategy will inflict on what remains of our public services.

It’s worth noting that whilst Ed Balls challenged Osborne, there was a curious silence from the  SNP and the Green Party. It was Ed Balls that challenged Osborne’s outrageous claims regarding “halving the deficit”- such a blatant lie, upon which even the exceedingly Conservative Spectator spluttered contempt. Or any of the other lies, some of which have already earned the Conservatives official rebukes from the Office for National Statistics. (See “bankruptcy lie” for example, on the hyperlinked article)

Furthermore, it’s about time that some MP’s, including Caroline Lucas, amongst others, recognised that there is a fundamental difference between the meaning of the word budget and the word austerity. Conflating the two for the purpose of politicking is unprincipled and dishonest.

It’s also worth noting from the same debate on the Hansard record:

13 Jan 2015 : Column 746

Caroline Lucas: Does the Chancellor agree with me that with the feeble and inconsistent opposition coming from the Labour Front Bench, there is a very good reason for seeing the SNP, the Greens and Plaid as the real opposition on this issue because we are clear and consistent about the fact that austerity is not working?

Mr Osborne: That shows why we want the hon. Lady’s party in the TV debates.

Yes, I just bet they do, to collaborate with the Tories in attacking and undermining the Labour Party, not the Coalition, who are, after all, the ones responsible for introducing austerity measures. I don’t imagine for a moment that Osborne values further challenges to his outrageous claims of efficacy regarding austerity measures. What is very evident when you read through this debate, is that Ed Balls and a couple of other Labour MPs presented the ONLY challenges to Osborne on this matter, just to reiterate this important point.

10940505_767712909964906_6225427822143651262_n

It’s also worth bearing in mind that Ed Miliband established the International ANTI-austerity Alliance. Back in 2012, Miliband said: “There is a grip of centre-right leadership on Europe which has said there’s only one way forward and that’s austerity, and you’ve got to have a decisive move away from that.(See also: Labour leader Ed Miliband’s anti-austerity alliance will fight for the European dream.)

And why would Miliband be attending ANTI-austerity protests if he supported austerity?

Labour leader Ed Miliband speaks on stage at Hyde Park, during the TUC organised protest against austerity measures in London

 Labour leader Ed Miliband speaks on stage to over 150,000 at Hyde Park, during the TUC organised protest against austerity measures in London

It’s interesting to see the Chicago Tribune’s article: Ed Balls, UK’s anti-austerity finance chief in waiting.  Balls dismissed Osborne as a “downgraded chancellor”after Britain lost its triple-A credit rating.One of his main charges has been that the government is unfairly spreading the economic pain it deems necessary to fix the economy. Austerity cuts are the burden of the poorest.

Balls says that a decision to cut the top tax rate amounts to an unjustified “tax cut for millionaires”, whilst his party has been scathing of reform of the welfare system. A point echoed many times by Ed Miliband, too. Accusing the government of making lower or no income groups pay for the recovery while shielding the rich is a claim which strikes a chord with some voters who view Cameron and his government – many of whom were educated at the same top fee-paying school – as out of touch.

Caroline Lucas was born in Malvern to Conservative parents and attended Malvern Girls’ College (which became Malvern St James in 2006), a fee-paying private school. Ed Miliband, on the other hand, went to a comprehensive school. Polls also show that many voters approve of the government’s drive to rein in welfare costs and the government has demanded Labour spell out what it would do to fix the economy. They have, but with understandable caution.

Labour’s careful, costed and evidence-based policies include: a Bankers’ Bonus Tax; a Mansion Tax; repeal of the Bedroom Tax; a reversal of the Pension Tax relief that the Tories gifted to millionaires; a reversal of the Tory Tax cut for Hedge Funds; freezing gas and electricity bills for every home a the UK for at least 20 months; the big energy firms will be split up and governed by a new tougher regulator to end overcharging; banning exploitative zero hour contracts; introduction of a living wage (already introduced by some Labour councils); a reversal of the £107,000 tax break that the Tories have given to the millionaires; reintroduction of the 50p tax; scrapping George Osborne’s “Shares for Rights” scheme that has opened up a tax loophole of £1 billion; ensuring Water Companies place the poorest households on a Social Tariff that makes it easier for them to pay their Water Bills; breaking up the banks and separating retail banking from investment banking; introduction of measures to prevent corporate tax avoidance, scrapping the Profit Tax Cut (Corporation Tax) that George Osborne has already announced for 2015 and many more.

These are not austerity measures. They are strongly redistributive policies.

It’s difficult enough opposing the manipulative, lying authoritarian Conservative-led government, without having to constantly counter lies and smears from parties claiming to be on the left, too. Shame on the Green Party and the SNP.

As I have said elsewhere, there’s a clear gap between professed principles and their application amongst the parties that claim to be “real socialists”.  How can it be principled or moral (or “socialist” for that matter) to collaborate with the Tories in attempting to damage, smear and discredit the only viable option of removing the Tories from Office in May? Bearing in mind that many people are suffering profoundly, some have died as a consequence of Conservative-led policies, we can see what the Green Party’s priorities actually are, here.

They don’t include the best interests of citizens and consideration of their well-being, that’s for sure.

403898_365377090198492_976131366_nThanks to Robert Livingstone for his excellent memes.

Public perceptions of party positions on the political spectrum: Labour’s leftward shift under Ed Miliband, the Conservatives’ rightward swing since 2010.

Good to see the public generally don’t swallow the “allthesame” myth.

The Great Debt Lie and the Myth of the Structural Deficit

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The case for austerity measures rests on the Great Debt Lie and the myth of the structural deficit.

The 2008-9 recession was the worst we have experienced globally for sixty years, and it was predicted by no-one. The Labour Government responded to the global crisis with fiscal stimulus. From the start of the financial crisis, Labour took decisive and clear action (including temporarily cutting VAT to boost demand), and it has become increasingly clear that it was this decisive action that brought about the green shoots of recovery by the last quarter of 2009. (Radeke, 2009).

This, combined with the usual effects on GDP of a recession, meant that the budget deficit rose. But without such swift action we simply would not have the signs of tentative recovery that we saw as a result. So what went wrong? What happened to the ‘green shoots of recovery’ that were carefully nurtured by the last Labour Government?

That would be the Tory-led Coaliton. The difference between the recession that happened under Labour and the one under the Tories is that the global banking crisis would have caused recession no matter which party was in office at the time, whereas the current recession is a ‘homegrown’ one that can be directly attributed to Conservative economic policy. Conservatives always cause recession, Margaret Thatcher did, John Major did, and now, David Cameron has.

This Government is cutting the very measures that would ensure not only growth in the short-term, but economic security in the future, too. They are portraying their cuts as ‘necessary’, eliminating ‘waste’,  and ‘efficient’, when in fact they are seriously jeopardising our future economic prosperity: cuts in funding for Regional Development Agencies; scrapping the Future Jobs Fund, which was a success and supported at least 200,000 people back into work through the recession; withdrawing industrial support, and the proposed and systematic cuts to public services, for example.

That is before we even begin to discuss the damning, detrimental economic and social implications of the welfare ‘reforms’ (CUTS), and the Localism Bill (more CUTS), and Legal Aid Bill (even more coordinated and carefully planned Tory CUTS that will serve to keep quiet and hide away subsequent evidence of the rising numbers of impoverished, destitute and starving victims of all of the other CUTS – and subsequent human rights abuses).

And there seems to be very little evidence to support their decisions. No facts, no consultation, no listening to expert advice. Just the ideology of the small state, propped up by notions of ‘self-reliance’ – but only for the poorest citizens of course –  being pursued by the Tory right and the Orange Book Liberals.

The Tory budget is highly regressive, hitting the poorest -people the hardest while asking for very little from those at the top.

Here are some facts which demolish the fallacy that the present economic crisis is the result of excessive spending, leading to unsustainable debt:

  •  Analysis by the Institute of Fiscal Studies (IFS) has concluded that on the eve of the financial crisis ‘the public finances were in a stronger position than they had been when Labour first came to power in 1997.
  •  Average annual spending and taxation were both lower as a proportion of GDP under the last 3 Labour Governments (38% and 35.4%) than under the 4 Conservative governments which preceded them (40% and 35.5%).
  •  National debt was lower as a proportion of GDP at the start of the financial crisis in 2008 (36%) than in 1997, the last year of John Major’s Conservative government (42%).  The national debt is forecast to hit 74.7% of GDP this year and peak at 79.9 per cent in 2015-16.
  • In 2010, the UK’s national debt as a proportion of GDP (52%) was the second lowest of the G7 countries.

The budget deficit is no more ‘structural’ than an overdraft in your bank account when you spend more than you earn. There is either a real deficit or not, and if there is, then it is due to either excessive spending or an inadequate tax take. The Conservatives like to reduce taxes for the wealthiest citizens.

Since it can easily be demonstrated that the problem is not the former, then it must be the latter – caused by the financial crisis and consequent recession and likely to be aggravated when taxes are cut later during this parliament to the benefit of high earners, corporations and banks.

As The Investors Chronicle states (15th February 2010): “The idea of a structural deficit serves a political rather than analytical function. It’s a pseudo-scientific concept which serves to legitimate what is in fact a pure judgement call – that borrowing needs cutting.”  

Osborne began to revive the myth of the structural deficit in June 2010, when it was becoming clear that the deficit would be under £155 billion, well below the Treasury’s £178 billion estimate made six months earlier.

In other words, the deficit was narrowing after Labour increased spending in 2009. The fact that the US, which has made no serious deficit reductions, has suffered almost the smallest recession of any major developed economy, whereas Ireland and Greece have suffered the worst because of drastic spending cuts further undermines the Government’s claim that radical austerity measures are needed – and shows that Osborne’s main aim is not to reduce the deficit but to accelerate the transfer of wealth to the already very rich.

And if anyone still wants to talk about a ‘structural’ deficit, then they should remember that the last 3 Labour Governments managed to earn enough to cover their spending for 4 of their 13 years in office, whereas Thatcher and Major only managed to balance the books for 2 out of 17 years.

The Coalition continue to deny that alternatives to austerity are viable. As a Tory lie repetition strategy, this is based on the idea Goebbels had –  repeated lies will somehow convince people that they are true. Cameron was busted when he repeatedly told the lie ‘We are paying down the debt.’ Despite being rumbled and rebuked, the Coalition have stuck with this lie doggedly.

The bonus of the lie is that it may undermine the Opposition’s economic credibility, and the Conservatives particularly delight in the lie that it’s all Labour’s fault because they ‘overspent’ as it further justifies austerity measures and starving public services of lifeline government funding with our paid taxes, as well as stripping our welfare provision away. There will be more cuts to come, too.

It was the Tories that lost the Moody’s Investors Service triple A grade, despite pledges to keep it secure. Moody’s credit ratings represent a rank-ordering of creditworthiness, or expected loss. The Fitch credit rating was also downgraded due to increased borrowing by the Tories, who have borrowed more in 4 years than Labour did in 13.

The Coalition have REALLY messed up the economy. We know it’s a big fat Tory lie that cutting spending at a time of economic recession will re-balance public finances. As many academics and economists have stated, cutting spending when the economy is flat is likely to cause further contraction to the economy, and that will negatively affect public finances, rather than help at all.

The Government will never confess to this because they are so tightly ideologically bound to an übertreiben Neoliberalism, no matter what the cost is in human terms, or even in economic terms. What we need is Labour’s expansionary fiscal policies, not contractionary ones.

Real, sensible economists (and not the token greedy businessmen the Conservatves trot out to address the public with neoliberal ideology) know that the only way to address a recession is to grow the economy, and that means more public spending in the short term to stimulate economic activity and cutting if needed when the economy is back on the up (which needn’t mean absolute cuts, but relative cuts because the economy is growing).

Related

The OBR rebukes Cameron for claiming that austerity has not hit growth

The Tories continue to blame the previous Labour Government for its own actions  – The Blame Game

Letter from Chair of the UK Statistics Authority, Andrew Dilnot to Labour’s Rachel Reeves – Public sector net debt and net borrowing

Cameron rebuked by the UK Statistics Agency chief Andrew Dilnot – Dear Prime Minister

Investors around the world are putting their trust in the only Labour government in the UK – Investors give thumbs up to Labour

Tory Coalition set to borrow more in five years than Labour in 13. Conservative Mark Field confirms.

A list of official rebukes for Tory lies .

Labour’s economic record given clean bill of health at home and abroad

“The economic situation explained in 3 minutes. Tory austerity has given us the slowest recovery since the South Sea Bubble. Professor David Blanchflower absolutely slaughters Cameron over his pre-excuse warning over the world economy, he blames Tory austerity for tanking Britain’s economy and preventing a recovery, and states that any recovery we do have is simply part of the cycle as long as you don’t wreck it with austerity, and confirms that our economy was on the RISE in 2009 / 2010.” From The World At One, Radio 4, 17th November, 2014.

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Many thanks to Robert Livingstone for translating my comment into a meme

All facts and figures used here have since been fact checked by Factcheck.


 

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