Wednesday, July 01, 2015 

Oh for an incompetent government.

Government, we tend to think, is at its worst when it's either incompetent, or obtuse.  Well, excepting those who really do believe, as the Gipper put it, the nine most terrifying words in the English language are "I'm from the government and I'm here to help".  Philip Hammond wringing his hands about how the Tunisian gunman Seifeddine Rezgui was likely trained in the "ungoverned spaces" of Libya and then in his next breath defending the intervention that led to that very space being ungoverned is pretty much par for the course.  We expect government to defend itself despite knowing full well it had more than a hand in how the current situation came about.  It's just how it works.

The same goes for the foisting of the legal requirement on schools, hospitals and prisons to prevent extremism, and the ridiculous official definition of what constitutes "extremism" ("the vocal or active opposition to fundamental British values, including democracy, the rule of law, individual liberty and the mutual respect and tolerance of different faiths and beliefs").  The path to radicalisation is different in almost every case, and the idea that a teacher reporting up the chain that one child has an exceptionally negative view of homosexuality could ever prevent something further down the line is completely absurd; the government knows this.  Nonetheless, Nicky Morgan, forever looking as though she's just put a hot chip in her mouth seconds before being dazzled by studio lights, must go on television to insist that black is in fact white, as government has to be seen to be doing something.  It isn't simple coincidence this has the effect of putting more responsibility on the shoulders of teachers, transforming them yet further into social workers, as it couldn't be clearer the Tories hate the entire profession with a passion, but it's a happy side effect.  The government approach to radicalisation seems to be that so much as discussing what might lead to it in schools is tantamount to a betrayal of British values, and if you don't talk about it, clearly it doesn't exist.  Job sorted, now we can get back to putting the blame wholly on Muslims as though they're a homogeneous entity?

No, government is most definitely at its worst when completely and utterly open about what it's doing, and yet still lies about it.  George Osborne's second budget of the year, now only a week away, should finally start to set out precisely where the £12bn in welfare cuts are going to be found.  As has been apparent for quite some time, if you're going to protect pensioners, the disabled and not cut child benefit, the only possible way to get close to that figure is to do something very drastic indeed to both tax credits and housing benefit, both of which are mainly claimed by those in-work.  David Cameron started the softening up process last week with his deeply disingenuous speech about putting an end to the "merry-go-round" of those on low incomes being taxed only to then be handed the money straight back.  It didn't seem to matter that's how the tax system in general works: you are taxed, and services are there as and when you need them.

The obvious problem with cutting child tax credits back to the level they were introduced at back in 2003, one of the most efficient ways of clawing back £5bn, as identified by the IFS, is that you're not hitting the nasty undeserving poor, the scummy mummies and the perpetually drunk, but the strivers at the heart of the "one nation" the Tories have suddenly discovered they stand for.  Even worse, there is or rather was the small problem of the 2020 child poverty target that Gordon Brown managed to get enshrined in law in the dying days of the last Labour government.  One of the targets, long criticised by Iain Duncan Smith, was the aim to reduce relative child poverty, defined as family income 60% below the median, to less than 10%.

What to do?  Even at this point rethink the cuts?  Perhaps not sell off RBS until the share price means the taxpayer won't lose the equivalent of £13bn, as Osborne wants to?  Don't be silly.  No, you just scrap the target entirely, as IDS has today done.  You see, the aim of reducing relative child poverty has led to "unintended consequences for good reasons", namely the increase in tax credits.  And this hasn't really had the effect of dealing with poverty; after all, if you're only £1 better off than the 60% below benchmark, you're still damn poor, aren't you?  Besides, there are the perverse side effects of the target, such as how when everyone is worse off, such as after a recession, it means there are supposedly fewer paupers than there were before.  Or if the government puts pensions up, the opposite becomes true.

Instead the government will focus entirely on getting social mobility going.  Measured will be worklessness and family breakdown, as well as debt and drug dependency.  IDS has long been obsessed with worklessness, and for good reason: as Rick pointed out, and recent studies by the Resolution Foundation have found, worklessness, let alone the long-term worklessness the Tories have so often identified as being the root of all evil in the benefits system, barely exists any more.  There are more people in work in poverty than not, for the reason that work has become that much more insecure and low paid.  Tax credits have duly gone up to compensate.  As commentators pointed out after David Cameron's speech last week, it was Ed Miliband who tried to flesh out an alternative with his clumsy predistribution.  Now the Tories have their majority they don't need to bother to find that alternative: they can just cut tax credits as a whole, say you voted for this, and argue their great economic plan will see everyone's wages go up.  Eventually.  IDS getting rid of the child poverty target was simply the final hurdle.  He's been completely open about why he's done it, while still putting in place a diversion.

Next week the government will announce that the poorest are about to get poorer.  It won't of course be presented like that, and no doubt another rise in the income tax threshold will come alongside it, which will mainly benefit those on middle incomes but will look as though it's helping those on low wages.  The blame will be put not on those who caused the crash, who might in fact be rewarded with another cut in the top rate of income tax, but the Labour party.  Labour in turn might find the remaining fire in its belly, but the leadership contest so far has revolved around accepting the narrative set by the Tories and the right-wing press, so it's unlikely to last long.  Besides, summer's here, parliament's about to go into recess, and by the time it returns it's practically time for the conferences.  Osborne and Cameron some say aren't ideological, that the cock-up version of history is always more convincing the conspiratorial one.  Even if true, it doesn't alter the fact the Tories are doing this because they want to, not because it's the best, let alone fairest way to reduce the deficit.  Give me incompetent government over this any day.

Labels: , , , , , , , ,

Share |

Friday, May 08, 2009 

More unequal than ever.

It's been completely overshadowed by other events, but what really should be the final nail in Labour's coffin was quietly slipped out yesterday: the income gap is now the widest it has been since records began. This should be the very knife in the heart of New Labour: the entire political deal which shaped the party was that even if the rich would be allowed to become filthily so, through subtle and stealthy redistribution the poorest would be lifted out of poverty, with child poverty to be abolished altogether.

Arguably, for a while it worked: the poor were not getting poorer, it was just the rich getting richer more quickly which prevented Labour's record from being noteworthy and successful. The latest figures however show that even before the banking meltdown, the poorest were having to make do on less, while the richest continued to benefit. As alluded to above, this should be the final straw: the whole reason that Labour supporters were meant to put up with the triangulation, the constant appeasing of the tabloids, the wars, the constant reactionary rhetoric on everything that the Home Office deals with and dealt with was because that below the surface, things were slowly but surely getting better for the most vulnerable in society. Now even Polly Toynbee at her most desperate cannot pretend that her nosepegs can keep out the smell that emanates from New Labour's corpse.

Labels: , , , ,

Share |

Tuesday, November 04, 2008 

Labour isn't working.

When your default world-view is cynicism, not much tends to shock you. Even by the modern standards of the Labour party, this is little short of astonishing:

Ed Balls, the children's secretary, and Yvette Cooper, the chief secretary to the Treasury, have launched an attack on the so-called London living wage – the £7.45 an hour recommended minimum for all workers in the capital. They claim it would be "artificial, inflationary" and not "necessary or appropriate."

...

But the children's ministry, which is a signatory to the Child Poverty Pledge, said: "An artificial 'living wage for London' could distort labour markets and prove poor value for money. Moreover, in seeking to reflect perceptions of the cost of living, this proposal could also raise inflation expectations at a time when increased vigilance is needed on inflationary risks. We do not believe it is necessary or appropriate."

This is, not to put too fine a point on it, utter crap. The real danger at the moment as has been argued by David Blancheflower and others is not inflationary pressures but unemployment and if anything, deflation (not stagflation, obviously. durrr).

Who on earth is New Labour attempting to appease with this in effect two fingers to the working poor? Why, that would be the CBI, the same organisation which opposed the minimum wage from the very beginning and complains every time the government dares to raise it.

To try and get your head around just how foolish this is, even the Tories support the living wage, or at the moment at least pay lip service towards it, as do the Liberal Democrats. Why then would any person in London or other major city on the minimum wage vote Labour when they don't even pretend to be on their side, and make such utterly dismal arguments to defend the indefensible?

The irony is that this comes just as Labour has attempted to mount a defence of its record on social mobility - which the Cabinet Office's report suggests has improved, at least very slightly, since 2000. Pollyanna Toynbee naturally noted this and swiftly determined that the Tories would it wreck this slight improvement should they come to power. This is on top of a recent report from the OECD which found that also, since 2000, inequality had declined. The criticism isn't that the government hasn't tried, it has, although it has often tried to do so without soliciting attention, but that it hasn't done anywhere near enough. For all the spending on tax credits, notoriously complicated, open to fraud and only available to those over 25, the benefits have been slight. This is why increasing attention is being paid to the citizen's basic income, along with the proposal to lift the lowest paid out of tax altogether. To do so though would mean taxing the higher paid a higher rate, and to judge by the complete lack of backbone being displayed towards the bankers that we now own a share of, there simply isn't the political will for any such drastic changes to be made. When a Labour government seems to be abandoning the very basic foundations of what the party was built around, you have to wonder whether there ought to be a prosecution attempted against it under the Trades Descriptions Act.

Labels: , , , , , , ,

Share |

About

  • This is septicisle
profile

Archives

Powered by Blogger
and Blogger Templates