French lessons for Miliband and Balls

“Take it from me mate, don’t…”

“Bliss was it in that dawn to be alive” wrote Wordsworth in middle age, reflecting on the euphoria his younger self felt at the French Revolution. Ed Miliband felt a similar sense of elation when François Hollande was elected President of France in May 2012 albeit expressed in slightly more prosaic terms.

Mr Miliband said that President Hollande’s campaign “has shown that the centre-left can offer hope and win elections with a vision of a better, more equal and just world”. Mr Miliband declared “This new leadership is sorely needed as Europe seeks to escape from austerity” and assured us that “I know from our conversations in London earlier this year and from [Mr Hollande’s] victory speech tonight of his determination to help create a Europe of growth and jobs”

Alas, since he spoke of President Hollande’s “determination to help create a Europe of growth and jobs” French unemployment has risen from 10.2% to 10.9% and Britain’s has fallen from 8% to 7.1%. The French economy has averaged growth of 0.13% per year while Britain’s has averaged 0.16% a year.

Mr Hollande’s strategy was to tax and spend France back to prosperity. A raft of new taxes, most notoriously a 75% top rate of income tax, would pay for the hiring of 60,000 new teachers, the creation of 150,000 subsidised jobs, and a reduction in the retirement age. This strategy has failed. Like Louis XIV’s revocation of the Edict of Nantes in 1685 which flooded east London with entrepreneurial Huguenots, Mr Hollande has simply driven the French men and women who can afford to leave out of the country. Those who can’t are left stuck with unemployment and stagnation, Mr Miliband’s “better, more equal and just world”.

Yet, just as Mr Hollande abandons this strategy in favour of a €30 billion payroll tax cut and €50 billion worth of spending cuts in the next two years, ‘austerity’ if you like, Ed Miliband’s Labour Party are committing themselves to it afresh. Last Friday Shadow Chancellor Ed Balls made one of his increasingly rare appearances and committed a post-2015 Labour government to eliminating the deficit by 2020. The tool with which he intends to achieve this is a reintroduced 50 per cent top rate of income tax.

Mr Balls apparently needs to learn the lesson so painfully learned by France; that as per the Laffer Curve, beyond a certain level increasing tax rates ≠ increasing tax revenues. Indeed, in the last two years of the 50 per cent rate, 2011/2012 and 2012/2013, top rate taxpayers paid £41.3bn and £41.6bn in tax respectively. Under the 45 per cent rate that amount has risen to £49.36bn. Ed Balls was immediately in the unusual position of having to explain how he would fund a tax rise.

This presents the Conservatives with an opportunity. David Cameron and George Osborne should be pointing across the Channel and saying that Hollande’s abandoned France of high taxes, high government spending, rising unemployment, and falling growth, is Miliband’s Britain.

Ultimately the high ideals of the French Revolution were drowned in the blood of the Terror, replaced by the dictatorship of Napoleon, and a disillusioned Wordsworth retired to the Lake District and Romantic poetry. What will it take to educate Mr Miliband?

Ed Miliband on banking

Ed-Miliband-006

Speaks for itself

It’s a funny thing is politics. Someone demonstrates that they have the skill set required to win an election and, in doing so, they assume responsibilities for which they have demonstrated no discernibly appropriate skill set at all. It might be fascinating to hear Alex Ferguson give a lecture on football tactics, but I’d skip his thoughts on string theory and quantum mechanics.

Take Ed Miliband. The son of a politician, the brother of another politician, he has spent his entire life in politics. What is there is this background which gives him any basis upon which to comment on banking, let alone very much else?

Yet that is what he did last July when he gave a speech at the Co-op bank saying 

“It is a pleasure to be here at the Co-op. You have always understood that ethics of responsibility, co-operation and stewardship must be at the heart of what you do.

That’s one of the reasons why the Co-Op bank has in the last week seen a 25 percent rise in applications for accounts.

It was your values that I was talking about last September when I said to the Labour Party conference that Britain needed a different kind of economy.

An economy based not on the short-term, fast buck, take what you can. But on long-termism, patient investment, and responsibility shared by all.

Not an economy based on predatory behaviour. But productive behaviour.

Not an economy that works just for a powerful, privileged few But an economy that works for all working people”

And now, a little less than a year later, the Co-op bank is bust.

We, perhaps, shouldn’t be too harsh on young Miliband. After all, like much of our political class, he has very little idea of how things work beyond politics so it shouldn’t come as much of a surprise when he talks such obvious rubbish about non-political topics.

But we ought to ask ourselves a question; why do we give politicians so much power over things they don’t understand in the slightest?

IDS is the heir to Beveridge

A jolly nice chap

“Iain Duncan Smith is scum” announced a former friend of mine on her Facebook wall recently. Actually, as anyone who has met him will attest, IDS is a perfectly affable chap. But he is sceptical of the present size and nature of Britain’s welfare state. This, apparently, makes him “scum”.

Between 2001 and 2007 British government spending increased by 54 percent in real terms. In nominal terms the coalition is actually raising spending even further, from £661 billion in 2010 to a projected £729 billion in 2015. What cutting is being done is coming from above target inflation so that, in real terms, spending will fall by 2.7 percent. And remember, that’s a real terms cut of 2.7 percent after a real terms increase of 54 percent.

But the reaction from sections of the left to this bare snipping has, as with my former friend, been nothing short of demented.

Nick Cohen frequently says very sensible things but at the end of the day he writes for the Observer and he has to sing for his supper – hence a steady flow of silly articles about barely existent ‘austerity’ and mythical ‘Tory cuts’. In a recent article he wrote that “Iain Duncan Smith’s universal credit poses a serious threat to women’s independence.” You actually have to ask how independent someone who is dependent on state welfare actually is in the first place, but to have done so would have been to intrude on the usual orgy of hysteria which accompanied the article.

One of Cohen’s Facebook friends commented, “Yes, yes, yes. Duncan Smith has a nasty agenda, fired by his own sense of Christian mission. A very creepy man.” Another warned that “The Tories especially are making attacks on the poorest, that are remarkably similar to the sort of thing the eugenicists of the nineteenth century used to say.” Sections of the left are currently consumed with lunatic levels of fear and loathing.

It never seems to occur to these people that someone could question the present size and nature of Britain’s welfare state from any motivation other than pure evil. It never enters their minds that someone might be critical of the welfare state as it stands for the simple reason that it is a massively expensive failure.

“Flat rate of subsistence benefit; flat rate of contribution”;

“Unemployment benefit will…normally be subject to a condition of attendance at a work or training centre after a certain period”;

“National assistance (a means tested benefit) is an essential subsidiary method in the whole plan…The scope of assistance will be narrowed from the beginning and will diminish”;

“Assistance…must be felt to be something less desirable then insurance benefit; otherwise the insured persons get nothing for their contributions. Assistance therefore will be given always subject to proof of needs and examination of means; it will be subject also to any conditions as to behaviour which may seem likely to hasten restoration of earning capacity”;

“The proposal to adjust benefit according to the rent actually paid by individuals should, provisionally, be rejected”.

These quotes, recommending conditions on eligibility for welfare, proposing a reduction of benefits over time, supporting the notion that benefits must not match employment income, and rejecting housing benefit, do not come from someone like Iain Duncan Smith who the contemporary left would brand as evil. They come, in fact, from the Report of the Inter-Departmental Committee on Social Insurance and Allied Services of 1942, written by William Beveridge, which laid the foundations for the welfare state.

Beveridge’s plan was, as James Bartholomew writes,

“very simple. Everyone would make flat-rate contributions to a national insurance scheme. Those who fell ill, became unemployed or reached retirement age would, in return, receive flat rate payments. That is it. The rest was detail”.

John Maynard Keynes reportedly told his friend Beveridge: “The Chancellor of the Exchequer should thank his lucky stars that he has got off so cheap”.

Keynes was wrong. Over the years Beveridge’s safety net became a vast hammock. Since the welfare state got under way in earnest in 1948, social security spending as a percentage of GDP has increased from 4 percent to nearly 14 percent; a 250 percent increase.

Source: IFS

Those on the right and this coalition government are often accused of launching an attack on the welfare state bequeathed us by Beveridge and the Attlee government. That ship has long since sailed. Beveridge’s welfare state died decades ago when it became the bloated, expensive, counterproductive monster it is today. And it wasn’t the right that killed it, the left did.

There is a new film out by dreary, overrated Marxist Ken Loach titled The Spirit of ’45. In it, among other things, Loach calls for the Brits of 2013 to resist coalition welfare reforms and redouble their commitment to state welfare spending. But that is not the spirit of 1945. The spirit of 1945 was of work, contribution, and insurance.

And that appears to be the spirit of 2013 too. As a recent report by the National Conversation found: “Wherever they stood on the political spectrum, we were told that the welfare system was broken, and that no one party held the answer to fixing it… A key concern, shared by respondents from different backgrounds, was the degree to which the modern welfare system had moved away from Beveridge’s original plans for social insurance. With the gradual erosion of Beveridge’s contributory principle, governments found themselves paying out ever larger welfare disbursements to people who had never paid into the system”.

Sensing this even Ed Miliband has begun making noises about “recognising contribution”.

Iain Duncan Smith is not “scum”. Rather, unlike Loach and Cohen and his loony friends, he is the heir to Beveridge. If the spirit of ’45 lives on anywhere, it is in the coalition’s welfare reforms.

This article originally appeared at The Commentator

Referendum reaction

The three stooges

There’s been more than enough reaction to Cameron’s referendum speech today without me clogging up your bandwidth with my two penneth. But, for the lulz, I thought I’d offer you this from my statist friend

“I think the average person’s attitude to an EU referendum would be “well, if Miliband, Cameron and Clegg are in favour and Nadine Dorries, Nigel Farage and Bob Crow are against, then given that by and large the former appear to know what they are talking about and have positions of responsibility and by and large the latter are raving nutters who you wouldn’t trust to run a whelk stall, and as I can’t be arsed to go onto the intricacies of the argument myself, I am going to vote to stay in”

Yes, you read that right. Someone saying that Cameron, Clegg, and Miliband “know what they are talking about” I don’t know about you, but if any of them told me the sky was blue I’d want to go out and check for myself.

Labour and the welfare bill

Labour-1957-poster

…and I’ve got some magic beans to go with that

Last week Britain’s coalition government, a bunch of “ideologically-crazed demagogues”, launched a “brutal assault” on “the poor”. Or so said Owen Jones. So what form did this heinous act of heartless, senseless barbarity take? It voted to increase some benefits at the rate that earnings increase rather than at the (sometimes higher) rate that prices increase.

That’s it.

The hysterical tone in which much of the left conducts debate in this country is crippling our ability to have a serious discussion about how to bring under control a government debt which is set to have risen by 60 percent by the end of this parliament even after so called ‘austerity’. Eminently sensible measures on Housing Benefit or legal aid have brought predictions of a “final solution” or the end of justice in Britain.

The simple, central fact of British political life is that the government’s debt is rocketing by £326 million every single day. If even reasonable changes to Housing Benefit, legal aid, or welfare, which consumes one third of all British government spending, generate such apoplectic fury from the left, how on earth are we supposed to make even a start on tackling our out of control debt? It’s a serious question. Too serious, it appears, for the likes of Owen Jones.

But what was Labour up to while the coalition was engaged in this Blitzkrieg on the poor? It was making impassioned speeches and voting for benefits to increase faster than the wages which pay for them.

In truth the divide between those who pay for and those who receive benefits is no longer as clear as it once was. We have always had universal benefits paid to even the rich, hence the spectacle of a journalist from a family on a six-figure income wailing about having her Child Benefit taken away.

But besides that we have another toxic legacy of Gordon Brown. During Labour’s time in office he erected a thicket of benefits so baffling, vast, and labyrinthine that much of the country ended up snared in it. Ever greater numbers of people in work started to receive welfare and, bizarrely, Labour regard this as an achievement.

The thinking behind it was cynical. Like some mob boss in Vegas putting everyone on the payroll so no one would ever grass him up to the Feds, Brown reasoned that if he could play sugar daddy to a sufficiently large section of the British public by showering them with benefits they would never vote him out of office. It’s why the number of British households receiving more in benefits than they paid in taxes rose from 43.8 percent in 2000/2001 to 48 percent in 2007/2008. That, you’ll remember, was a period of economic growth.

Compare the essential fiscal promises of the two parties. The Conservatives say ‘Vote for us and you can keep what you earn’; Labour says ‘Vote for us and we’ll take money off someone else and give it to you’

Labour, quite simply, would cease to have any point if it wasn’t for the confiscation of wealth and its redistribution to its supporters. Thus we had the nauseating spectacle of David Miliband, who earned £125,000 for 15 days work as a director of Sunderland, accusing the welfare bill of being “rancid” as he argued for people on an average wage of £26,500 to pay more than the £3,100 per year they already do towards welfare.

Two-time Labour Prime Minister Harold Wilson once said that “The Labour Party is a moral crusade or it is nothing.” It is now worse than nothing. It is a cynical, vote-buying machine, funded with other people’s money. That’s what they trooped through the lobbies for last week.

This article originally appeared at The Commentator

Crisis of statism, not capitalism

In search of that magic money tree

t might not have been the ‘crisis of capitalism’ which some have been waiting so long for, but it is widely thought that the last few years certainly represent a “crisis of capitalism”. But if you think of capitalism as a system whereby profits and losses acting unhindered by the hand of government guide capital to its most productive uses, this is difficult to sustain.

The sectors which blew up and took the rest of the economy with them were riddled with intervention. Banks have their capital adequacy rates set and their bad investments covered by government. The housing market is kept inflated with all manner of tax breaks and politically motivated distortions like Fannie Mae, Freddie Mac, and the Community Reinvestment Act. Behind it all interest rates are set by a small panel of political appointees, much as the price of alum keys was set in the Soviet Union.

But as we see violence on the streets of Athens and Madrid, the Occupy protests in the United States, and unadulterated rage on the pages of The Guardian’s Comment is Free (Cif), there is certainly some sort of crisis afoot. It is, however, a crisis of big government.

Over the last few decades governments throughout the western world have made extravagant spending commitments. In Ireland the welfare budget was tripled. In Greece pastry chefs, radio announcers, hairdressers, and steam bath masseurs were included among 600 professions deemed so “arduous and perilous” that workers could retire at 50 on a state pension of 95 percent of their final salary.

But it wasn’t just small basket case economies doing it; big basket case economies were doing it too. France decided that its workers could work no more than 35 hours a week and still generate the wealth to pay for everyone to retire at 60 and spend a third of their lives as state pensioners. In the United States the Bush administration launched the largest expansion of Federal spending since Lyndon Johnson’s Great Society program of the 1960s. In Britain the Labour government increased spending by more than half in six years.

As long as you didn’t look either too closely or too far ahead, these massive spending commitments looked just about affordable as long as there was plenty of money to spend. And there was. In Britain tax receipts rose by 40 percent between 2001 and 2007. In the United States, Federal tax revenues rose by 30 percent between 2000 and 2007. French tax revenue increased by 30 percent between 2002 and 2008.

But these were the effects of the bubble. These were taxes swelled by property values, house sales, and bank profits on those house sales and the myriad ancillary transactions such as securitisation. With the bursting of that bubble that wealth is gone, if it was even there in first place, and it is not coming back. Nor should it.

That does mean, however, that lots of the extravagant government spending promises made before the bust now stand revealed for what they are; unaffordable in the absence of bubble taxation. And given the undesirability of bubbles, that just makes them unaffordable full stop. No amount of general strikes, protesting, occupying, or posting on CiF will change that. We do not have a mighty oak of a money tree, but a bunce bonsai and, in truth, that’s all we ever did have.

Since the crisis hit we have seen both the unavoidability of this truth and the reluctance of electorates to accept it. In the last few years the voters of Greece, Spain, and France have voted out ‘austerity’ governments only to have ‘austerity’ visited upon them anyway by their replacements (at least they were asked, unlike the Italians). There is a very good chance that this November and in May 2015 the voters of the United States and United Kingdom will discover that reality doesn’t just disappear because you tick a box marked ‘Obama’ or ‘Miliband’.

The amount of money spent by the government has grown inexorably. We have reached its limit. In Britain, since 1964, whether top rates of tax have been at 83 percent, as in the 1970s, or 40 percent, the percentage of national income paid in taxes has never exceeded 38% of GDP.

Whatever the designs of the politicians, the social democrats, the Labour party, the Guardian, or Polly Toynbee, the British people, collectively and unconsciously, seem to have decided that they are not willing to fund a state sector any bigger than this. When the share of state spending as a share of GDP reaches 45 percent or 50 percent, as it has recently, the only way is down. That is where we are now.

If the extravagant spending promises of politicians outstrip both the capabilities of even a well-functioning capitalism to generate the necessary wealth and the public’s willingness to pay for it, that is not capitalism’s crisis, but a crisis of big government. Its time is up.

This article first appeared at The Commentator

The life and death of Eric Hobsbawm

Eric Hobsbawm, 1917 – 2012

In his dotage in the 1990s a respected academic historian, author of bestselling books, and lifelong Nazi was interviewed for the Times Literary Supplement about his youthful commitment to Hitler. The interviewer asked “What that comes down to is saying that had the radiant tomorrow actually been created, the loss of fifteen, twenty million people might have been justified?”

The historian replied instantly; “Yes”

Of course, that never happened but something almost identical did.

In his dotage in 1994 a respected academic historian, author of bestselling books, and lifelong Marxist was interviewed for the Times Literary Supplement about his youthful commitment to Stalin. The interviewer asked “What that comes down to is saying that had the radiant tomorrow actually been created, the loss of fifteen, twenty million people might have been justified?”

Eric Hobsbawm, who died yesterday aged 95, replied instantly; “Yes”

It is one of the great mysteries of intellectual life in the last few decades that anyone who confesses to a youthful flirtation with Nazism or fascism is shunned by polite society until a sufficiently long and intense period of penance had passed, while a youthful fondness for communism is presented as one of those harmless things we all go through, like collecting football stickers.

During the 20th century the miserable ideology of communism slaughtered millions and immiserated millions more. Between the Ukrainian famine and purges of the 1930s, the gulags, Mao’s Great Leap Forward and Cultural Revolution, and the Killing Fields of Cambodia, to the insanity of Mengistu in Ethiopia, communism was responsible for as many as 94 million deaths in the last century.

To paraphrase Montesquieu, there has never been a kingdom given to so much bloodshed as that of Marx.

And yet we don’t regard it with the same abhorrence as Nazism. Instead, the death of Eric Hobsbawm is mourned.

Ed Miliband said that this apologist for totalitarianism “cared deeply about the political direction of the country.” More, one hopes, than he cared for the millions whose deaths he excused.

For the BBC Nick Higham wrote that “Eric Hobsbawm was remarkable among historians in being proud to call himself a Marxist long after Marxism had been discredited in the West.” Hobsbawm was remarkable for no such thing. He was remarkable for his slavish devotion to the Soviet Union long after its full horror had been exposed. As Michael Moynihan wrote:

“When the bloody history of 20th-century communism intrudes upon Mr. Hobsbawm’s disquisitions, it’s quickly dismissed. Of the countries occupied by the Soviet Union after World War II—’the Second World War,’ he says with characteristic slipperiness, ‘led communist parties to power’ in Eastern and Central Europe—he explains that a ‘possible critique of the new [postwar] socialist regimes does not concern us here.’

Why did communist regimes share the characteristics of state terror, oppression and murder? ‘To answer this question is not part of the present chapter.’ Regarding the execrable pact between Nazi Germany and Stalinist Russia, which shocked many former communist sympathizers into lives of anticommunism, Mr. Hobsbawm dismisses the ‘zig-zags and turns of Comintern and Soviet policy,’ specifically the “about-turn of 1939–41,”‘which “need not detain us here'”.

In 2002 Hobsbawm wrote “To this day I notice myself treating the memory and tradition of the USSR with an indulgence and tenderness.” Imagine a historian writing that about Nazi Germany and getting a 21 gun salute from the BBC.

Hobsbawm became a Marxist while living in Germany in the early 1930s. Like many during that time he saw a straight choice between communism and Nazism. He wasn’t alone in lacking the imagination to see the alternative of liberal democracy and many embraced totalitarianism of one colour or other.

But few embraced it with Hobsbawm’s vigour. In August 1939 erstwhile foes Hitler and Stalin signed the Nazi-Soviet Pact making Nazis and communists allies until Hitler’s invasion of the Soviet Union in June 1941. Many communists severed ties with Moscow in disgust but, as Nick Cohen points out, Hobsbawm remained a loyal propagandist for Stalin which in practice meant Hitler too.

Hobsbawm traveled to the Soviet Union in 1954 but noted that “It was an interesting but also a dispiriting trip for foreign communist intellectuals for we met hardly anyone there like ourselves.” To quote Nick Cohen again,

“If he had gone to Siberia, alongside the corpses of “anti-Soviet” Ukrainians, Lithuanians, Estonians, Latvians, Chechens, Tartars and Poles, of tsarists, kulaks, Mensheviks and social revolutionaries and of merely unlucky citizens who had been denounced by malicious neighbours, or rounded up by the secret police to meet an arrest quota, Hobsbawm would have found the bodies of communist intellectuals – just like him”

In 1956 the Communist Party of Great Britain again fractured over Soviet policy, this time the brutal conquest of Hungary which left possibly 2,500 Hungarians dead. Hobsbawm supported the invasion.

Time and again Eric Hobsbawm was faced with the full scale of the horror visited by the regime he supported and time and again he remained loyal. As he wrote in 2002

“The Party . . . had the first, or more precisely the only real claim on our lives. Its demands had absolute priority. We accepted its discipline and hierarchy. We accepted the absolute obligation to follow ‘the lines’ it proposed to us, even when we disagreed with it . . . We did what it ordered us to do . . . Whatever it had ordered, we would have obeyed . . . If the Party ordered you to abandon your lover or spouse, you did so”

Hobsbawm pleaded for “historical understanding”; he isn’t hard to understand. He was a man who failed to see that the choice of one murderous regime over another was no choice at all, who lacked the humility to admit it, and who was possessed of an incredible ability to blind himself to realities, no matter how bloody, which didn’t fit his view of the world.

Hobsbawm was the Marxist version of David Irving. Why is his death any more worthy of mourning?

This article originally appeared at The Commentator

Time for an economic Nuremberg for the last Labour government

The guilty men

ike an iceberg, the extent of the damage wrought by the last Labour government is still becoming apparent.

One of the wheezes Labour used to camouflage its vast spending spree was the Private Finance Initiative. These had been brought in by John Major’s Conservatives (to criticism from the then Labour opposition) and involved a private sector entity building something and then selling it or leasing back to the government over a number of years, usually decades.

Upon winning the election in 1997 however, Labour performed a volte face and embraced PFIs. They appealed to Gordon Brown because the liabilities taken on under PFIs would not show up on the government’s balance sheet. In other words, they wouldn’t be included in the national debt figure.

Labour signed up to an estimated £229 billion of PFI projects. That’s almost two and a half times the entire projected budget deficit for 2012 – 2013, or 16 percent of GDP.

And all of it was off the books. This enables Labour supporters to argue that “Public sector net debt (as a percentage of GDP) FELL from the start of Labour’s time in government until the beginning of the global financial crisis”. But, if you include the PFI liabilities the Labour government signed us up to, any fiscal improvement during their time in office vanishes and this already thin argument does likewise.

Perhaps Brown was stupid and/or hubristic enough to believe he really had banished “Tory boom and bust”. Perhaps he calculated that he would be long gone before the bills for PFI landed on the mat. Either way, while in the long run Brown is (thankfully) politically dead, we taxpayers are not.

Last week it emerged that six NHS trusts were facing bankruptcy thanks to the PFI deals struck by the Labour government. As the Telegraph reported

The total value of the NHS buildings built by Labour under the scheme is £11.4bn. But the bill, which will also include fees for maintenance, cleaning and portering, will come to more than £70bn on current projections and will not be paid off until 2049…Some trusts are spending up to a fifth of their budget servicing the mortgages…Across the public sector, taxpayers are committed to paying £229bn for hospitals, schools, roads and other projects with a capital value of £56bn”

Indeed, like the cat who leaves little ‘presents’ around the house for you to discover when you return from holiday, the Labour government of 1997 to 2010 is the gift that keeps on crapping on your carpet. We will be discovering fiscal turds left by Labour for literally decades to come.

If you were being charitable you would ascribe the fiscal incontinence of the Blair/Brown governments to some sort of Keynesian economic theory, though that fails to explain why they applied fiscal ‘stimulus’ for seven years to an already growing economy.

If you were being slightly less charitable you might ascribe it to incompetence of a quite staggering degree. The last Labour government, after all, were probably the biggest set of mediocre idiots ever to govern this country.

And, if you were being even less charitable, you might ascribe it to something more sinister – Brown poisoning the wells when he heard opposition tanks at the end of his strasse.

The architects of this national disaster have moved on. Blair is swanning around the globe earning millions. Brown is off brooding somewhere and probably enjoying it. Ed Balls, Brown’s right hand man through all this, is now, incredibly, Labour’s shadow minister for the economy!

We will have to live with the consequences of their mismanagement for years, why should they get away scot free? When we look at the continuing harm the Blair/Brown governments did to Britain shouldn’t we consider some sort of economic Nuremberg for these people? To punish them, Blair, Brown, and Balls, for the harm they have done to the British public?

Of course, you could argue that the electorate is responsible for electing these dangerous cretins. After all, every single majority Labour government in history has left office (in 1931, 1951, 1970, 1979, and 2010) with the economy in meltdown. Assuming that Labour voters aren’t so stupid that they don’t know this you have to conclude that they simply don’t care if the economy collapses.

In the wake of the Barclays rate fixing scandal, Ed Miliband has called for a full public inquiry into the banking industry, saying, “If you go out and nick £50 from Tesco, you are punished, at least we hope that you are punished – if you fiddle, lie, cheat to the tune of millions of pounds, you should also have the full force of the law brought against you.”

As Britain’s economy continues to smoulder isn’t it time for Miliband’s former colleagues in the wretched Labour government of 1997 to 2010, Tony Blair, Gordon Brown, and Ed Balls, to face a reckoning for the continuing damage they wrought upon the nation?

 

EU referendum and the political class

“This guy cracks me up”

Poor old Gerald Ford was derided for, apparently, being unable to walk and chew gum at the same time. But today’s front rank (sic) British politicians are open about their inability to do two things at once.

As momentum grew in the Conservative parliamentary party for a referendum on membership of the ailing European Union, David Cameron and Ed Miliband both said that to hold one would be a “distraction” from the more pressing business of saving the euro.

On Sunday night it became clear that what David Cameron couldn’t be distracted from was being told to sod off by Nicholas Sarkozy. Pressing business indeed.

Referendums are a very un-British way of doing things. We had them in Scotland, Wales and Northern Ireland over devolution, but UK-wide we have only had two since the Second World War; on membership of the then European Economic Community in 1975 and over the Alternative Vote this year. Edmund Burke’s notion of representative democracy reigns supreme.

But there is a growing feeling that it has been abused. Power in the United Kingdom resides with the people. At each general election we loan it to a political grouping for, at most, five years. But it remains ours. It is not theirs to give away.

And that is exactly what has happened. Despite being told after every EEC, EC or EU treaty that this represents the absolute limit of federalist expansion, within a couple of years the leaders of the European Project are always back asking for more. And they always get it.

The history of British dealings with Euro-federalists is that the Federalists ask for 100 percent, we give them 80 percent, and we call the 20 percent a victory for sovereignty.

This slow transfer of power over the British people to a foreign body has been either endorsed or permitted by successive British governments. And it has been endorsed or permitted by successive oppositions.

But it is not what the people, the owners of this power, want.

Predictably, plenty of Conservative Party members, 72 percent, support the motion. But it goes wider than that. Opinion poll after opinion poll, year after year, has shown the British people to be hostile to the European Union.

In July pollsters Angus Reid found that 49 percent would vote to leave it. Last month YouGov found that 47 percent wanted to leave. 67 percent support the motion for a referendum which goes before the Commons tonight.

But, barring a Parliamentary miracle, they won’t get one.

David Cameron has set his face against this vote wheeling out the heavy artillery of a three line whip and issuing threats about the career prospects of any rebels. In contrast to the kid gloves approach to the Liberal Democrats over the ludicrous Human Rights Act, Cameron has finally found an enemy and an issue worthy of some steely determination; his own back benchers and Europe.

This is an issue which goes wider than one arrogant, elitist politician. Gordon Brown famously called one of his own party’s voters who raised some perfectly valid if clumsily worded questions about immigration a “bigot”.

Lord Glasman, the ‘thinker’ behind ‘Blue Labour’, was excommunicated by the Party after saying “We have to put the people in this country first…We should be more generous and friendly in receiving those [few immigrants] who are needed. To be more generous, we have to draw the line.”

The Labour Party leadership is wedded to the idea of mass immigration but, like most voters, Labour voters aren’t. Research by Demos found that 28 percent of Labour voters think that “Britain should limit the number of people coming from other countries to live and work here because, on balance, they damage our economy and society”. And when these voters feel sufficiently ignored they go off and vote for the British National Party.

It is difficult to avoid the conclusion that both the Conservative and Labour parties are run by people who don’t like Conservative or Labour voters very much.

And more broadly, whether you are a working class white person in an ethnic area of Oldham who’s child is one of the few English speakers in their school or whether you’re a squire in the home counties with a £ lapel badge, our political class doesn’t like you very much. Your desires are inconvenient to its aims.

In his poem ‘The Solution’ Bertolt Brecht wrote

After the uprising of the 17th of June

The Secretary of the Writers Union

Had leaflets distributed in the Stalinallee

Stating that the people

Had forfeited the confidence of the government

And could win it back only

By redoubled efforts. Would it not be easier

In that case for the government

To dissolve the people

And elect another?

Who needs to dissolve the people when, as our leaders do, you can just ignore them?

This article originally apperared at The Commentator

Things will only get worse for Labour until they discuss voters’ inflation concerns

Hands up if you’re being screwed by inflation

AS LABOUR gathered in Liverpool for its party conference this week, one of their top priorities was to fashion a message on the dominant issue in British politics today: the economy. They failed.

FISCAL FAILURE

On the fiscal side, the shadow chancellor Ed Balls, unveiled an economic recovery package that seemed like it had been drawn up by a right-wing blogger taking the mick; it simply amounted to borrowing and spending more money. He refused to apologise for Labour’s borrowing – even when the economy was growing – to spend on its public sector client state. But considering that the beneficiaries of that largesse are Labour’s core vote and paymasters his hands are pretty much tied.

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