The outrage over horse and pig meat in burgers (and what else?) is entirely warranted and, once the realisation has sunk in, it is clear that something like this could have been expected. Commercial values and behaviour haven’t changed much - if at all - since the BSE/CJD crisis where animals were fed remains from their own species - all driven by profit greed, cost cutting, inadequate inspection and regulation and a complete lack of moral values and respect for the consumer.
To this is now added yet another wonder of globalisation where what passes for food can come from all over the place instead of being sourced locally and more easily traced. The regulation, such as it was, was of the ‘light touch’ variety beloved of the world of low finance. It was set to get still lighter, or at least even more confused. Perhaps minds will be changed, if only for a little while until it is assumed that punters and voting fodder can be assumed to have forgotten.
Regulation of many private sector dominated industries, particularly those with a consumer focus, needs to be tightened up rather than loosened – as does tax collection. And this goes well beyond banking and food and beverage retailing. Any future easement should only follow a clear demonstration that proper respect is being shown towards ordinary consumers rather than their being treated with contempt such as the recently quoted example of air passengers being referred to as ‘self-loading freight’.
But back to those disgusting burgers – although maybe not just yet. Tesco – don’t apologise and expect to have gotten away with it, change your values and your behaviour and prove to us that you’ve done so. Start respecting customers and stop piling the profit-derived pressure on farmers and food suppliers to meet unrealistic, dangerous and ill considered price reductions. Show some respect for people as well as mammon – then perhaps you’ll deserve to get some of your lost business back.
Wednesday, 23 January 2013
Saturday, 19 January 2013
Saving the Economy – and Savers
As the economy continues to bump along the bottom it is clear that by any criterion the policy of austerity is not working. And it will never do so especially if the reaction of the government to each failure is to apply even more austerity – usually to less well off people.
So it is abundantly clear that effective measures need to be taken to stimulate the economy. In doing this, careful consideration must be given to the form that the stimuli should take and the effects that the measures have on different groups of people. In this regard my opinion is that we need to assist the long-suffering saving community.
There has been far too much reliance on keeping official interest rates pegged down. The consequences feed directly through to savers although some personal borrowers, especially the less well off, are nonetheless charged horrendous, usurious rates quite legally.
Instead, there should be a much greater emphasis on public works such as useful aspects of transport infrastructure, particularly rail (and I do not refer to HS2 here), power generation and increasing the nation’s pitiful fuel and water storage capacities.
In the present circumstances the historic low and sustained bank rate and massive ‘quantitative easing’ have had only limited positive impacts on the real economy as we continue to endure the worst recession since the 1930s. Furthermore, rock bottom interest rates hit savers immediately and have only been partly passed on (in some cases loan charges have even been put up by banks) to those borrowers that can secure loans.
Savings are the bedrock on which long term investment should be built. Not only this, but savers, particularly older people in or near retirement, have had their incomes severely reduced by interest rates that continue to be at derisory levels on savings accounts - even at banks such as the Co-op that it might be thought had retained some shred of respectability.
Ways must be found to moderate this highly adverse impact on responsible people who are trying to live within their means, provide for themselves and indeed set a good example to others.
Furthermore, the economic effect of interest rate cuts can, under some conditions, be the opposite of that intended. The substantial income reductions for savers mean that they have less money available to spend and so stimulate the economy. For example, in Japan in the 1990s the experience was that as interest rates were pared back people saved even harder to make up for the lost income and succeeded in further deflating the economy.
As we have seen, it is certainly no use relying on the commercial banks to support small businesses or to be reasonable about the interest rates as applied to savers. Therefore action needs to be taken by the Government.
We certainly need banks that are operated in the interest of the economy and society as a whole and which provide secure and reasonable returns to savers. If central government won’t provide such a bank then local authorities should be encouraged and enabled to step in to act in the public interest.
Here in Birmingham this would mean re-instating the late lamented Municipal Bank. Why do I keep on putting this idea forward? Because hopefully it will become clear in the fullness of time and the depths of austerity that the commercial banks are useless.
So far as ordinary people and small firms are concerned, politicians must stop deceiving themselves that their friends and bankrollers in high finance will ever consider the people, the economy, the nation and the common good as much as their ever-beloved bonuses.
So it is abundantly clear that effective measures need to be taken to stimulate the economy. In doing this, careful consideration must be given to the form that the stimuli should take and the effects that the measures have on different groups of people. In this regard my opinion is that we need to assist the long-suffering saving community.
There has been far too much reliance on keeping official interest rates pegged down. The consequences feed directly through to savers although some personal borrowers, especially the less well off, are nonetheless charged horrendous, usurious rates quite legally.
Instead, there should be a much greater emphasis on public works such as useful aspects of transport infrastructure, particularly rail (and I do not refer to HS2 here), power generation and increasing the nation’s pitiful fuel and water storage capacities.
In the present circumstances the historic low and sustained bank rate and massive ‘quantitative easing’ have had only limited positive impacts on the real economy as we continue to endure the worst recession since the 1930s. Furthermore, rock bottom interest rates hit savers immediately and have only been partly passed on (in some cases loan charges have even been put up by banks) to those borrowers that can secure loans.
Savings are the bedrock on which long term investment should be built. Not only this, but savers, particularly older people in or near retirement, have had their incomes severely reduced by interest rates that continue to be at derisory levels on savings accounts - even at banks such as the Co-op that it might be thought had retained some shred of respectability.
Ways must be found to moderate this highly adverse impact on responsible people who are trying to live within their means, provide for themselves and indeed set a good example to others.
Furthermore, the economic effect of interest rate cuts can, under some conditions, be the opposite of that intended. The substantial income reductions for savers mean that they have less money available to spend and so stimulate the economy. For example, in Japan in the 1990s the experience was that as interest rates were pared back people saved even harder to make up for the lost income and succeeded in further deflating the economy.
As we have seen, it is certainly no use relying on the commercial banks to support small businesses or to be reasonable about the interest rates as applied to savers. Therefore action needs to be taken by the Government.
We certainly need banks that are operated in the interest of the economy and society as a whole and which provide secure and reasonable returns to savers. If central government won’t provide such a bank then local authorities should be encouraged and enabled to step in to act in the public interest.
Here in Birmingham this would mean re-instating the late lamented Municipal Bank. Why do I keep on putting this idea forward? Because hopefully it will become clear in the fullness of time and the depths of austerity that the commercial banks are useless.
So far as ordinary people and small firms are concerned, politicians must stop deceiving themselves that their friends and bankrollers in high finance will ever consider the people, the economy, the nation and the common good as much as their ever-beloved bonuses.
Sunday, 13 January 2013
The true basis of Social Security
I would have thought that it was obvious that in a coherent civilised society we all support each other. This is the true basis of social security. But to read repeated comments in the right wing press (i.e. most of the printed media) about how older people will become an ‘increasing burden’ on younger people in the future, there are those among us who have a much narrower outlook.
This is at a time when, having initially given the impression of being on the side of pensioners, the coalition parties are now looking for every possible way to minimise this commitment and maximise claw back. Witness the attempted redefining of RPI (to give lower values and consequent lower upratings of course) and the talk about cutting winter fuel allowances, travel passes and TV licenses for supposedly ‘better off’ pensioners.
All this as if current and soon-to-be pensioners were not contributing substantially already. All pensioners with savings (i.e. most of this generation) have been severely hit by the artificially and historic low interest rate policies, losing hundreds or thousands of pounds in interest every year. Annuity values for those coming up for retirement have also tanked as another consequence of the nailing down of interest rates.
There is also the practice of the financial cartel in salami slicing the interest rates on Isas so that there’s now hardly any benefit from the tax-free nature of these investments. Another thank you to our wonderful financial services ‘industry’. In this regard building societies have been infected with the same ‘squeeze the punters’ attitude to savers as have the banks.
All of this represents a massive transfer from the older generation to those much younger people who have run up debts or who have mortgages – or both. How much longer pensioners can continue supporting borrowers to this extent is unclear but no doubt we’ll soldier on and reflect on all that was built up in our society (prior to the curses of globalisation, cutting and privatisation) during our most active years?
Despite this wretched government's favouritism towards the truly wealthy there is still a sense in which we are all in this together across the generations. Taking a long view also involves a look at the past and the near present - especially the last four years - as well as projected futures. So let’s understand that we have a mutually supportive society – something that’s going to be needed as the age of austerity is dragged on by misconceived policies.
This is at a time when, having initially given the impression of being on the side of pensioners, the coalition parties are now looking for every possible way to minimise this commitment and maximise claw back. Witness the attempted redefining of RPI (to give lower values and consequent lower upratings of course) and the talk about cutting winter fuel allowances, travel passes and TV licenses for supposedly ‘better off’ pensioners.
All this as if current and soon-to-be pensioners were not contributing substantially already. All pensioners with savings (i.e. most of this generation) have been severely hit by the artificially and historic low interest rate policies, losing hundreds or thousands of pounds in interest every year. Annuity values for those coming up for retirement have also tanked as another consequence of the nailing down of interest rates.
There is also the practice of the financial cartel in salami slicing the interest rates on Isas so that there’s now hardly any benefit from the tax-free nature of these investments. Another thank you to our wonderful financial services ‘industry’. In this regard building societies have been infected with the same ‘squeeze the punters’ attitude to savers as have the banks.
All of this represents a massive transfer from the older generation to those much younger people who have run up debts or who have mortgages – or both. How much longer pensioners can continue supporting borrowers to this extent is unclear but no doubt we’ll soldier on and reflect on all that was built up in our society (prior to the curses of globalisation, cutting and privatisation) during our most active years?
Despite this wretched government's favouritism towards the truly wealthy there is still a sense in which we are all in this together across the generations. Taking a long view also involves a look at the past and the near present - especially the last four years - as well as projected futures. So let’s understand that we have a mutually supportive society – something that’s going to be needed as the age of austerity is dragged on by misconceived policies.
Wednesday, 9 January 2013
Dare to be Different
Many Western societies including our own are becoming organisationally dysfunctional and failing to serve the people – apart from the very rich. First there is the aberrant version of capitalism with which we are afflicted and which functions for the benefit of speculators, bankers, other disloyal outfits and the top few percent of the population. It increasingly fails to serve he majority who seek to work, work hard and pay their taxes. It sees them as milch cows from which to extract as much profit as possible – witness the banks, fuel and power companies, insurance companies and rail companies to name but a few – and pays no regard to employment exporting more jobs than goods. More than ever distant from a social market economy operating for the common good it is one reason why the gap between rich and poor continues to widen.
Then there is the political system and the lamentable government that arises out of it. One absolutely vital ingredient of a democratic political system fit for purpose is having the right amount of policy difference between parties so that the options placed before the electorate represent real alternatives that would lead to different trajectories and outcomes for society. But these days in this country you can hardly get a tissue paper between the policies of the main parties. For example none will contradict cutting and austerity even though this plainly and demonstrably does not work. At least two of the main parties actually believe in austerity as an economic policy. The third believes that the idea of cutting has been sold to the public and they are too frit to gainsay this and come forward with genuine Keynesian policies. There is thus effectively an informal political cartel forever looking over their shoulders and using the same focus group approach equally devoid of principle, courage or even an awareness of economic history.
What does it matter who gets elected if the policy choices are austerity, austerity or austerity? And of course it will continue not to work. Cuts push the domestic economy down and as countries, being each other's export markets, pile on the misery it is no use looking abroad. That only works if the others have different, more sensible and effective policies on which we can take a free ride. That isn't going to happen, as they all want export led recoveries. Instead we have national and international economic prescriptions equivalent to the 18th century medical 'cures' of leaches and bleeding. If the patient isn't recovering - then bleed some more.
This accounts for the interest in the United States with its mild Keynesian policies doing so much better than Europe. But for our cousins there the political situation is rather different. Their political system has been rendered dysfunctional by the capture of the Republican Party and much of the media by elements holding extreme right wing views and fat wallets. Checks and balances built into the constitution produce policy deadlock when faced with idiotic policies and a relentless, irrational and doctrinaire, refusal to compromise. Their Founding Fathers did not like the idea of political parties - you can now see why - and did not foresee the blight of spiteful intransigence with which their system is now afflicted.
The big worry is that short of a catastrophic upheaval here and elsewhere there is no evident solution to all of this - not even in the medium term. Elections need to matter, the common good should be to the fore, a basic morality should prevail and loyalty to community and country should permeate our economic as well as our social life. That's the essential change that we need to see along with an unwinding of globalisation. And yes, this latter could be done if the will was there in major western economies. The mutation of economic and political processes has taken deep hold but both are human creations not laws of nature as Smith and Marx would have had us believe. The economic and social world is what we choose to make it. Let’s hope there will be some real choices before us in the future.
Then there is the political system and the lamentable government that arises out of it. One absolutely vital ingredient of a democratic political system fit for purpose is having the right amount of policy difference between parties so that the options placed before the electorate represent real alternatives that would lead to different trajectories and outcomes for society. But these days in this country you can hardly get a tissue paper between the policies of the main parties. For example none will contradict cutting and austerity even though this plainly and demonstrably does not work. At least two of the main parties actually believe in austerity as an economic policy. The third believes that the idea of cutting has been sold to the public and they are too frit to gainsay this and come forward with genuine Keynesian policies. There is thus effectively an informal political cartel forever looking over their shoulders and using the same focus group approach equally devoid of principle, courage or even an awareness of economic history.
What does it matter who gets elected if the policy choices are austerity, austerity or austerity? And of course it will continue not to work. Cuts push the domestic economy down and as countries, being each other's export markets, pile on the misery it is no use looking abroad. That only works if the others have different, more sensible and effective policies on which we can take a free ride. That isn't going to happen, as they all want export led recoveries. Instead we have national and international economic prescriptions equivalent to the 18th century medical 'cures' of leaches and bleeding. If the patient isn't recovering - then bleed some more.
This accounts for the interest in the United States with its mild Keynesian policies doing so much better than Europe. But for our cousins there the political situation is rather different. Their political system has been rendered dysfunctional by the capture of the Republican Party and much of the media by elements holding extreme right wing views and fat wallets. Checks and balances built into the constitution produce policy deadlock when faced with idiotic policies and a relentless, irrational and doctrinaire, refusal to compromise. Their Founding Fathers did not like the idea of political parties - you can now see why - and did not foresee the blight of spiteful intransigence with which their system is now afflicted.
The big worry is that short of a catastrophic upheaval here and elsewhere there is no evident solution to all of this - not even in the medium term. Elections need to matter, the common good should be to the fore, a basic morality should prevail and loyalty to community and country should permeate our economic as well as our social life. That's the essential change that we need to see along with an unwinding of globalisation. And yes, this latter could be done if the will was there in major western economies. The mutation of economic and political processes has taken deep hold but both are human creations not laws of nature as Smith and Marx would have had us believe. The economic and social world is what we choose to make it. Let’s hope there will be some real choices before us in the future.
Wednesday, 2 January 2013
Honouring Tolkien
Tolkien himself, ever modest, would probably have been surprised by this enthusiasm and the efforts that are made by local communities to commemorate and mark his legacy.
This year, the Tolkien Society is encouraging people to read Tolkien’s 1937 book ‘The Hobbit’ in the light of the success of Sir Peter Jackson’s recently released film: ‘The Hobbit: An Unexpected Journey’. The occasion of this year’s Birthday Toast will tie together the man himself, the books and the films – the Society will be encouraging people to talk about all of these on Facebook, Twitter and on its website, The Tolkien Society You can also be part of this at home or wherever you happen to be in a straightforward way. If you would like to join in, then at 9 in the evening by your local time, face West, raise a glass (containing whatever you like) and make the simple toast to 'The Professor'.
Birmingham is justly proud of its many close links with Tolkien and as a city we should do all that we can to increase the ways in which his unique legacy is commemorated. Tolkien was a Birmingham resident during his formative years and described himself as ‘a Birmingham man’. Each year in May Tolkien’s cultural legacy is celebrated at the unique, community-led Middle-earth Weekend that is held at Sarehole Mill.
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