Monday, November 3, 2008

Layer 85 The Class Divide, The State We’re In, and the Democratic Crunch

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Radio 4 - Today

"New research published by Downing Street suggests that Labour policies may be narrowing Britain's class divide. The study, from academics at Bristol University and the London School of Economics, finds that family background appears to have less influence on educational attainment than it once did. Shadow work and pensions secretary Chris Grayling discusses the report with Cabinet Office Minister Liam Byrne. "

So how, exactly, are these ‘policies’ narrowing the ‘class divide’? Here we go again - educational attainment - GCSEs and SATs. The conflation of academic attainment and social mobility? That must be it. Such a pity the Beeb puts such rubbish on its website.

Messrs Grayling and Byrne, aided and abetted by the man from Today, waffled on about whether there’s now a less well-defined correlation between family background and doing well in tests and exams, all of them unquestioningly going along with the ‘common sense’ assumption that academic success is the key determiner of success in life - meaning material success, of course.

So who really believes that child poverty (and its related afflictions - stress, ill-health, etc,) isn’t the key issue when it comes to doing well in school, by whatever measures we might use, and also doing well in life?

Well then, enough of this nonsense and let us focus on something more worthy of attention. Which is - why do these discussions NEVER consider the real factors that determine whether someone will live an authentic, creative and worthwhile life - these factors being the extent to which young people:

1) Become life-long learners who enjoy learning for its own sake
2) Are creative and imaginative
3) Are high in social, emotional and spiritual intelligence.
4) Have high self-confidence and self-esteem.

Assuming that they move on from school possessing high levels of the above then they will always have the option of doing further studies, either part-time or full-time, and moving up the academic ladder towards whatever qualifications they need to pursue their ambitions.
Without these qualities and achievements then it won’t matter that they have 5 A-C grades, or whatever - they will never achieve self-actualisation or achieve fulfillment, or indeed reach their full potential.

So why don’t these pundits address the real issues in education and the development of human potential? Who bothers to track how well schools and pupils are progressing in these four key areas?

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Failure to address the real issues in the economy and world-wide financial systems have put us in the current crisis, and as I’ve been saying, Will Hutton’s masterwork, The State We’re In, set out all the real issues back in the mid-90’s. It’s pathetic and shameful that New Labour has failed to address any of them, being totally sucked into the neo-conservative ideology and mindset.

In last weekend’s Observer Mr Hutton posted his usual excellent column, focusing on the need to pursue ‘real’ Keynesian policies in order to deal with the crisis and the recession.

http://www.guardian.co.uk/commentisfree/2008/nov/02/economics-economy-john-keynes

“The great economist is back in fashion, but it will be a disaster if his brilliant theories are now misapplied.

For Keynes, the interaction of the financial system with the real economy is capitalism's existential problem.

The job of finance is to recycle savings back into investment and so sustain overall levels of demand, production and employment at a balanced rate.

Intervention in the financial markets - regulatory, institutional, via monetary policy and in collaboration with other governments - is vital. The socialisation of the financial system may, paradoxically, be an imperative to save capitalism. Contra-cyclical government borrowing in recessions may be helpful. But the big game is to do everything you can to stimulate private sector credit flows.

Keynes would be completely unsurprised by today's events; he would have spent the previous decade warning of the existential danger posed by the mania for financial deregulation.
Keynes was the economist who put it all together, the liberal who understood why free [deregulated] finance is capitalism's greatest enemy.


The State We're In was my attempt to devise a Keynesianism for our own times. I will stand by the heart of the book - deregulate financial markets and create a financial system that dominates business at your peril - to my last. But there was no constituency for reform 10 years ago. Keynesians of my ilk were seen as irrelevant and wrong.

But now, with Keynes back in fashion, if we don't do Keynesianism right, we risk a very nasty recession indeed.

There are only weeks left before the downward vortex becomes irretrievably deep.

These are very scary times. Let’s hope someone in government is finally paying attention to Mr Hutton.

More quotes from The State We’re In to follow.

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Tomorrow’s D-Day for Barak Obama. The latest news bulletin says he has a lead of between 8 and 11 points. Let’s hope all goes well.

His grandmother died today.
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“This is not just an economic crisis, it is a crisis of democracy”, say Jon Cruddas and Jonathan Rutherford in last Saturday’s Guardian.

“New Labour thrived on good times and bull markets. The culture of easy credit and consumerism disguised its evasions of class and power. Now the markets are in freefall, and its ideological failings are brutally exposed. In the manors and town houses of the super-rich those who have brought about the calamity harbour their wealth. They are untouchable and unaccountable. Their tax havens are sacrosanct. Corfu reveals how our political elites, seduced by their opulence and power, do business with them. This is not just an economic crisis, it is a crisis of democracy.

Collective political action and the power of citizenship have been traded in for the ownership society.

The stakes are high. Who will pay for this recession - capital or labour? The Labour party must reinvent itself for this battle.

There are no easy solutions, but the goal is simple: a fundamental transfer of wealth and power back to the people. This will help stop the deflationary spiral and lay the foundations for a more just, sustainable and equal society in the future.

We need urgent action to address the housing crisis, which is replicating that in banking.
This is market failure on a grand scale.


The state must step in with an emergency public-sector housebuilding strategy, and if necessary, take a stake in some housebuilders to revive the sector. Local government must be re-empowered to fill the space vacated by the private sector.

The relationship between market and state is being redrawn. Nowhere is this more needed than in housing. This is where the battle lines are being drawn up. The left must create a democratic and accountable state capable of strategic intervention in the domestic economy and creating global alliances. A new settlement means a progressive tax system, a restructured financial economy and a Green New Deal. Ahead lie the perils of global warming and peak oil. But now let us give homes to people, and with them the hope of a better life.

http://www.guardian.co.uk/commentisfree/2008/nov/01/labour-housing
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On a lighter note, I had another look at last week’s episode of Brand’s Ponderland. You must try to catch it on the C4 website before Thursday. Hilarious.

Also good for a chuckle - Martin Kelner’s column on the back of the Guardian’s sport section: “Even wrestling honeys can't stir my libido”

http://www.guardian.co.uk/sport/blog/2008/nov/03/1
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