Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

Sunday, March 18, 2012

Layer 530 . . . The Questioning of Capitalism, and Culture after the Credit Crunch



There was an interesting piece in the Guardian yesterday which readers of Layer 528 might want to pick up on. It sheds some more light on the state of post-apartheid South Africa, and the reasons why a country that so many of us had such great hopes for is so fucked. You just have to wonder what Mandela and Tutu make of it all. Are they writing about it now? And do their views carry any weight?

On page 5 of The Review, in "The Week In Books", John Dugdale writes about Nadine Gordimer, who was in London this week.
What Gordimer, 88, was keen to talk about was censorship, and a current threat to freedom of expression in her country, which she called "an updated version of the gags under apartheid". 
One element of this is a media tribunal that requires journalists to seek permission before, for example, investigating a government minister's activities.
Then there is the Protection of State Information bill, which clamps down on whistle-blowing. For Gordimer, both moves are designed to shield an ANC elite who have "betrayed all they fought for".

As pointed out in the recent blog, the betrayal took place almost from the outset, and it continues to this day - thanks to the stupidity, greed, selfishness and ignorance of those who were supposed to be the leaders and liberators.

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Also in this weekend's Review is a brilliant whole-page article by Marilynne Robinson, which is almost too depressing to read. The USA, like South Africa, was supposed to be a new light in the world - a beacon of hope which showed the way forward for people to overthrow oppression and colonialism and build a society based on freedom and justice. Instead, it's fucked.

Culture after the credit crunch
The financial crisis has not led to a questioning of capitalism. Rather, hard times have brought even sharper attacks on 'big government'. In the US anything public equals 'socialism'
 http://www.guardian.co.uk/books/2012/mar/16/culture-credit-crunch-marilynne-robinson
Fear is the motive behind most self-inflicted harm. Western society at its best expresses the serene sort of courage that allows us to grant one another real safety, real autonomy, the means to think and act as judgment and conscience dictate. It assumes that this great mutual courtesy will bear its best fruit if we respect, educate, inform, and trust one another. 
This is the ethos that is at risk as the civil institutions in which it is realised increasingly come under attack by the real and imagined urgencies of the moment. We were centuries in building these courtesies. Without them "western civilisation" would be an empty phrase.
Austerity is the big word throughout the west these days, with the implicit claim that what ever the Austerity managers take to be inessential is inessential indeed, and that what ever can be transformed from public wealth into private affluence is suddenly an insupportable public burden and should and must be put on the block. 
Everywhere the crisis of the private financial system has been transformed into a tale of slovenly and overweening government that perpetuates and is perpetuated by a dependent and demanding population. This is an amazing transformation of the terms in which our circumstance is to be understood. 
For about 10 days the crisis was interpreted as a consequence of the ineptitude of the highly paid, and then it transmogrified into a grudge against the populace at large, whose lassitude was bearing the society down to ruin.
Austerity has been turned against institutions and customs that have been major engines of wealth creation, because they are anomalous in terms of a radically simple economics. [See all previous blogs on Disaster Capitalism, Chicago-School economics, The Shock Doctrine and Naomi Klein.]
As a professor at a public university I feel the effects of this. Of course legislators are also state employees, but for the moment they are taken to act in the public interest when they attack the public sector. If they were to tell us taxpayers how they spend their time, fiscal demolition would account for a great part of it. 
The phenomenon is national, indeed global, since every entity with leverage on any other is bringing the same sort of pressure to bear. The countries we now call "developing" have dealt with this for many years – as often as the international financial institutions have decided that their economic houses need to be put in order. Their cultural and political integrity has been overridden whenever these agencies have invoked the supposedly unanswerable authority of economics. And now the west is seeing its own cultures and politics, indeed its modern social history, erased on these same grounds.

[Of course the 'agencies' and institutions referred to here are the International Monetary Fund, the World Bank and the World Trade Organisation.]

It is this supranational power . . . that failed us all in fairly recent memory. It has emerged from the ashes with its power and its prestige enhanced even beyond the status it enjoyed in the days of the great bubble. The instability and the destruction of wealth for which it is responsible actually lend new urgency to its behests. 
This makes no sense at all. Certainly its authority with the public aligns badly with any conception of rational choice, which is supposedly a pillar of this self-same economic theory. It can proceed confidently, and moralistically, in the face of common sense and painful experience because it is an ideology, the one we are supposed to believe was the champion of freedom and prosperity in the epic struggle called the cold war. 
If there was such a champion, might it not have been freedom itself, as realised in the institutional forms of democracy? That is not how the story has been told. We are to believe it was an economic system, capitalism, that arrayed its forces against its opposite, communism, and rescued all we hold dear. Yet in the new era, market economics – another name for the set of theories and assumptions also called capitalism – has shown itself very ready to devour what we hold dear, if the list can be taken to include culture, education, the environment, and the sciences, as well as the peace and wellbeing of our fellow citizens.
The wealth that was once frozen in appreciated value and thawed at the discretion of the owner, in homes, notably, is now, increasingly, liquid in the hands of international financial institutions. 
To project debt forward as the Austerity mongers do is to assume a predictable future economy, essentially a zerosum economy which can only increase wealth by depressing costs – wages, safety standards, taxes – that is to say, by moving wealth away from the general population. This prophecy will fulfil itself as education is curtailed and "reformed" to discourage intellectual autonomy, and so on. The new sense of insecurity, the awareness that the rules have suddenly changed, has a meaningful segment of the population furious at government and desperate to be rid of the institutions that enable a culture of innovation.
In any case, in America an abstraction called capitalism has truly begun to function as an ideology. The word is not included in the 1882 edition of Webster's dictionary, and in the latest Oxford English Dictionary capitalism is simply defined as "a system which favours the existence of capitalists", as the self-declared socialisms of western Europe have always done. 
In contemporary America it has taken on the definition, and the character, Marx gave it, and Mao, and all the pro-Soviet polemicists. This despite the fact that Marx did not consider the United States of his time essentially capitalist. This despite the fact that the United States as a society is structured around any number of institutions that are not, under this definition, capitalist. 
Suddenly anything public is "socialism", therefore a deviancy, inevitably second-rate, and a corruption of, so to speak, the public virtue. If I could find any gleam of intelligence or reflection in all this, or any sign of successful education, I would be happy to admire it, so passionate are my loyalties. Failing this, I am left to ponder again the fact that this post-Soviet America has turned against its own culture and has seen cleavages in its own population that can only rejoice its most fervent ill-wishers. This is an ideal atmosphere for the flourishing of Austerity, punitive yet salvific, patriotic in its contempt for the thought and the values of those of its countrymen who have doubts as to its wisdom, especially if they express their doubts in the press or at the polls.
At very best there are two major problems with ideology. The first is that it does not represent or conform to or even address reality. It is a straightedge ruler in a fractal universe. And the second is that it inspires in its believers the notion that the fault here lies with miscreant fact, which should therefore be conformed to the requirements of theory by all means necessary. To the ideologue this would amount to putting the world right, ridding it of ambiguity and of those tedious and endless moral and ethical questions that dog us through life, and that those around us so rarely answer to our satisfaction. 
Anger and self-righteousness combined with cynicism about the world as he or she sees it are the marks of the ideologue. There is always an element of nostalgia, too, because the ideologue is confident that he or she is moved by a special loyalty to a natural order, or to a good and normative past, which others defy or betray.
The march of Austerity, with all that means, is international. Historically there is nothing new about it. It is an assertion and a consolidation of power, capable of cancelling out custom and social accommodation. It claims the force of necessity. And when necessity is to be dealt with, other considerations must be put aside. We in the west have created societies that, by historical standards, may be called humane. We have done this gradually, through the workings of our politics. Under the banner of necessity it can all be swept away.


Tuesday, March 13, 2012

Layer 529 . . . The Madness of Queen Melanie



One thing you can say about Melanie Phillips - you always know where you stand with her. And where you stand is clearly to the left of her, since it's impossible to go any further to the right. She stands firmly next to the starboard wall of reality, and sometimes beyond it.

Take her column in yesterday's Daily Fail.

http://www.dailymail.co.uk/debate/article-2113576/Infantile-Lib-Dems-cynical-Cameroons-plot-squeeze-middle-classes-dry.html

Infantile Lib Dems, cynical Cameroons and a plot to squeeze the middle classes dry

That says it all, really. You don't need to go any further. Her madness perceives a dastardly plot to "squeeze the middle classes dry" - whatever that means. What's more, the plot is being hatched by those infantile LibDems and their partners - the Cameron-led clique of Etonians and Bullingdon Clubbers - a well known faction of leftists, anarchists and commies. This is the crazy world of La Phillips, which the Mail pays huge sums of money for her to describe. Nice work if you can get it.
Yesterday, radio and TV studios hosted a procession of squirming Lib Dem spokesmen miserably trying to explain to incredulous interviewers the progressive contortions of their proposals for tax increases in the Budget.
First, the Lib Dem election manifesto in 2010 proposed a ‘mansion tax’ on multi-million-pound properties.
When that was knocked back in coalition by the Tories, the Lib Dems proposed cutting tax relief on pensions for higher-rate taxpayers.
When that, too, was greeted with justifiable horror because it would punish the prudent for saving, Nick Clegg came up with yet another wheeze - a ‘tycoon tax’ to ensure that millionaires who legally avoid high tax rates are required by law to pay not less than 20 per cent in tax on their income.
Indeed, the Lib Dems appear to possess a bottomless bran-tub of proposals to ‘soak the rich’. However, the reason for the ‘mansion tax’ was that the realisation had dawned, somewhere in the dim recesses that pass for a Lib Dem brain, that taxing wealth-producers until the pips squeak means that - surprise - they become less inclined to produce more wealth.
Phew! Let's take a pause to consider.

"Taxing wealth-producers until the pips squeak." In Phillipsland all rich people are 'wealth producers', and any attempt to impose a slightly higher rate of tax on them will make their pips squeak. No matter that most truly wealthy people employ other people to do their work for them; no matter that most wealthy people (eg bankers, landowners, stockbrokers) often never have an original or a socially useful thought in their lives; no matter that most truly wealthy people inherit their wealth and live lives of considerable ease, thanks to their ability to NOT work and to employ other people who do the work. No matter that a slight increase in their tax contributions will have no effect whatsoever on their lifestyles and their wellbeing, let alone make their bleeding 'pips' squeak.

Shall we continue?
That was why Dr Vince Cable decided that taxation should be shifted from income to assets. The idea was that, instead of putting off those actually delivering prosperity for the nation, the state would pounce upon the fruits of their labours. Hence the ‘mansion tax’ on their houses.
There she goes again, insisting that the truly rich are "actually delivering prosperity for the nation", and suggesting that there's such a thing as "the fruits of their labours". As far as the rest of us can see, the City of London, spiritual home of those well-known labourers, "delivered" ruination to the nation, not prosperity. The fact that their mansions were frequently bought in the first place with huge 'bonuses' for crashing the economy doesn't seem to have occurred to Phillips.

Oh well.
The Lib Dem Chief Secretary to the Treasury, Danny Alexander, merely waffled about ‘asking the wealthiest to pay more’. Ah, the dreaded ‘w’-word.
In Lib Dem-speak, ‘wealthy’ seems to mean anyone who is not poor. So their proposals will clobber the many millions struggling along on middling incomes but who the Lib Dems think are the rich who must be soaked.
Here we see the real craziness, or possibly the deliberate evil, in Phillips - since she substitutes 'wealthy' for the word which the muppet Alexander actually used, which was 'wealthiest'. And where is her evidence that in 'Lib Dem-speak' the word 'wealthy' means 'not poor'?
They call this the ‘fairness’ agenda. Well, when a Lib Dem talks about fairness it’s time to take to the hills. For, of course, this is utterly unfair.
Yes, it is right and proper that the better-off should contribute in tax more than the poor. It is the mark of a civilised society for the ‘haves’ to offer a helping hand to those who genuinely have not.
But the fact the Lib Dems totally ignore is that the middle classes and the truly wealthy already do just that.
As we already know, this is complete nonsense. As we already know, the truly rich employ battalions of accountants to figure out how to avoid paying their fair share of tax, as laid down by the laws of the land. Some of them actually go so far as to deliberately evade taxes. Some of them do their banking offshore and use tax havens and anonymous bank accounts to keep their wealth well out of sight and out of reach. None of this is disputed by sane people.

And why is she still banging on here about the 'middle classes' - and trying to put the fear of God and of the taxman into them when she knows perfectly well that the creepy LibDems are merely suggesting that the wealthiest in our society should pay slightly more in taxes - certainly no more than they can easily afford? I think we know why.
This is not fairness. This is grossly unjust. It is also not merely an attack on the rich but a deeply oppressive bullying of the middle-class which, as the Treasury’s cash cow, is already targeted for financial punishment many times over.
"Deeply oppressive bullying"! "Grossly unjust"! "Attack on the rich"! "Financial punishment - many times over"! Either this woman is completely nuts or she's a vile propagandist of the first order. But not a very good one, since her gross exaggerations and distortions will only penetrate the brains of those who already hold such ludicrous opinions, Mail readers, obviously, and have no chance of converting anyone with any sense of reality or sense of social justice to go along with her bonkers way of thinking.
More than 3.5 million people now pay tax at 40 per cent on an annual income above £43,000. To call people earning such sums ‘wealthy’ is an offence against the English language.
So who's calling them wealthy? Not our chums the LibDems.
There may also be an overhaul of council tax, with new bands on properties worth more than £320,000 — again, hardly a ‘mansion’ in South-East England where that kind of money may buy only a modest semi.
True, Mel, but we all know that to have the highest band for council tax set at 320K always was and always has been grossly unfair. Why should someone wealthy enough to buy a million-pound property pay the same as those who can afford £320,000 or less? If we have several bands below 320K then why should the banding end abruptly at that level? There's no logic to it whatsoever. But then the Thatcherite architects of the Council Tax were never interested in fairness or social justice - they were only interested in substituting something - anything - for the hated poll tax.
And then there’s the proposed cut in child benefit for all those earning more than £42,745 — which would further penalise single-earner families while continuing to pay the benefit to dual-income families bringing in £80,000 a year.
This from someone who recently argued in the Mail for the abolition of all child benefit. Not happy about a staged abolition, Mel?
What’s more, those who cripple themselves by independent school fees or who pay for private health insurance are still subsidising everyone else through the taxes to which they contribute such a disproportionate share of their income.
Who says it's disproportionate? They pay proportionately less income tax now than their parents or grandparents ever paid, thanks to recent governments of the right and centre-right shifting the tax burden to VAT, which is the least proportionate and most unfair tax of all, since everyone has to pay 20% VAT on nearly all purchases, regardless of their ability to pay.

And who asked these people, these idiots, to "cripple" themselves anyway? Surely such "crippling" is self-inflicted by people who are wealthy enough to seek what they see as better quality health, education, etc. How come the rest of us can make do with the regular state provision? David and Sam Cameron for example, apparently. Are our hearts supposed to bleed for these poor "cripples"?
These middle-class and wealthy people are, in fact, contributing to the common weal many times over. Yet they are vilified by the Lib Dems and their ilk as social parasites.
Look, Mel. We all know that poor people who have jobs pay proportionately more tax than rich people who have an earned or unearned income. End of.

And when did LibDems EVER "vilify" the middle classes, OR vilify the wealthiest people among us for that matter, let alone call them social parasites? Many LibDems might be rather stupid people, but even they aren't THAT stupid. In fact I think it was the governor of the Bank of England, or possibly the head of the CBI, who said that many merchant bankers are social parasites. Which is quite true, as it happens.
[With] a ‘mansion tax’ the State, in effect, lies low so as not to frighten people away from helping the economy to grow; but when they have actually done so, it wallops them and snatches their money away.
"Wallops"? "Snatches"? Since when is passing legislation to require the wealthiest in society to pay a bit more in what's effectively a council tax "walloping" anyone? And who's going to do this walloping and snatching, anyway? Oh - I do believe it's us - we, the people - who are sick and tired of letting the richest 1% or whatever get away with paying proportionately less tax than the rest of us. For that matter, why should the richest, say, 10% get away with paying proportionately less council tax than people with properties worth £320,000 or less? That's what most of us would call disadvantaging the majority of the middle classes that Mel cares so passionately about, a la Mitt Romney.
So much for the Lib Dems and their politics of envy.
But are the Tories really any different?
Oh, Lord - she's dispatched the LibDems and their politics of "envy" already. Watch out you Tories!
As we all know, the Cameroons’ modernising strategy rests upon being seen to wear on their sleeve hearts that bleed for the poor. The way they have chosen to achieve this is by bashing the better-off. (!!!!!! Is 'bashing' a fit and proper word for such a lady?)
So they kept the top rate 50 per cent tax band for those earning upwards of £150,000 a year. This was purely a propaganda gimmick.
For it rapidly became obvious that in terms of raking in extra revenue it was utterly self-defeating, since the measures people were taking to avoid it actually reduced the amount coming into the Treasury.
This is the usual lie about higher tax rates producing less in taxes, which has been shown to be a lie again and again.
The Prime Minister and the Chancellor reportedly have come to understand that it is not the most brilliant idea to be dumping so cynically on the Tories’ supposed core constituency - the striving and aspirational classes. 
(I think she'll find this is the Tories' ONLY constituency at the present time. Striving is good? Greed is good?)
But they nevertheless still seem fixated on the need to hit the better-off - simply to fend off the accusation that they are ‘toffs’ who would happily see poor children starve in the gutter. Hence the ever-more frantic attempts to trade the 50 per cent tax rate for one of the Lib Dems’ war-on-the-wealthy schemes.
Accusation, eh? How ridiculous. How unfair. We all know that the Cameroons don't want to see poor children starving in the gutter. That's Mel's job already.
Still mesmerised by the false analysis that the Tories can win power only by appearing to be Left-wing, the Cameroons have unfortunately signed up to the manifest absence of fairness in the redistribution of wealth.
Oh sweet Jesus. Lord above. This is getting crazier by the sentence. I'm speechless.
Not only is this unjust; not only does it belittle the striving classes by assuming that all wealth is either unearned or somehow illegitimate; it also breaks off the nation’s middle-class nose in order to spite its own face.
Crazy. Bonkers. She's babbling. And foaming.
For the message the Coalition is delivering day after day is that the Government is anti-business and anti-wealth creation, and that any entrepreneur thinking of investing in the UK needs his head examined.
Speechless. This government has done nothing except pander to the City and the 'Markets'.
With the economy desperately struggling to pull itself out of recession, this takes political stupidity to an epic level.
Well the 'economy' had better pull itself out, since the government is so unwilling to help it, just as these Tories never did or said a thing to help it during a 30 year period when there was no such thing as industrial policy, unlike in Germany - only cheerleading for the City, privatisation, asset-stripping, the Big Bang, deregulation and the bonus culture.
The Lib Dems subscribe to this politics of envy and class spite because - heaven help us - they actually believe in it. The Cameroons subscribe because they think it will win them elections.
It’s a moot point which is worse - infantilism or cynicism. The pantomime horse that is the Coalition unfortunately has one at each end.
As I say, you have to be waaaaaaaaaaaaay over on the extreme political right wing in order to attack the Cameroons for their so-called left-wing policies. Surely cynicism is the stock in trade of politicians, anyway? Obviously Mel would rather the Tories nail their (her) nasty policies to a highly visible mast in order to ensure future electoral success. Good one, Mel. Let's all simply tell the proles they can just fuck off and die, and be done with it.

Is it just me, or is this Phillips person getting crazier as she gets older? Or is she just showing clear signs of early onset something or other? Early onset frothing at the mouth, terminal rabid Mail-syndrome? Maybe it's just burn-out from a long (too long) career as a media rotweiler and arch propagandist. Give yourself a break, Mel. Retire now before it's too late to rediscover - or maybe discover for the first time - some semblance of reality, decency and sanity.

And by the way, dear Oxzen readers, don't forget to read the truly entertaining and hilarious comments of her readers which are on the website below Phillips' column. These are people who didn't just lose the plot - they never had any idea of it in the first place.


Thursday, February 16, 2012

Layer 521 . . . Greek Tragedies, The Gods of Speculation, and the Markets

Oxzen has written previously about the world being run by "the markets" (meaning run by the people who control the vast majority of the wealth) and the fact that individual governments seem unable, playing by the current rules of capitalism and globalisation, to do anything except bow down to the power of "the markets". This is true even for massive entities such as the governments of the USA and the EU, which are afraid, very afraid, of "the markets".


This week "the markets" are back in the news, along with their Provisional wing, the credit rating agencies.


Moody's blues: George Osborne's wooing of the rating agencies turns sour
Osborne has been lavishing expensive gifts on the credit rating agencies. But now they have shown their capricious side
by Larry Elliott
http://www.guardian.co.uk/commentisfree/2012/feb/14/moodys-george-osborne-rating-agencies
Credit downgrade alert leaves George Osborne in a political fix
Inflation may be falling but the chancellor has only few options open to him after Moody's credit warning
by Larry Elliott
http://www.guardian.co.uk/business/2012/feb/14/credit-downgrade-george-osborne-political-fix


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As Greece stares into the abyss, Europe must choose
The way out of the financial crisis faced by Greeks requires a choice about what kind of Europe we want
by Maria Margaronis
http://www.guardian.co.uk/commentisfree/2012/feb/12/euro-crisis-stake-greece-identity-europe
As I write, the Greek parliament is preparing to vote on the bond swap agreed with the country's private creditors and on the new deal with the EU and the IMF, which would lend the country €130bn in exchange for cuts that slice the last little bits of flesh from the economy – including a 22% reduction in the minimum wage and 150,000 public sector job losses by 2016. Without the deal, Greece will default by March; with it, the country will sink into a still deeper depression, with no end in sight. In a televised effort to rally the country behind yet more austerity, the finance minister, Evangelos Venizelos, laid out a blunt choice between sacrifices and worse sacrifices, humiliation and still deeper humiliation, if Greece should default and leave the eurozone.
It's not clear, though, how many people were listening. Exhausted by interminable cliffhangers and last chances, many Greeks have turned off the terrorist soap opera of the TV news and are trying as best they can to get on with their lives. The misery to which Athenians have been reduced – the soup kitchens, the homelessness, the depression and suicides, the rising tide of poverty that's swallowing the middle class – is now a staple of the features pages. It's harder to describe the sense of pervasive breakdown that gets under the skin; the feeling of disorientation and lost identity that comes with the collapse of the assumptions people lived by and the stories they told themselves about the future and the past.
When you ask people on the street if they would rather Greece went bankrupt than submit to further measures, many now point out that it is already bankrupt, that public sector workers have gone unpaid for months, that hospitals have no supplies, that the poor are being wrung dry in order to pay the banks.
Why, then, have large sections of the Greek elite clung so hard to the fantasy that a new loan deal can "save" the country? The obvious answer is that default is a black hole and an enormous risk. No one can predict what suffering a default might bring. Another is that the current crop of politicians built their careers in the system that is now unravelling, based on oligarchies, clientelism and corruption; they've proved unwilling to make the reforms that might, in a different global climate, have revived both Greece's economy and its democracy.
The deeper reasons, though, may be cultural and political. The crisis has intensified old splits in Greek society. You can see it in the polls, which show support ebbing from the centre to the edges of the political spectrum, and especially to the fragmented left. You can see it, too, in the historical parallels people reach for in a vain attempt to name this unprecedented nightmare. Protesters chant slogans from the dictatorship of 1967 to 1974, comparing the deal's Greek enforcers with the CIA-backed junta. Both left and right talk about a new German occupation – an understandable reference given that Germany is calling the shots and that Greeks last queued at soup kitchens in the 1940s, but one that can edge into racism or crude exaggeration, as in a recent headline that read simply "Dachau". Both those tropes call up the silent ghosts of the Greek civil war, which launched the cold war in Europe and outlawed the Greek left for the next 30 years. In this story, the west plays the part of the repressive imperial interloper.
For the liberal centre, this is populist anathema. To them Europe is still Greece's heartland and its hope, the only guarantor of liberal capitalism, human rights and democracy.
The trouble with historical metaphors is that they can obscure the present: what's really at stake here is not Greece's identity but Europe's. All eyes are fixed on Athens, but the way out of the crisis requires a choice about what kind of Europe we want. The one we have now, with its deep structural inequalities and its rigid adherence to a failed economic ideology, protects neither democracy nor human rights. Stiff-necked and punitive, it prefers to eat its children.
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Shame on Europe for betraying Greece
Capitalism is triumphant as EU states sacrifice the Greek people in a desperate attempt to appease the gods of speculation
http://www.guardian.co.uk/commentisfree/2012/feb/14/europe-betraying-greece
by William Wall
The behaviour of the EU states towards Greece is inexplicable in the terms in which the EU defines itself. It is, first and foremost, a failure of solidarity.
The "austerity package", as the newspapers like to call it, seeks to impose on Greece terms that no people can accept. Even now the schools are running out of books. There were 40% cuts in the public health budget in 2010 – I can't find the present figure. Greece's EU "partners" are demanding a 32% cut in the minimum wage for those under 25, a 22% cut for the over 25s. Already unemployment for 15-24-year-olds is 48% – it will have risen considerably since then. Overall unemployment has increased to over 20%. The sacking of public sector workers will add to it. The recession predicted to follow the imposition of the package will cause unbearable levels of unemployment at every level.
In addition the "package" demands cuts to pensions and public service pay, wholesale privatisation of state assets – a fire-sale, since the global market is close to rock bottom – and cuts to public services including health, social welfare and education. The whole to be supervised by people other than the Greeks. An entire disciplinary and punishment system.
When we casually use a term like "bailout", it is important to remember that it is not people who are being bailed out, or at least not the Greek people. The bailout will not save a single Greek life. The opposite is the case. What is being "bailed out" is the global financial system, including the banks, hedge funds and pension funds of the other EU member states, and it is the Greek people who are being ordered to pay – in money, time, physical pain, hopelessness and missed educational opportunities. The relatively neutral, even stoic, term "austerity", is a gross insult to the Greek people. This is not austerity; at best it is callousness.
On top of this callousness, we must remember that the strategy itself is nonsense. Every intelligent observer is agreed that cuts do not produce growth. The highest rate of growth in the EU at present is in Poland where massive public investment is driving the economy. GDP is declining or barely moving among the "austerity" nations, including the UK.
In essence, this crisis is a failure of the EU states to show solidarity in the face of an onslaught from the financial markets. At first glance this seems to be a very simple fight. In one corner you have nation states, which have the wellbeing of their citizens as their raison d'être; in the other you have global capitalism as represented by the financial markets, which has the wealth of a tiny few as its raison d'être. But the nation state has, for a considerable time, identified itself with those same markets. States have agreed to see themselves as economies rather than societies. More recently we have been led to believe that the market alone can provide everything the citizen needs and much more efficiently than the structures that the citizens normally rely on and which they have, over generations, erected as protections against the revenge of the market.
This is the triumph of capitalism, that it has persuaded the world that capitalism is the world.
It has led to the undoing of 200 years of struggle between ordinary people and the super-rich. Trade unions didn't appear overnight, they were a response to exploitation. Their defeat has led to the ubiquity of precarious, and now free, labour. Workers are not protected in their workplace by capitalists, they are protected by the laws won by struggle against the capitalist. A sweatshop in China is a direct assault not just on the rights of the Chinese worker but on those of workers in, for example, the UK. Socialist internationalism and solidarity were conceived as a way of defeating that ploy. Old people do not die in the streets not because charity has saved them but because 200 years of struggle has brought us the old age pension and public health. The privatisation of those services is a return to the 19th century. None of this public good would have been won if people had identified with the super-rich of 1812. Now that we have been brought to such an identification, we stand to lose them all over again.
Now we see capitalism at its most triumphant. Greek police beat Greek people in order to impose the will of the banks and hedge funds. The EU member states, including Ireland, are the middleman, the quislings of capital. Rather than reach out a hand of solidarity, we say, "better them than us". As if the global markets will choose to pass on Ireland once Greece has been destroyed. Solidarity is not just compassion for one's fellow man; it is also materialist self-interest. One for all and all for one. We stand or fall together. There is strength in unity.
Instead we have decided to sacrifice the Greek people to the market in the hope that our sacrifice will appease the gods of speculation. We condemn them to misery and poverty to keep Standard & Poor's off our backs. But we have miscalculated. Firstly, the communist left currently stands at 42% in the polls, Pasok at 8%. Pasok (the leading party in government) will vanish and a combination of real leftwing parties will win the next election. They will not bend the knee and put their necks on our block.
It seems to me now that Greece will withdraw from the euro and default on its debt. Who knows what will happen to it then, but it can hardly be much worse than what we want from them, and at least it will be something of their own choosing. The speculators will then take a little time to consider which of the other economies to bet on. Perhaps then the Irish government will regret its lack of solidarity. Whatever happens, our behaviour and that of our EU compatriots has been shameful.
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Greece and the return of the economic 'death spiral'
The lesson of 2008 was that stimulus prevented a new Great Depression. Without similar drastic help, Greece will now default
by David Blanchflower
http://www.guardian.co.uk/commentisfree/cifamerica/2012/feb/13/greece-return-economic-death-spiral
During the latter part of 2008, central bankers around the world worried secretly that the death spiral was approaching. The concern was that it was too late to stop economies crashing. In the event, concerted international action on both monetary and fiscal policy prevented collapse – although they did get pretty darn close to the precipice.
In the UK, then Chancellor Alistair Darling had only a few hours notice that the Royal Bank of Scotland was about to fail. The fear was that cash machines around the world would close, banks would fold and stock markets would tank within hours. This was a once-in-100-year shock: in my view, without such unprecedented intervention, unemployment rates in the US and Europe could well have risen to over 24% – which is where they are already in Greece and Spain.
Stimulus worked, simple as that.
On 9 February, the Hellenic statistical authority, which is Greece's central statistical office, published data on the labor market and industrial production (pdf), which suggests the Greek economy is headed over the cliff. This is a Great Depression for Greece and its 11 million inhabitants.
Without reforms to its product and labor markets, alongside the introduction of a fully-functioning tax system with enforced compliance, Greece has no future and is headed to inevitable default.
The only issue is, how disorderly will it be? It's not so much that the Greeks won't pay, it's that they can't. Greece remains uncompetitive.
For all the deals being signed in Athens and Brussels, the Greek people have worked out that they have no hope; protest and social unrest now looks a rational option to the ordinary people who are bearing the cost to bail out European banks. Cuts in the minimum wage right now are probably not very smart politics.
Greece does still have a card to play – which is "one down, all down". An exit from the euro would result in a depreciated drachma, which would potentially give a much needed boost to tourism. And that sounds better than all other alternatives currently on offer. There is still time for Germany's Angela Merkel to get out her cheque book; but otherwise, it's all over – and quite possibly very quickly.
This really is what a death spiral looks like.
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And talking of tragedies - I give you the Sun newspaper/rag.

The front page yesterday had to be seen to be believed:

http://www.thesun.co.uk/sol/homepage/news/4127833/Whitney-Houston-death-Bath-tub-where-star-died.html

It's worse than on the website.

"Whitney's Death Bath - the First Images."

The bath in the photograph is still filled with the actual water in which tragic Whitney died. The bath photo shares the page with a photo of Whitney looking . . . somewhat . . . drowned.

Just when you think the bottom of the barrel has been well and truly scraped already . . .


But wait!

Also on the website -

40-stone Brenda is Britain’s fattest woman

http://www.thesun.co.uk/sol/homepage/news/4130131/40-stone-Brenda-is-Britains-fattest-woman.html

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I have to end this blog with something good and decent and inspiring.

Robby Krieger: soundtrack of my life
The former Doors guitarist talks about discovering rock'n'roll, blues and jazz and his memories of recording with Jim Morrison
Interview by Hermione Hoby
http://www.guardian.co.uk/music/2012/jan/29/robbie-krieger-soundtrack-my-life

Still love that Crawlin' King Snake by the wonderful John Lee Hooker.

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Wednesday, February 15, 2012

Layer 518 . . . Feminism, Burchill, Friendship, Pampering, Whining, and Masters of the Media Universe

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Julie Burchill has always been a loose cannon - a kind of anarcho-feminist. Recently she popped up (again) in the Observer with this interesting column on women, men and friendship:
Spare me from the whining women who are giving feminism a bad name
The 'girls' night in' antics on Celebrity Big Brother highlighted all that is wrong with female friendship
http://www.guardian.co.uk/commentisfree/2012/jan/29/julie-burchill-female-friendship-feminism


I have experienced jealousy, possessiveness, verbal abuse and violence from men, but I have also experienced jealousy, possessiveness, verbal abuse and violence from women, usually when I failed to respond to their advances. 
There are aspects to broad-bonding that make me feel I'd rather be a surrendered wife for an evening than have a girls' night in. At least you'd get some proper sex out of it.
"Pampering", for a start. When did women whose looks are not their living start conducting themselves like the simpering inmates of an Ottoman empire seraglio? Tellingly, spending a huge proportion of one's income on preening oneself for men's approval ("I'm doing it for me, not for men" – oh, give it a rest, you lying cow!) as a leisure option has gone hand in hand with the rise of ceaseless recreational moaning about men, and if I thought that I had to spend three-quarters of my time and money turning myself into a hairless, poreless living doll in order to get someone's affection, I'd probably resent them too. 
But the cult of pampering – like fashion – is not a thing that straight men make women do. Straight men couldn't care less – they generally just want women to have a wash, bring beer, show up and strip off. Women do it to themselves.
Sadly, a lot of what passes for feminism these days is just moaning about men, congratulating ourselves on nothing in particular, and mocking them for being big kids while doing everything we can to keep them that way.
But moaning about men doesn't make you a feminist – it just makes you a moaner who can't get along with men for reasons that are probably at least as much to do with your failings, flaws and foibles as they are with some imagined horridness on the part of men. 
Lots of women love to accuse men of being immature when the fellow in question displays a reluctance to "commit" – though what is childish about being self-sufficient and showing understandable reluctance to throw oneself into a smothery relationship with an obviously unhappy fellow human being (because surely only extremely unhappy people look to others for salvation) escapes me somewhat.
As a kid, I grew to define what I didn't want my life to be like by sitting behind moaning women on the bus, hearing them bang on about their aches and pains, both real and imagined. Too many allegedly smart women these days have merely substituted males for maladies and seem hellbent on moaning their lives away rather than changing them.
Einstein said that a definition of insanity was doing the same thing over and over again and expecting different results, and I think of this when I hear a friend describing men – yet again – as fuckwits. Look, hon, I want to say, if men don't suit you, go celibate. Go lesbo (but not with me, thanks) but stop moaning!
The older I get, the more I find that the friendships I treasure, which leave me wanting more, are those based around doing specific things – from the living hell of kettlebell classes to the transcendent bliss of learning Hebrew – rather than just sitting around shooting the breeze in a gender-specific environment. Because even the most well-moisturised girls' night in tends to trickle down to a pity party as the years take their toll.
Still, it's just a bit of fun, right? All girls together! Put on the Adele records, break out the cava and let's pamper ourselves stupid. But there will be tears before bedtime, more likely than not, and men for once won't be to blame. The party's over and we did it to ourselves.
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Over the past few years Oxzen has banged on somewhat about economics, finance and banking - subjects not exactly guaranteed to thrill or even interest the average blog reader. Paul Mason, Newsnight's economics editor, has become a particular favourite of this blog for his work on BBC2 and for his articles in the Guardian. How interesting, therefore, to come across this excellent 3-page spread in the Observer Review:
New masters of the media universe
Before the global meltdown, financial news was strictly for geeks and struggled to get on the news. Now, financial correspondents have become celebrities
http://www.guardian.co.uk/business/2012/jan/29/business-economics-journalists-reporting-celebrities
by Elizabeth Day

Over the last four years, since the global financial crisis was triggered by the bursting of the US housing bubble and the domino-like fall of a series of over-leveraged, under-regulated banks, something curious has happened to business coverage. Where once it was the preserve of financial policy wonks and secretive, high-powered bankers who liked to discuss credit default swaps over breakfast, now it has emerged, blinking, into the mainstream.
We are, it seems, a nation now obsessed by business and economics. In March, the writer John Lanchester publishes Capital, an epic novel examining the fall-out from the economic crash. A six-part docudrama about the city, produced by the team behind the psychological crime drama Luther, is being developed by the BBC.
Paul Mason, Newsnight's economics editor, says: "Our audience research has shown that despite the fact that we've massively upped our coverage of the economy, the audience wants even more. For our audience, who are very professional, Volvo-driving types, they want to see the big business people grilled."
Stories about the economy – the bailouts, the losses, the bankers' bonuses – have jumped to the top of the news agenda, replacing the slots previously occupied by political, sport or showbiz scoops.
For the first time in living memory, business correspondents are basking in the warm glow of the limelight. Every one of them I speak to recounts their own anecdote about the moment they realised their specialism had suddenly become cool.
What has driven this upsurge in interest? There have, after all, been recessions and bank collapses before (albeit not on the same scale). But the current financial crisis seems to have captured the public imagination in a particularly potent fashion.
According to Peston, the answer lies in the fact that we are now faced with an economic implosion . . .
"Suddenly it became clear in 2007, when the markets were closing down and then Northern Rock collapsed, that what was happening in these funny organisations called 'banks' mattered to all of us because, as taxpayers, we're bailing them out," he says. "We're getting poorer as a result of their actions. People just got it overnight, about how important understanding business is."
People have realised that the way money goes round the world really matters.
"As journalists, we had the immediate short-term issue, which was that people needed to understand the recession. But I like to think there is a wider civic issue too, because it's outrageous how long the public at large have been so laidback about understanding what goes on."
"It's like food: we used not to care so much about how it was produced but now we want to know what goes in it. In the same way, people need to understand that finance is about understanding how the world operates."
The desire of vast swathes of the television audience to get a grip on what is happening means there is an ever-more pressing need for a communicator to act as go-between. In the conjoined spheres of business and economics, the role of the correspondent is paramount.
Faisal Islam agrees: "At the heart of the financial crisis is complexity and people are looking for ways in which that complexity can be decoded. It poses a challenge for journalists because, essentially, complexity has been used and abused by financiers and politicians to mask what they didn't know and we, as journalists, have to explain that.
"We have to get to the bottom of what really happened at RBS or HBOS because the people who caused it really haven't been held to account."
It helps, of course, that many of the disgraced financiers are such extraordinary characters – there is nothing better designed to leaven a dry discussion of off-balance sheet securitisation than a Bonfire of the Vanities-style tale of excess, ego and self-destruction. In the UK, there is Sir Fred Goodwin, the disgraced Royal Bank of Scotland chief executive, who lavished £350m on new office headquarters, enjoyed the use of a private jet and admitted having an affair with a senior colleague in the run-up to the bank's collapse. After RBS's £45bn taxpayer-funded rescue, Goodwin left with a £342,500 annual pension.
In America, there is Dick Fuld, the former CEO of Lehman Brothers, modern art enthusiast, real-estate millionaire and a man with a manner so gruff and brutal, he was nicknamed "the Gorilla" on Wall Street.
"It's almost like a soap opera you get locked into," says Jeff Randall. "If I tell the story with dividends and yields, I've lost you, but if I tell the story of Fred Goodwin, it becomes more engaging… There are all these characters who can be power-mad, slightly crazy, venal, weak – all the human foibles – and that would make a good drama, except these people were playing for real and for higher stakes."
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With friends like Facebook…
Facebook's reaction to proposals to tighten up on privacy rights shows its lack of respect for others
by John Naughton
http://www.guardian.co.uk/technology/2012/jan/29/facebook-data-privacy-rights-regulation
Facebook made this announcement on its official blog: "Last year we introduced timeline, a new kind of profile that lets you highlight the photos, posts and life events that help you tell your story. Over the next few weeks, everyone will get timeline. When you get timeline, you'll have seven days to preview what's there now. This gives you a chance to add or hide whatever you want before anyone else sees it." Note the authoritarian tone: "Everyone will get timeline." Translation: you'll get it whether you like it or not. We will return to this later.
The truth is that companies such as Facebook are basically the corporate world's equivalent of sociopaths, that is to say individuals who are completely lacking in conscience and respect for others. In her book The Sociopath Next Door, Martha Stout of Harvard medical school tries to convey what goes on in the mind of such an individual. "Imagine," she writes, "not having a conscience, none at all, no feelings of guilt or remorse no matter what you do, no limiting sense of concern of the wellbeing of strangers, friends, or even family members. Imagine no struggles with shame, not a single one in your whole life, no matter what kind of selfish, lazy, harmful, or immoral action you had taken. And pretend that the concept of responsibility is unknown to you, except as a burden others seem to accept without question, like gullible fools."
Welcome to the Facebook mindset.
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Sunday, February 12, 2012

Layer 517 . . . LibDems, the NHS Bill, and Banker Bashing

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Yesterday Oxzen was out and about on the sunny streets of downtown Bermondsey when . . . what should he espy other than a flock of Liberal Democrats, gathered together on a pavement, looking as if they were about to go a-canvassing with their clipboards and leaflets.

Having walked past them it was tempting to go back and accost them with a few questions:

"What are you people doing about opposing the NHS bill?!"

"When are you going to demand the bill is abandoned?"

"Why is your party allowing Clegg and Cameron to go ahead with the bill?"

"Don't you realise that the likes of Tim Montgomerie and his conservativehome blog have called for the bill to be abandoned? Don't you people realise your party is now well to the right of the Tory heartland?"

"Do you really want to see NHS services farmed out to make profits for the private sector?"

But I didn't.

Sometimes, though, you have to admire Simon Hughes:
Lansley should be replaced after health bill becomes law, says Hughes
Lib Dem deputy leader says health secretary should 'move on' to enable government to put NHS controversy behind it
http://www.guardian.co.uk/politics/2012/feb/12/lansley-replaced-health-bill-hughes
A leading Liberal Democrat sparked renewed speculation about Andrew Lansley's future when he said David Cameron should find a new health secretary after the health bill becomes law.
The Lib Dem deputy leader, Simon Hughes, said he believed Lansley needed to "move on" in the second half of this parliament so the government could put the controversy over the NHS reforms behind it.
Hughes's comments will not be welcome in Downing Street, where Cameron has been defending Lansley in response to calls from the influential ConservativeHome website for him to be replaced and an anonymous briefing from a No 10 source saying the health secretary should be "taken out and shot".
Speaking on the BBC's Andrew Marr Show, he said: "I'm clear we need to move on from this bill. My political judgment is that in the second half of parliament it would be better [for Lansley] to move on."
When asked whether he was saying Lansley should be replaced, he confirmed that he was, but also accepted that he needed to be "careful about the political sensitivities of this coalition".
Although Hughes is not a minister, he is the most senior figure in the party to call for Lansley to be replaced.
He spoke out as Labour stepped up its attack on the health reforms, releasing an internal Department of Health letter saying too many patients were facing delays because trusts were failing to meet waiting time targets.
The coalition finds itself under fire on many fronts. The Mail on Sunday reported that McKinsey, which has received almost £14m from the government for work on the NHS, paid for health regulator staff from Monitor – including the chairman, chief operating officer and director of strategy – to attend lavish events.
A YouGov poll for the Sunday Times showed only 18% of people said they supported the NHS reforms. It revealed that 48% opposed them, with 34% saying they were not sure.
http://conservativehome.blogs.com/

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Why we need more banker bashing
Banks are the biggest scroungers of public money – solutions will not simply materialise if we don't keep up the pressure
http://www.guardian.co.uk/commentisfree/2012/feb/07/why-we-need-more-banker-bashing
by Sunny Hundal
Banking reform has been pitifully weak. If the crash were to happen again tomorrow, the government would have to bail them out again. They remain leveraged up to their eyeballs; remain "too big to fail" and too inter-connected to each other so most can't be allowed to go bust. Without public anger there is no impetus to push banking reforms further, which the Conservatives are stridently resisting and Labour is still reluctant to push too far.
Banker bashing begs a wider question – if finance has become the life-blood of modern economies, why can't we exercise more control over such a vital industry? Consider this: we pretend that banks are private businesses that should be allowed to run their own affairs. But they are the biggest scroungers of public money of our time. Banks are lent vast sums of money by central banks at near-zero interest. They lend that money to us or back to the government at higher rates and rake in the difference by the billion. They don't even have to make clever investments to make huge profits.
Far from being the pinnacle of free market capitalism, banking is full of sorry executives who keep asking for more handouts to protect their deliberately bloated businesses. The solutions won't materialise if we go back to how things were. Public anger has grown because it is starting to dawn on middle England that while the rest of us are paying for the crisis, the people who caused the crash want to go back to 2007. Even the Daily Mail is starting to reflect this impatience. This recession is already longer than the 1930s and the stagnation will continue for maybe a decade. For from being over, the nightmare for the Goodwins and Hesters is just getting started. And quite rightly too.

Good comments by moretorybullshit and others beneath this article.
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Tuesday, January 24, 2012

Layer 507 . . . Scotland, Capitalist Realism, Maximum Wages, Welfare Cuts, Cannabis Taxation, The Age of Austerity and Morality

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There are several good articles in the Guardian today, all of which deserve to be read by progressives and others who care about political literacy.

Alex Salmond's column is a brilliant exposition on why Scotland needs either full devolution or independence:

An independent Scotland will be a beacon of fairness


As an independent nation Scotland can make a far greater contribution to progressive politics, while reinvogorating our social union with England

http://www.guardian.co.uk/commentisfree/2012/jan/23/scottish-independence-social-union

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Paul Mason: 'These revolts have ended the period of capitalist realism' - video

http://www.guardian.co.uk/commentisfree/video/2012/jan/23/paul-mason-revolts-capitalist-realism-video

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Only a maximum wage can end the great pay robbery


Corporate wealth is being siphoned off by a kleptocratic class that has neither earned nor generated it

by George Monbiot

http://www.guardian.co.uk/commentisfree/2012/jan/23/george-monbiot-executive-pay-robbery

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For Greece default is the only option


The dreadful debt saga will only come to a close when Greece takes charge of its predicament

by Costas Lapavitsas

http://www.guardian.co.uk/commentisfree/2012/jan/23/greece-default-only-option-debt

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Welfare cuts: now they're slamming the door on the truly desperate


After a dismal day in the Lords comes the cruellest cut to the welfare state, in which emergency loans go over to 'local' control

by Polly Toynbee

http://www.guardian.co.uk/commentisfree/2012/jan/23/welfare-cuts-emergency-loans

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The payout to the boss of RBS is a disastrous deal for the taxpayer


Ministers could act over Stephen Hester, the most lavishly rewarded public servant of all – but will they?


by Aditya Chakrabortty

http://www.guardian.co.uk/commentisfree/2012/jan/23/stephen-hester-payout-bad-for-taxpayer


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Cannabis taxation: a win-win all round, Richard Branson tells MPs


Virgin boss appears before Commons committee to argue for regulation of drug and diversion of resources to crime-fighting

http://www.guardian.co.uk/politics/2012/jan/24/cannabis-tax-branson-mps-virgin

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These letters certainly deserve to be noted, especially the one by Michael Meacher -


Alternatives to the age of austerity

http://www.guardian.co.uk/society/2012/jan/23/alternatives-to-age-of-austerity

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Last week Polly Toynbee wrote this column -

On morality Ed Miliband is way ahead of Cameron. Now for the economy


Miliband has done well to force Cameron to fight on Labour territory. But he needs to change the economic conversation


http://www.guardian.co.uk/commentisfree/2012/jan/19/ed-miliband-cameron-economy


Before the election Cameron made one speech on "markets without morality", one of his butterfly touch-downs, but has done nothing since – until Ed Miliband got "predatory capitalism" up and running. Focus groups tell Cameron he has to run to catch up: voters are angry at runaway excess in hard times. But where's the beef? Praise for free markets and blame for regulation left no plan for correcting corrupted capitalism. Bank regulation has been kicked into 2019 – political neverland: in a trice the entire NHS is put up for tender to "any qualified provider", but banks get seven years to "prepare" while they lobby against already weak reforms.


Labour's adoption of all the High Pay Commission recommendations is more radical than the party's been given credit for. Listen how loudly business protests at putting employees on remuneration committees. Why? Because that requires works councils to elect representatives, opening a new world of German-style collaboration, more productive and leading to fairer pay. Labour would oblige all companies to publish a pay ratio, showing pay scales. All fund managers would have to reveal how they voted on boardroom pay, shaming pension funds that rubber-stamp greed at shareholders' expense. This week Miliband challenged predatory takeovers, such as Kraft eating up Cadbury.


So far not bad, and the Tories are trailing. Now Labour needs to jump ahead again with bolder plans. Take this week's Fair Pay Network report on supermarkets' poverty pay. To cut the benefit bill steeply, Labour should demand rich companies don't leave taxpayers to subsidise starvation wages with tax credits. If the TaxPayers' Alliance were not a Conservative party front, it would support a living wage.


The Eds are right to make 2015 year zero. Only when seeing how bad the economy is, and which cuts have done most damage, can they choose priorities. Even within George Osborne's iron envelope, opposite choices can be made. With 3 million out of work, would raising public-sector pay come first? No: jobs and growth, an investment bank, work for the young, restoring worst cuts and building homes come first. Money washes around, from the Concorde-style HS2 to Boris's airport, bibles in schools, a yacht for the Queen, bank bonuses, a free schools bonanza and £3bn on NHS turmoil. From Trident, wars and whims, there is money. While Goldman Sachs pays bonuses the size of Albania's GDP, this rich country has phenomenal untaxed wealth in property accumulated by the top 5%: shedloads more is sequestered abroad. Public appetite for fair tax collection and sharing of the burdens grows. Why else is Cameron frit?


A firm baseline for the economy need not stop Labour opposing cuts. Costed promises can be made: why not earmark aircraft carriers for universal childcare, make a mansion tax build new homes, and super-tax companies who overpay directors for small business investment? There need be no contradiction between an economic policy voters trust, and an imaginative radicalism they would support. Labour has done well to pull Cameron on to its own agenda. But winning the election matters most.

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Tuesday, December 20, 2011

Layer 500 . . . Education, Learning, Exams, Creativity, Money, Government, Civilisation, Protestors, Freedom and The Markets

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"I didn't feel Oxford was teaching me how to learn - it was just teaching me a bit of German."

So said Sir Peter Moores on One To One (Radio 4) this morning.

He gave up university. ("A pretty cool thing to do," said the presenter, Lucy Kellaway - who has been asking questions about what having a great deal of money does TO people, rather than FOR them.)

"Instead I enjoyed going round the continent in a little car for two or three years."

He also learned to speak German by hanging out in Vienna and Germany.

Through the Peter Moores Foundation he now gives away money in order "to get nice things to happen." "You put money where it's going to be useful."

He's a great supporter of the arts, artists, performers and creativity.

http://www.bbc.co.uk/programmes/b018cbnz

http://en.wikipedia.org/wiki/Compton_Verney_House

http://www.comptonverney.org.uk/

http://www.pmf.org.uk/

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Learning, Schools and Exams

Sometimes you come across a piece of writing that's so perfect you want to pass it on in its entirety. Mehdi Hasan is one of our most important progressive thinkers and writers, and in this one article he manages to sum up quite brilliantly everything Oxzen has been banging on about regarding education and learning throughout the course of the past 499 blogs. In this one piece he hits the nail right on the head as to why this country (ie England) should be ashamed of the changes that have taken place in education during the past three decades, whilst countries like Finland have been evolving educational philosophies and systems that are genuinely fit for purpose in the 21st century.
Our schools exam system is no longer fit for purpose
English pupils are the most tested in the industrialised world. The countries with the best education don't subject their kids to this misery
http://www.guardian.co.uk/commentisfree/2011/dec/16/schools-exam-system-not-fit

by Mehdi Hasan

It was a sorry sight. On Thursday, the heads of England's four exam boards, as well as three of their examiners, filed into the Thatcher Room of Portcullis House to be quizzed by MPs on the education select committee. The examiners had been secretly filmed by the Daily Telegraph offering teachers advice on how to boost their exam results – from telling them which topics their pupils could expect to be tested on, to advising them on how to "hammer exam technique" – and subsequently suspended by their boards.


However, in the midst of their litany of excuses ("We all make mistakes," whined one examiner; "It was a throwaway figure of speech," wailed another), some revealing remarks were made. Mark Dawe, chief executive of exam board OCR, told MPs there is "an enormous amount of pressure on the system". Suspended examiner Paul Barnes admitted there are "pressures to raise achievements", and that it is a "competitive world".


They have a point. The corruption of the testing regime is only a symptom. The disease is the tyranny of testing itself; a culture of relentless exams, spurious league tables and artificial competition between schools. Our exam system isn't fit for purpose.


English children are now the most tested children in the industrialised world (thanks to devolution, their Scottish and Welsh cousins do not suffer the same burden of examination); the average pupil will be subjected to at least 70 tests during his or her school career.


This preoccupation with testing is bad for schools, teachers and pupils. For schools, the costs have ballooned: spending on exam fees nearly doubled, to over £300m, between 2002 and 2010. Astonishingly, exams now account for the second biggest cost to schools after teachers' pay.


For teachers, it is deeply demoralising and demotivating to have to "teach to the test", as so many of them are forced to do. For many, teaching has become dull, narrow and uninspiring. There is no reward for creativity, only results, results, results.


For pupils, high-stakes tests are a well-documented source of stress and anxiety. According to children's charities, this can physically manifest itself as sleep-loss, bed-wetting or skin disorders.


Critics of the current system abound, and include the education select committee, the Children's Society, the Royal Society and various academics. In 2009, for example, a Cambridge University review of primary education described national testing as "the elephant in the curriculum" and noted that in the final year of primary school "breadth competes with the much narrower scope of what is to be tested".


In his book Education by Numbers: The Tyranny of Testing, Warwick Mansell explains how a strategy of "pursuing results almost as ends in themselves has been forced on schools, in their desperation to fulfil the requirements of hyper-accountability". But, he writes, "this grades race is ultimately self-defeating. It does not guarantee better educated pupils, just better statistics for schools and the government." He documents how primary school pupils spend an average of 150 hours purely in preparation for the Sats tests: "England's education system is now an exams system," he says.


Mansell's book should be required reading for the test-obsessed education secretary, Michael Gove, and his Labour shadow, Stephen Twigg. Politically motivated meddling in the examination system, by both Conservatives and Labour, has done little to boost school standards or pupil performance. Over the past decade, according to the OECD's Programme for International Student Assessment (Pisa) global survey of 15-year-olds, Britain has slipped from fourth to 16th in science, seventh to 25th in literacy, and eighth to 28th in maths.


The OECD's Economic Survey 2011 points out how, in spite of school spending per pupil rising sharply over the past decade, improvements in educational outcomes have been limited, bolstered only by grade inflation. The OECD notes that "high-stake tests" have proliferated in England, and yet these can often "produce perverse incentives" and "lead to negligence of non-cognitive skill formation".


So what if we took a radically different approach? What if we scrapped all the endless exams, abolished the headline-grabbing school league tables, and freed our teachers to teach kids how to think instead of how to take a test?


Would our schools get better or worse? Finland provides a clue. The country has topped the various Pisa rankings over the last 10 years. But Finland has no league tables, no school inspections, no pupil-by-pupil tests. In fact, the first national test a Finnish child sits is when he or she is about to leave school, at 18. The government does carry out regular assessments of school performance, by testing representative samples of students, but these are only for internal use and the results aren't published.


The Finns prefer to empower their teachers, who tend to be better-qualified and better-paid than our own. But it's not just sandal-wearing Scandinavians. Take Japan. A recent report for the Japanese ministry of education said the country should "avoid school ranking and unhealthy competition". And in Shanghai, China, as Mansell points out, school-by-school exam results tends not to be published – yet this didn't stop Shanghai from taking the top spot in last year's Pisa rankings.


Here in the UK, though, we have fetishised exams and deified league tables; we have prioritised test results – statistics, numbers, scores – over the hearts and, crucially, minds of our children.


And to what purpose? Exams are means, not ends; they do not, of themselves, raise standards or produce better-educated children. Nor do they truly measure the qualities necessary for a well-rounded education – from independent reasoning to creative thinking. Instead, in the words of the US educational psychologist Joseph Renzulli, we have created a new version of the Three Rs: "ram, remember, regurgitate".


For far too long, the debate over exams in this country has revolved around "dumbing down". The issue, however, is not whether exams are easier or harder than they once were but what role they serve. To conflate mere test results with a high-quality education is to do a disservice to our children. The truth is that education by exam isn't an education worthy of the name.

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It's also worth quoting extensively from this excellent piece by Jeffrey Sachs, the author of "The Price of Civilisation".
Western politicians are dire, but we mustn't despise government
Our leaderships, in thrall to big business, are failing in so many places all at the same time. But we can't give up on them
http://www.guardian.co.uk/commentisfree/2011/dec/16/western-politicians-government-leaderships-failing

The year 2011 will be remembered as the year of failed summits. Governments proved themselves time and again to be failures at addressing the growing crises engulfing the world, whether the eurozone debacle, climate change, or budget politics in the US and Europe.


Why should governance be so poor in so many places at the same time? There are several factors at play. 


In the face of high unemployment, growing inequality and looming budget deficits, most governments are paralysed, in thrall to powerful interests. Wall Street, the City of London, the Frankfurt banks and other corporate lobbies hold politics in their grip, and block effective change. Top income tax rates are kept low; banks remain undercapitalised and under-regulated; and urgently needed public investments for education, job skills and upgraded infrastructure are being slashed in response to budgetary pressures.


The politicians are also in way over their heads. They are typically negotiators and public relations specialists, not experts on the policies needed to resolve the world economy's crises. The special interest groups write the scripts, but these scripts prove impossible to stage. Every European summit in the past two years has not only failed politically, but also technically. The policy prescriptions put forward by Germany's Chancellor Merkel are poorly prepared and designed, and impossible to implement. The euro is being killed not only by politics but also by incompetence.


The actual process of governing has descended to soundbites. In the US the Obama administration has failed to produce a major policy document on any area of key policy concern: the budget, taxation, energy, climate, financial regulation, healthcare or poverty. Policies and legislation are decided in the backrooms dominated by lobbyists and negotiators. Politics is by horse-trading among interest groups – not by reason, expertise and democratic deliberation.


The European Union processes are now equally bizarre. The entire union of 27 countries awaits the word of one member, Germany, whose policy logic in turn reflects a mix of post-traumatic stress, coalition politics, powerful yet crippled banks, and amateur politicians. The European commission seems to play little or no role.


A few countries, notably the northern European social democracies, are keeping their heads above water, at least for now. They are stable because income inequality and poverty are kept low by active government policies. Transfer payments to the poor and the social safety net are robust. Tax collections are ample and budgets are in balance or surplus. Even these countries flirted with financial deregulation in the 1990s, paid a heavy price and then got their banking sectors back under control. Tough financial regulation has served them well during the past decade.


So what can we learn from the few success stories? First, societies function properly only when they are judged by their citizens to be reasonably fair. Northern Europe has built its policies on a framework of equality and inclusion. In the US, the idea of fairness has been almost absent from political vocabulary for three decades. The Occupy Wall Street movement, thankfully, has brought it back to life. Most of Europe is somewhere between the fairness of northern Europe's social democracies and the glaring inequities of the US. Yet in much of western Europe there has been a clear shift away from solidarity, towards harsher policies that shield the rich from their responsibilities to the rest of society.


Second, economic success requires increased public investments in education, infrastructure, energy, job skills and more. Simplistic budget cutting will destroy governments rather than fix them. Higher taxes on top incomes and wealth must be part of any sound fiscal strategy. Yet till today, Washington politicians of both parties have been recklessly and thoughtlessly squandering American prosperity by prioritising tax breaks for the rich.


Third, more expert policymaking is needed. The eurozone crisis, for example, requires urgent attention to Europe's decapitalised banks. Yet German politicians, driven by ideology and local politics, have been fixated on fiscal problems while allowing the banking crisis to fester and worsen. The US crisis is fundamentally about the under-taxation of the rich, yet the policy focus remains on budget cutting. In both Europe and the US, political debates consistently miss the mark by short-changing serious diagnostics and policy design.


Our temptation in the face of rampant government failures is to despise government, and even to cheer its demise. How can we avoid that feeling when we watch politicians preening on the TV screen? Yet we desperately need to make the US and European governments work again – not for the politicians' sake, but for ours. Unless we restore skill, fairness, and vibrancy to our democratic institutions, the unrest on the streets is bound to grow.

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Both of the above pieces appeared in last Saturday's Guardian, as did this one by Nina Power:

The meaning of Time magazine's celebration of The Protester
The praise is welcome, but behind Time's sanitised image of the protester lie real people beaten and killed by police and armies
http://www.guardian.co.uk/commentisfree/2011/dec/16/meaning-time-magazine-celebration-protester
Time magazine's person of the year 2011 isn't a celebrity, an artist, an entrepreneur or a politician. The "person" is the anonymous marker of a global movement: The Protester.
As Time's editor, Rick Stengel, argues, to celebrate the protester is to defend the idea "that individual action can bring collective, colossal change". This collectivity has spread like wildfire in the last year or so – each protest, revolution and occupation triggering new uprisings against state oppression, class inequality and police brutality. "From the Arab spring to Athens, from Occupy Wall Street to Moscow" declares the Time cover, with Stengel pointing out "the word protest has appeared in newspapers and online exponentially more this past year than at any other time in history".
But how to represent this collective subject, to give a face to this global anger?
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The other serious, radical, progressive thinker and writer I want to feature in this 500th blog is George Monbiot:
This bastardised libertarianism makes 'freedom' an instrument of oppression
It's the disguise used by those who wish to exploit without restraint, denying the need for the state to protect the 99%
http://www.guardian.co.uk/commentisfree/2011/dec/19/bastardised-libertarianism-makes-freedom-oppression

Freedom: who could object? Yet this word is now used to justify a thousand forms of exploitation. Throughout the rightwing press and blogosphere, among thinktanks and governments, the word excuses every assault on the lives of the poor, every form of inequality and intrusion to which the 1% subject us. How did libertarianism, once a noble impulse, become synonymous with injustice?


In the name of freedom – freedom from regulation – the banks were permitted to wreck the economy. In the name of freedom, taxes for the super-rich are cut. In the name of freedom, companies lobby to drop the minimum wage and raise working hours. In the same cause, US insurers lobby Congress to thwart effective public healthcare; the government rips up our planning laws; big business trashes the biosphere. This is the freedom of the powerful to exploit the weak, the rich to exploit the poor.


Rightwing libertarianism recognises few legitimate constraints on the power to act, regardless of the impact on the lives of others. In the UK it is forcefully promoted by groups like the TaxPayers' Alliance, the Adam Smith Institute, the Institute of Economic Affairs, and Policy Exchange. Their concept of freedom looks to me like nothing but a justification for greed.


So why have we been been so slow to challenge this concept of liberty? I believe that one of the reasons is as follows. The great political conflict of our age – between neocons and the millionaires and corporations they support on one side, and social justice campaigners and environmentalists on the other – has been mischaracterised as a clash between negative and positive freedoms. These freedoms were most clearly defined by Isaiah Berlin in his essay of 1958, Two Concepts of Liberty. It is a work of beauty: reading it is like listening to a gloriously crafted piece of music. I will try not to mangle it too badly.


Put briefly and crudely, negative freedom is the freedom to be or to act without interference from other people. Positive freedom is freedom from inhibition: it's the power gained by transcending social or psychological constraints. Berlin explained how positive freedom had been abused by tyrannies, particularly by the Soviet Union. It portrayed its brutal governance as the empowerment of the people, who could achieve a higher freedom by subordinating themselves to a collective single will.


Rightwing libertarians claim that greens and social justice campaigners are closet communists trying to resurrect Soviet conceptions of positive freedom. In reality, the battle mostly consists of a clash between negative freedoms.


As Berlin noted: "No man's activity is so completely private as never to obstruct the lives of others in any way. 'Freedom for the pike is death for the minnows'." So, he argued, some people's freedom must sometimes be curtailed "to secure the freedom of others". In other words, your freedom to swing your fist ends where my nose begins. The negative freedom not to have our noses punched is the freedom that green and social justice campaigns, exemplified by the Occupy movement, exist to defend.


Berlin also shows that freedom can intrude on other values, such as justice, equality or human happiness. "If the liberty of myself or my class or nation depends on the misery of a number of other human beings, the system which promotes this is unjust and immoral." It follows that the state should impose legal restraints on freedoms that interfere with other people's freedoms – or on freedoms which conflict with justice and humanity.


But rightwing libertarians do not recognise this conflict. They speak as if the same freedom affects everybody in the same way. They assert their freedom to pollute, exploit, even – among the gun nuts – to kill, as if these were fundamental human rights. They characterise any attempt to restrain them as tyranny. They refuse to see that there is a clash between the freedom of the pike and the freedom of the minnow.


Modern libertarianism is the disguise adopted by those who wish to exploit without restraint. It pretends that only the state intrudes on our liberties. It ignores the role of banks, corporations and the rich in making us less free. It denies the need for the state to curb them in order to protect the freedoms of weaker people. This bastardised, one-eyed philosophy is a con trick, whose promoters attempt to wrongfoot justice by pitching it against liberty. By this means they have turned "freedom" into an instrument of oppression.

http://www.guardian.co.uk/commentisfree/2011/dec/19/bastardised-libertarianism-makes-freedom-oppression

http://www.monbiot.com/

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The Masters of the Universe

One final serious thought for now. Thanks to the financial crisis, we now fully understand who really decides what goes on on this planet. Or what. "The Markets". Not the United Nations. Not the USA. Not the EU. They all operate in fear of "the markets", and in terror of the markets' Provisional wing - the credit rating agencies. The 1% who control the vast majority of the wealth on this planet also control what individual governments believe they can do in terms of aims and policies. Sensible governments in places like Scandinavia and China make damned sure they protect themselves (and their people) from being too beholden to "the markets". The rest do not. This is the end result of "globalisation", which is just what the Chicago Boys, the Friedmanites and the designers of the Washington Concensus intended it to be. Money rules.

Extreme capitalism/neo-conservatism lies one end of a continuum which should possibly be called the axis of evil, which runs from Washington through Wall Street and the City of London all the way to places like Pyongyang.

Give someone you know and like a copy of Naomi Klein's "The Shock Doctrine" for Christmas.
Have a Happy New Year.

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Kim Jong-Dead

The Kim is dead. Long live The Kim.

I'm just saying.
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