Tag: culture of entitlement

Financial advisors and millionaires are preparing for a Labour government led by Corbyn

30 years of plutocracy have brought un-representative democracy

Back in 2013, I wrote an article, together with Richard Murphy, director of Tax Research UK, which was about a chilling proto-fascist document written by JP Morgan – it can be accessed here: The Euro Area Adjustment—About Half-Way There.

Firstly, the authors said that ‘financial measures’ are ‘necessary’ to ensure that major investment houses such as JP Morgan can continue to reap huge profits from their speculative activities in Europe.

Secondly, the authors maintain, it is necessary to impose ‘political reforms’ aimed at suppressing opposition to the massively unpopular austerity measures being imposed at the behest of the banks and financial sector. 

The authors write: “The political systems in the periphery were established in the aftermath of dictatorship, and were defined by that experience. Constitutions tend to show a strong socialist influence, reflecting the political strength that left-wing parties gained after the defeat of fascism [following world war 2].

“Political systems around the periphery typically display several of the following features: weak executives; weak central states relative to regions; constitutional protection of labour rights; consensus-building systems which foster political clientalism; and the right to protest if unwelcome changes are made to the political status quo. The shortcomings of this political legacy have been revealed by the [eurozone] crisis.”

Whatever the historical inaccuracies in their analysis, there can not be the slightest doubt that the authors of the JP Morgan report are arguing for governments to adopt authoritarianism to complete the process of social counterrevolution to austerity that is already well underway across Europe.

What JP Morgan is making very clear is that anything resembling ‘socialism’, representative ‘democracy’, collectivism, trade unionism or inclinations towards the left of the spectrum must be removed from political structure: localism must be replaced with strong, central authority; labour rights must be removed, consensus (democracy) and the right to protest must be curtailed.

In short, JP Morgan are calling for extremely authoritarian measures to suppress the working class and wipe out its social gains since the post-war settlement. This is the proto-fascism and reflects the unadulterated antisocial voice of  neoliberalism, which is incompatible with human rights, social liberalism and democracy.

JP Morgan are not a lone voice making such demands. In the UK, savage welfare cuts have driven some disabled individuals to fear for their lives. But the austerity programme also has a few winners. Cutting or eliminating publicly funded support programmes that support the poorest citizens, those who fall on hard times, has long been an ideological goal of Conservatives.

Doing so also generates a tidy windfall for the corporate class, as the ‘business friendly’ government services are privatised and savings from austerity pay for tax cuts for the wealthiest citizens. The liberalisation that the financial class demand – what bankers call deregulation – is the process that caused the financial crash.

Many of us have said over the last eight years that austerity is not an economic necessity or ‘in the national interest’ as was claimed in 2010, and it is more like a tool of ‘statecraft’ and radical socioeconomic re-engineering, driven entirely by ideology and not economic requirements. 

You can read my 2013 article here.

Now for more of the same

In a truly nauseating article in the Financial Times (FT) titled How to hedge your finances against a future Corbyn governmentfinancial ‘advisors’ are cowering in outraged ‘fear’ at the prospect of a Labour government. They are very worried that a few millionaires may face a capital gains tax rise, property taxes and other erosions to the generous privileges they have become accustomed to over the last few years.

Gosh, fancy that, having to contribute a fair amount of tax towards maintaining a country that the rich have taken so much from. Yet they don’t want to contribute anything to the society that has benefited them so much. 

I can really empathise with their ‘fears’. I mean, that’s almost as bad as having to join the foodbank queue because your wage doesn’t meet the cost of living, or even your most fundamental survival needs. I can see why they would be left cowering in fear behind their hoarded wealth. 

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This despicable class of people, who regard most of their fellow human beings as disposable commodities, have had their own way for far too long. They have institutionalised their power through law, media, and corrupt political rituals, and have become habituated to the status quo.

The FT says “They might be considered unlikely to vote for Jeremy Corbyn, but the rising popularity of the Labour leader is rapidly moving up the agenda in conversations between the UK’s wealthiest and their financial advisers. In the event that he came to power, what impact might future Labour policies have on their wealth? And secondly, what financial planning measures — if any — could be considered to mitigate these?

Well you could be less controlling and anally retentive. Less pathological about wealth defense. You just let go and stop hoarding obscene amounts of money. You could care about the suffering inflicted on others so that you can stash your cash offshore, leaving a black hole in the economy and our public services on the point of collapse, because of ever-circling vulture capitalist parasites like you.

George Bull of RSM, the accountancy firm, says: “these fears are well-founded, as Labour’s 2017 manifesto mentioned wealth taxes as one option for easing the care cost crunch.”

Oh, the sheer horror of it. I mean fancy having to give a shit for the people who have been brutally dispossessed by the state in order to fuel the accumulation of even more wealth for the already very very wealthy. How outrageous. 

The article goes on to say:  “Should a mis-step in the Brexit negotiations topple the existing administration, this could prompt a fresh election which many believe Mr Corbyn could win.”

Yes, and your very worst fear has been realised. The PM’s Brexit deal was rejected by 230 votes – the largest defeat for a sitting government in history. It takes a very special sort of skill to unite so many people against your proposals. Dis may.

Yet curiously, despite the vote of no confidence tabled by Corbyn, the BBC are claiming that the Pound rises after ‘meaningful’ Brexit vote and crashing defeat for the PM.

The BBC then claim the “vote opens up a range of outcomes, including no deal, a renegotiation of May’s deal, or a second referendum.” However, the BBC don’t mention the rather obvious other possibility – a General Election, which is more than a little short sighted of them.

Even if we assume that a no confidence motion may not force an election , it would be prudent to consider Wednesday’s vote as the start of a process. The shadow international trade secretary Barry Gardiner has suggested the PM could face a series of confidence votes in the coming weeks. In fact that is highly likely, since she does not command a majority and will struggle getting anything through parliament.

Apparently, sterling rose 0.05% to $1.287 after declines of more than 1% earlier in the day. The currency slumped 7% in 2018 reflecting uncertainty about the terms of the UK’s exit from the European Union. 

“A defeat has been broadly anticipated in markets since the agreement with the EU was closed in November 2018 and caused several members of the government to resign,” said Richard Falkenhall, senior FX strategist at SEB. The BBC says that “business groups said their members’ patience was wearing thin.”  

On Friday, hedge fund manager Crispin Odey, a major donor to the Brexit campaign, said he now expected the project to be abandoned altogether and that he is “positioning for the pound to strengthen.”

The real culture of entitlement

The very wealthiest are likely to find ways to circumvent increased taxes on those on the highest incomes. I guess rich  people don’t like  ‘progressive’ tax , well-funded and functioning and effective public services 

Bull continues: “There is no certainty as to what people might do.

“However, we hear far greater interest about lifetime tax planning — for example, gifts of assets to children being made sooner rather than later — so that parents’ asset values are reduced before a wealth tax or land value tax takes force.”

“The favourable inheritance tax status of defined contribution pensions, which can currently be passed tax free to heirs in some circumstances, is something many advisers fear the current government will scrap, let alone a Labour one. Higher-rate tax relief on pensions contributions is another obvious area of vulnerability, advisers say.”

Vulnerability? I guess that’s pretty relative. Ask those people targeted by austerity policies from 2010, which saw them lose their lifeline support while at the same time, the chancellor handed out £107,000 each per year to millionaires in the form of a tax cut. People have died because the government’s austerity policies. Get a grip.

My favourite part was this:  

“The Labour party has also signalled its intention to close various loopholes and tax breaks, as well as ending “the social scourge of tax avoidance”. It has signalled that it would make public the tax returns of those earning more than £1m a year and double the number of HMRC staff investigating wealthy tax avoiders.

“It might also increase the insurance premium tax on private healthcare. The rate of corporation tax would be restored to 26 per cent. In addition, a Labour government might tackle tax planning that takes advantage of the gap between income and corporate tax rates, such as the practice of holding investments within a company.

“One possibility is that the undistributed profits of “ close” companies— those controlled by five or fewer people — could be taxed as though they had been distributed to shareholders. 

“Labour has said it wants to see the public disclosure of trusts, which it describes as “a key vehicle for tax avoidance and illicit financial flows”. The industry says HMRC already has access to this information and making it public would put beneficiaries in a vulnerable position. 

“People avoiding tax by using trusts would fear “trial by media”.

“It would be a witch hunt. People might want to consider unwinding those structures.”

My heart bleeds. Like the ‘trial by media’ that unemployed and disabled people faced in the run up to the brutal and uncivilised cuts to the social security that the overwhelming majority of them had paid into via taxes? And all to justify a transfer of wealth from public funds to a few private bank accounts, a proportion of those being offshore.

The hysteria continued: “Labour’s plans to nationalise railways, water, energy and Royal Mail would take a toll on those segments of the market. And Mr Corbyn’s aim to intervene more heavily in areas such as energy could drag on the dividends paid by those companies and investment funds.”

But it would benefit the public. You know, the many, not the few.

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Job Curtis, a Henderson fund manager, says: “We are already beginning to see weakness in companies involved in passenger transport and water utilities. United Utilities — a water company covering the north west of England, has experienced a large share price fall in the last year partly because of the increased likelihood of a Labour government under Corbyn.”

“Sectors including utilities and energy companies are high dividend payers and whether it’s nationalisation or increased regulation and price caps, the outlook for higher and sustainably high dividend incomes looks under threat under a Corbyn government,” says Mr Stevenson. 

But many of us will be able to afford our utility bills.

Henry Pryor, an independent buying agent, whines the prospect of a Labour government is “frightening” for the owners of large, expensive assets. I think Henry should really try to expand his understanding of the word “frightening”.

I suggest he asks citizens for some insights, perhaps those with severe illness who are forced to claim disability support after a lifetime of working and paying social insurance via taxes, then he should go through mandatory review and the appeal process. That’s fear. Or perhaps he should spend a year on the streets, without the safety of his wealth and assets. 

 That said, perhaps the pitchforks really are coming…

Nick Hanauer is a rich guy, an unrepentant capitalist — and he has something to say to his fellow plutocrats: Growing inequality is about to push our societies into conditions resembling pre-revolutionary France.

 

You can sign the petition (here) to register your own no confidence in Theresa May’s government, and demand a general election. Only 557 more signatures are needed, as the response overnight has been overwhelming. 


 

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Follow the Money: Tory ideology is all about handouts to the wealthy that are funded by the poor

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Here is yet another great Tory lie exposed – “Making work pay”. This Government have raided our tax-funded welfare provision and used it to provide handouts to the very wealthy – £107, 000 EACH PER YEAR in the form of a tax cut for millionaires. The Conservatives claim that it is “unfair” that people on benefits are “better off” than those in work. But the benefit cuts are having a dire impact on workers as well.

People in work, especially those who are paid low wages, often claim benefits. Housing benefit, tax credit and council tax benefit are examples of benefits that are paid to people with jobs. Indeed the number of working people claiming housing benefit has risen by 86 percent in three years, which debunks another Tory myth that benefits are payable only to the “feckless” unemployed.

By portraying housing benefit as a payment for “the shirkers”, not “the strivers”, Cameron and Osborne aim to convince the public that their draconian, unprecedented welfare “reforms” are justified. 60 percent of people visiting food banks last year were in work. But unemployment benefits are just 13 percent of the national average earnings. What Cameron’s Government have done is created extreme hardship for many of those in work, and further severe hardship for those who are unemployed.

“Making work pay” is a big lie that has benefited no-one but the very wealthy, and the reduction in both the value and the amount of welfare support for unemployed individuals has come at a time when we are witnessing steady reductions in worker’s rightsand worryingly, the Tory-led Government is stepping up its attack on employment health and safety regulations. And the unions.

Last week, on the 25th April 2013, the Enterprise and Regulatory Reform Bill was granted royal assent, bringing into law the Government’s widely unpopular proposals to scrap employers’ 114-year-old liability for their staff’s health and safety in the workplace. This steady erosion of our fundamental and hard-earned rights in the workplace is linked to the steady erosion of the basic human rights of the poorest citizens. The Government have liberated wealthy private companies of any moral or legal responsibilities, so that they can simply generate vast profits by exploiting workers who have increasingly fewer means of redress.

There is also a growing reserve army of labour that may be exploited via the workfare schemes. This will mean that unscrupulous, greedy, profit-driven employers will increasingly replace paid workers with unpaid ones that are forced to work for their benefits or face losing them. This is a politically enforced programme of reducing the population’s expectations regarding choice, opportunities, rights, and quality of life.

A recent proposal from our “caring Conservatives” is that new in-work claimants should be required to attend an initial interview at a Job Centre “where a conditionality regime should be set up to ensure the individual is doing all they can to increase their hours and earnings”.

Claimants “should then be forced to attend a quarterly meeting to be reminded of their “responsibility” to try to increase their earnings”, with sanctions applied for failing to attend. This may well be the next stage of the welfare “reforms”, incorporating a punitive approach to those in work on low hours or low pay, as well as those unfortunate enough to be out of work.

There is absolutely no evidence, sense or logic behind the Tory claim that cutting welfare will “make work pay”. Well, unless we are referring to the greedy employers that will benefit and profit from the welfare “reforms” and reduction in worker’s pay level and rights. This is about gross exploitation and profiteering at any cost to human lives.

“Making work pay” is an entirely ideologically-driven, dogmatic, absurd and reductionist Conservative superficial soundbite. There is certainly an essence of all that is Tory in the word “peremptory”. There is also many a Tory donor in private business that wants to see more profit and a more abject workforce.

The real “culture of entitlement” is not to be found among poor citizens, those who are unemployed, sick and disabled citzens, as this Government would have you believe. As a matter of fact, most amongst this politically demarcated social group have paid tax and paid for the provision that they ought to be able to rely on when they/we have need of it, it’s ours, after all. The real culture of entitlement emanates from the very wealthy, and is well-fed and sustained by an aristocratic and authoritarian Government.

Every time we have periods of high unemployment, growing inequalities, substantial increases in poverty, and loss of protective rights, there is a Conservative administration behind this wilful destruction of people’s lives, and the unravelling of many years of essential social progress and civilised development that spans more than one century in ontogeny and maturation.

The Conservatives lied about our “generous welfare”. It wasn’t and it certainly isn’t now. Coming at the same time that severe cuts to tax credits and benefits are set to make an estimated 11.5 million households poorer, the Chancellor was accused by Britain’s largest union, Unite, of conducting class war on the poor while giving handouts to the rich.

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

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In addition, wages have not risen in real terms since 2003 and there are further fears that the Government is trying to pressurise the Low Pay Commission into cutting the national minimum wage from its present £6.19 per hour. At a time when the cost of living has risen so steeply, the Government has also increased VAT.

Commenting, general secretary Len McCluskey of Unite said: “Millionaires will be raising a glass of champagne to George Osborne this weekend as he slashes the incomes of people struggling to get by to give handouts to the rich.”

“But ordinary people – taxpayers – will be furious that George Osborne has chosen to give away £1 billion to the super-rich while their fuel and food costs rise and wages are falling”.

“His party knows no shame. They are trying to claim that their tax cuts benefit ordinary people but this is another lie – the truth is that while those earning over £1 million per year will be an average £100,000 better off, low income families will be around £900 worse off.”

“This is not the way to recover our failing economy.  Creating real jobs and paying decent wages, including a one pound increase on the minimum wage, will bring down the benefits bill and get people spending again.”

“Instead of getting on with the job he ought to be doing, like sorting out the problems he has caused to our economy, Osborne prefers to encourage hatred and demonise the poor, both in and out of work, in an ideological attack on our welfare state.”

Ed Miliband said: “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.”

Bravo Ed, a very well spotted contradiction regarding Cameron’s claims about how “incentives” work. Apparently, the rich are a different kind of human from the majority of human beings.

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

  • Rising wealth – 50 richest people from this region increased their wealth by £3.46 billion last year to a record £28.5 billion.
  • Falling taxes – top rate of tax cut from 50% to 45% for those earning over £150,000 a year. This is 1% of the population who earn 13% of the income.
  • No mansion tax and caps on council tax mean that the highest value properties are taxed proportionately less than average houses.
  • Benefited most from Quantitative Easing (QE) – the Bank of England say that as 50% of households have little or no financial assets, almost all the financial benefit of QE was for the wealthiest 50% of households, with the wealthiest 10% taking the lions share
  • Tax free living – extremely wealthy individuals can access tax avoidance schemes which contribute to the £25bn of tax which is avoided every year, as profits are shifted offshore to join the estimated £13 trillion of assets siphoned off from our economy.

It’s plain to see that Cameron rewards his wealthy friends, and has a clear elitist agenda, while he funds his friends and sponsors by stealing money from the taxpayer, by stripping welfare provision and public services down to bare bones.

A simple truth is that poverty happens because some people are very, very rich. That happens ultimately because of Government policies that create, sustain and extend inequalities. The very wealthy are becoming wealthier, the poorest are becoming poorer. This is a consequence of  “vulture capitalism”, designed by the opportunism and greed of a few, it is instituted, facilitated and directed by the Tory-led  Coalition.  

Welfare provision was paid for by the public, via tax and NI contributions. It is not a “handout.” It is not the Governments money to cut. That is our provision, paid for by us to support us if and when we need it. It’s the same with the National Health Service. Public services and provisions do not and never did belong to the Government to sell off, to make a profit from, and to strip bare as they have done

Low wages and low benefit levels, rising unemployment and a high cost of living are major causes of poverty. (“worklessness” is a made-up word to imply that the consequences of Government policies are somehow the fault of the victims of this traditional Tory harshness. It’s a psychological and linguistic attack on the poorest, disabled people and the most vulnerable citizens – blaming the unemployed for unemployment, and the poor for poverty.)

Those are a direct consequence of Coalition policies. The Coalition take money from those who need it most to give away to those who need it least. That causes poverty, and cannot fail to create growing inequality. The Coalition are creating more poverty via the class-contingent consequences of policies.

It’s time to debunk the great myth of meritocracy. Wealth has got nothing whatsoever to do with “striving” and hard work. If it were so simple, then most of the poor would be billionaires by now. 

This week it was reported that one school liaison officer told how a parent came to her pleading for help because her children were suffering from SCURVY – a potentially fatal condition caused by a severe Vitamin C deficiency. It’s an illness linked with malnutrition and poverty, and has seldom been seen in this Country for most of this century, due to improvements in medical knowledge, and the development of adequate welfare provision – that had eliminated absolute poverty in Britain. Until now. It’s increasing again.

We now have pre-Victorian Health and Safety laws in the workplace. We have Victorian malnutrition and illnesses such as scurvy and rickets. Malnutrition has resurfaced because of the re-appearance of absolute poverty – something that was eradicated because of our effective, essential welfare program, until now. We have a punitive Poor Law approach to “supporting” the poorest instead of welfare provision. These ideas and subsequent harsh and punitive policies were a dark part of our history, and now they have been resurrected by the Tories to be a part of our future. It’s social regression.

We have recession and austerity, entirely manufactured, based on ideology and not because of any economic necessity. Austerity does not include and affect the very privileged. Indeed they have benefited immensely from the politically engineered economic situation.  We have a society that has been lulled into forgetting equality, decency and fairness. We have a lying authoritarian Government that created a crisis for many to make profiteering opportunities for a few.

The New Poor Law of 1834 was based on the “principle of less eligibility,” which stipulated that the condition of the “able-bodied pauper” on relief be less “eligible” – that is, less desirable, less favourable – than the condition of the independent labourer. “Less-eligibility” meant not only that the pauper receive less by way of relief than the labourer did from his wages but also that he receive it in such a way (in the workhouse, for example) as to make pauperism less respectable than work – to stigmatise it. Thus the labourer would be discouraged from lapsing into a state of “dependency” and the pauper would be encouraged to work.

The Poor Law “made work pay”, in other words.

The clocks stopped the moment that the Tories took Office. Now their policies mean that we are losing a decade a day.

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 Pictures courtesy of Robert Livingstone

Further reading:

Conservatism in a nutshell

Families £900 Per Year Worse Off After Benefit And Tax Changes, Says Labour’s Ed Balls

Labour exposes Osborne’s tax cut for bankers

A catalogue of failure and broken promises-Catherine Mckinnell MP’s verdict on George Osborne’s autumn statement

The poverty of responsibility and the politics of blame 

“We are raising more money for the rich” – an analysis