In Place of Austerity

Isn’t it amazing – some senior politicians not on the tea-party right are now suggesting that austerity may impede economic growth! Would you credit it? Who would have believed that deep cutting in a protracted recession could have such an effect?
In many postings on this blog I’ve mentioned particular policies and actions that I believe are needed to remedy our current parlous condition and move towards the common good. They differ very sharply from current policies and orthodoxies. In this posting I draw them together and add others in a similar vein.
Taxation:
 Flat rate National Insurance – all income levels above the minimum wage 40-hour income.
 Increase the top rate of income tax to approximately 53% to a total 60% with National Insurance contribution.
 Re-introduce a starter rate of 10% for income tax.
 Two higher bands of Council Tax.
 Introduce a financial transactions tax along with other European countries
 Introduce a windfall tax to deal with excessive profits and bonuses.
 Simplify the tax code removing loopholes and increasing penalties for evasion.
International:
 Take the lead in dealing with tax havens.
 Form an international group to identify ways to eliminate cheating in trade, abusive working practices, use of child labour, environmental damage etc. and start winding back adverse aspects of globalisation.
Public Expenditure and ownership:
 No further cuts to benefits with some restoration.
 No further cuts in grants to Local Authorities with some restoration.
 Greatly increased infrastructure spend especially transportation and power with some public ownership.
 Reform public sector purchasing with awareness of external effects and constructed to favour domestic suppliers.
 Renationalisation of and major investment in rail transportation.
 No further privatisations.
Governance:
 Introduce a well-resourced and proactive industrial policy.
 Vigorous decentralisation of Civil Service with relocation to regions.
 Return powers to Local Authorities and allow a much freer rein in terms of enterprise and income generation.
 Reform party political funding to reduce influence on policy and including an element of public funding.
Financial Sector:
 Allow Local Authorities to re-establish Municipal Banks.
 Break up the major banks to separate out retail banking.
Respect and Ethics:
 Produce agenda of respect and ethics to run throughout all organisations.
 Get business commitment and training with incentives if necessary.
Pay:
 Legislate to deal with excessive executive pay and bonuses to achieve similar extent of control as in public sector. This to include windfall taxes.
 Give incentives for companies to adopt a uniform pay structure across all levels and worker shareholding and board representation.
General:
 Clearer identification of goods made in England/UK.
 Have a ‘state approval’ scheme for food suppliers and promote use of domestic producers.
The above are examples intended to illustrate the scope, range and type of initiatives that I believe are needed to reform the economy, restore balanced growth and equity and enhance the common good. They are extracted from a lengthy tract I’ve written entitled ‘The Virtuous Economy, Respect and an Approach to the Common Good’. Much analysis would of course be required on details, levels and the projection of overall impact. But take heart my friends - it could be done if the will was there!