Caring, compassionate capitalism...contradiction

Capitalism, favouring private ownership, maximising private profit, decisions made by a free market, economic growth as the primary aim – is currently the subject of many party leader speeches. Reference has been made by Tory PM Cameron, Lib Dem Deputy PM Clegg and Labour Opposition Leader Miliband to making capitalism, as it currently works, more: responsible; moral; compassionate; caring – and thus popular and acceptable. This, at least, is an acknowledgement that capitalism is now operating: irresponsibly; immorally; uncaringly; without compassion – and that its popularity and public acceptability has suffered. However, along comes a chance for action that would send out a strong signal that significant change in the whole system is coming – and absolutely nothing is done, just as nothing was done by previous governments.The already very wealthy RBS boss Stephen Hester is allowed by the Govt to receive a bonus of about £1 million on top of his £1.2 million annual salary. RBS was saved using many billions of taxpayers money and is 82% publicly owned, the PM has said we are all in difficult economic times together, has said he wants to tackle excessive pay and bonuses...words, words, only words. See here, here and here for more.

The solutions offered up by the Tory/Liberal Govt, previous Tory and Labour Governments and the current Labour Opposition are those of capitalism – the very thing they have all described as deficient in some way. Coalition Ministers talk of: the importance of finance; the deficit and its ‘correction’ through cuts and freezing public sector pay; economic growth as essential; how we must remove obstacles to growth; how growth should be led by private enterprise; their pro-market, pro-business, pro-competition agenda. They say high taxes on rich people and companies could send them abroad. Private, market incentives are to operate in Royal Mail, the NHS and Higher Education. Has it occurred to them that solving the problems of capitalism with more capitalism may well be like solving the problems of alcoholism with more alcohol? Show me a version of capitalism that is or can be developed to be socially sustainable because it shares wealth fairly and environmentally sustainable because it does not rely on and run down finite resources and you will get my attention!!   

More posts on capitalism:

http://vowlesthegreen.blogspot.com/2010/01/when-will-bankers-like-this-get-their.html

http://bristol.indymedia.org/article/697599

http://vowlesthegreen.blogspot.com/2010/10/capitalist-ideology-dominates-cuts.html  

http://vowlesthegreen.blogspot.com/2008/09/cabot-circus-consumerism-capitalism.html
http://vowlesthegreen.blogspot.com/2010/11/house-of-cards-economics.html

Spot the odd one out

"We come in the traditions that have marched in peaceful but powerful protest for justice, fairness and political change.

"The suffragettes who fought for votes for women and won. The civil rights movement in America that fought against racism and won. The anti-apartheid movement that fought the horror of that system and won."

And the radical message was...

“There is a need for difficult choices, and some cuts. But, this government is going too far and too fast...”

...not radical at all! In fact the same as the Coalition Government but a little less and a little slower

http://www.independent.co.uk/news/uk/politics/colleagues-defend-miliband-rally-speech-2254550.html

Poor economics, poor politics

Unemployment is up by 35,000 to 2.5 million. At the same time inflation has risen to a six month high of 3.3%. More unemployment and more inflation is forecast in 2011 as the cuts in public spending and the VAT rise make their damaging economic and social impacts. Its crazy not to be stimulating key parts of the economy at this time - very poor economics from the Conservative-Lib Dem Coalition. Despite this situation Labour leader Ed Miliband only asked very briefly about the economy in today's questions to the Prime Minister. Ed and his team are weak on the economy, weak on defending Labour's record and the need for economic stimulus and weak on political strategy and tactics.

See http://www.bbc.co.uk/news/business-11998364 on unemployment
See http://www.bbc.co.uk/news/business-11996631 on inflation.

Effective Labour Shadow Cabinet?

I think its becoming pretty clear that Ed Miliband and his shadow cabinet are not performing well and not making an impact as an effective opposition (click image to enlarge). Why for instance did they not strongly make the point that the recent much bigger than expected economic growth figures are a result of Labour's policies and action whilst Alistair Darling was Chancellor? I'm not an economist but I know a bit about politics, decision making and complex systems, which includes economies. Its crystal clear that this coalition government cant possibly be responsible for the last set of growth figures because they've simply not been in power anything like long enough to have any effect.

There is a time lag between government economic policy/action and effects appearing so we'll only begin to see the impacts of the coalition government on growth as more months and years go by. We are however seeing the effects of the previous Labour government now. Labour's weak shadow treasury team failed to strongly point this out, made only lame comments and tended to talk down the economy. Ed Miliband and the shadow cabinet failed to go with what is both the truth and the best political strategy/tactic and take the credit for the growth figures - so maybe former Labour cabinet member Jack Straw was right when he said that a third of the new shadow cabinet is incapable - maybe its more than a third!

Wealth: water or diamonds? What is worth more to the thirsty and hungry?

Ed Miliband drew on the well known Oscar Wilde quote ‘What is a cynic? A man who knows the price of everything and the value of nothing.’ in his first conference speech as Labour leader. Strange coming from a man who directly equates ever increasing money flow through our economy (GDP growth) with progress and wellbeing. Ed, along with Tory David Cameron and Lib Dem Nick Clegg, supports and advocates a corrupted notion of wealth which is narrow, materialist and cash-value centred.

Wealth creation has come to mean the stockpiling of affluence, running down finite natural resources, wasting and mismanaging potentially renewable resources like water such that many people around the globe struggle even to get enough to drink and wash. What is worth more to the thirsty and hungry – water or diamonds?

‘Value’ is largely what can be bought and sold if you have Ed’s (and Dave’s and Nick’s) view. The rich continue to hoard, deny the poor, and build for their leisure, recreation and luxury. The poorest around the globe continue to be unable to meet their basic needs such as decent public clean water supply and healthy sewage disposal systems. In fact the rich (and relatively speaking that’s most of us living in the Western hemisphere) are rich precisely because others are poor – GDP growth, Ed’s, Dave’s and Nick’s primary focus, has been very large over many decades and in many countries but numbers unable to meet basic needs are also very high!

We are GDP growing out of proportion to the proper, healthy working of life support systems. These systems include: those that can continually supply rainwater; those that keep our climate in a reasonably stable balance; those that process our soils, keeping them productive; many that keep ecosystems in a diverse state. Furthermore, we are sapping the energies and threatening the existence of the whole interconnected water, air, soil and biodiversity system – yet this is the source of our resources and the basis of our lives and thus is our true wealth.

We are also GDP growing out of proportion to the healthy working of socio-economic systems. Acting on the notion of wealth creation as increasing money flow through our economy has resulted in relatively small numbers of individuals and institutions with inordinate, concentrated cash and property. This inequality and unfairness decreases quality of life and as time passes is increasingly destabilising. Very strange, then, that Ed – and Dave and Nick – talk so much about building a fair society.

To benefit people and planet, GDP growth needs to pass tests of: efficiency; renewability; respecting environmental limits; building stronger local communities; meeting needs now and in the future; local and global fairness; health, wellbeing and quality of life. This means taking a very different view of wealth.

For more on water and related issues see: http://blogactionday.change.org/

Ed Miliband: Labour saver?

Wallace is an inventor. His house is full of labour saving gadgets and gizmos, though they don't always go to plan! Though he looks like Wallace there is nothing much in Ed Miliband's first speech as new Labour leader to show that he is inventive and has Labour saving stuff - it had little substance at all in fact. It was plain wrong on a number of crucial points eg Ed said Britain was 'fairer and stronger than it was 13 years ago' - but the richest 10% are now 100 times richer than the poorest - hardly fair.

More on equality http://www.equalitytrust.org.uk/