Around 50 years ago the UK was moving from a surplus jobs economy, to a surplus labour economy. That means more people than jobs. What caused this was automation 3.0, computerization, and women coming into the work place in a more major way, as was their right. This caused a boom in productivity, meaning what you produced per hour for your employer increased dramatically, but… there were more jobs than people.
So, what happened next you won’t like, wages began to flat line, only increasing with inflation for the bottom 70% of the economy, they have continued like this for 4 decades across much of the western world. Yes the figure in the pay packet rises but I can take most salaries and inflation adjust for what was paid for a similar job in the 1970’s and show losses of income of thousands per person. In effect, we have 1970’s levels of income shared among the bottom 70% while costs of living are at 2017 levels, as they have consistently risen above inflation while wages have not for the majority, this is called a pay cut, you just cant see it directly.
The employers however, flush with cash from this productivity boom, began to pay themselves higher salaries for this “perceived genius” and the first billionaires began to emerge. At the same in 1979 the Tories come to power and cut taxes in half for corporations and the rich. Employers not knowing what to do with all this cash, began handing it over to new institutions to manage for them, they are called “hedge funds” What happened next was quite funny, if you have a warped sense of humour.
The hedge funds lend to banks, who then loaned money to workers, who took it with glee as their incomes were no longer rising but consumerism and life standards needed to boom for capitalism to grow into this new model, known by many names, “trickle down” or “Neoliberal” or “supply side” or my personal favourite “nuts”, so instead of rising wages, we got massive amounts of credit, second only to America. In effect, our employers, loaned us the wage gains we should have gotten from the productivity boom, to be repaid, IN FULL, with interest via the financial system. This economic hustle worked great all across the globe, until 2008 when we simply couldn’t increase year on year our debt pile as we had done prior, due to exported jobs and flat wages for those that remained / new jobs created.
You see, at the same time as employers got all this new cash upon their already wealthy behinds in the 1980’s they had already been pursuing another grand idea from a decade earlier that started as a drip and became a flood. The idea? simple, go abroad, pay them less, sell the crap to those with more money at home.
This is what I like to call, capitalism strangling itself to death as eventually those at home can’t continue doing this due to exported well paying jobs being replaced by paper pushing and service jobs that have worse conditions and stagnant pay. 2008 was not a “financial crisis” the financial crisis was a symptom of a cause, not the cause itself.
I am telling you all this to point something out to you. Inside the EU, outside the EU. Inside TTIP, outside TTIP. Scotland in the UK / out the UK, and many other examples, It makes little difference to the bottom 70%, who have been, are, and will continue to sink, regardless because the economic rules don’t change, only how you administer them.
Only 1 party is promising to address this damaging 40 year long assault, on the pockets of workers. Only 1 party has a plan to deal with the expected 5 million additional unemployed/under employed over the next 20 years due to Automation 2.0 now beginning, and it doesn’t t involve Zero hours contracts. And all they ask from the rich, is a little bit back, compared to the massive boom they were granted due to a capitalism gone mad, in order to address the damage that this has caused to society itself. That party is Labour.
Not Tory lite NewLabour, traditional, for the many, not the few, Labour. Their manifesto isn’t a revolution it’s a framework for a fairer kinder society, it doesn’t send us to a “socialist” economy, it is capitalist Keynesian economics, tried and tested, and the countries that use this model today have done so since the second world war and most are richer than us per person and ALL of them are happier than us. (economists measure happiness too, a revealing read)
Taxes: Who will pay more?
In the UK 63% earn LESS than the UK national average of £28,000, a figure that is roughly the same as it was in 1980 once you account for inflation. 90% earn less than £47,000, which proves Labours tax plans will only touch the top 5%. How much extra do they want?
- On income over £80,000 will pay an additional £7 per week
- On income over £123,000 will pay an additional £44 a week
- On income over £500,000 £444 extra tax a week
I am showing you all this, so you understand, you have no reason to fear what we once accomplished as a nation, only to be thrown off course by 2 oil shocks and conservatives seizing on the chaos caused by inflation from the oil shocks to privatize a mostly productive economy, who then made it as cheap as possible for the top 5% to send the jobs abroad or in some cases bring cheap labour here, (so don’t blame migrants, most are as economically screwed as we are, they wouldn’t come otherwise) in return for stagnant wages and most of the country pushing paper in service to those companies who sent jobs abroad.
Vote for another party if it will keep the Tories out of your area, but if you vote for conservatives, you do so with the understanding that it’s a vote to continue the degradation of the economic lives of the majority as they have no new thinking to bring to the table, because they are the privileged few and this system works just fine for them.
A vote for Tories is a vote to continue the cutting of education, the finalizing of NHS privatization, and a vote of confidence for the assault on workers by the richest, against the now poor majority, 17 million of whom don’t have £100 in the bank.
The current generation of workers, my generation, have been so economically devastated that we are now depleting the wealth of the previous generation at £6.5 BILLION a year to help us. That can only go so far, and come a recession is a recipe for disaster. Remember, capitalism is an unstable system. We have had 2 crashes and 6 recessions in 75 years. Not even God can stop them. But Keynesian capitalist economics deals with them far more effectively. Whoever wins will inevitably blame Brexit for the next, but it’s not the cause, just a contributory factor.
While the majority stagnates and struggles, we know, most of the growth of income and wealth is only in top 10%, who every recession, buy assets on the cheap and ride higher as we all work for their recovery, on top of all the other benefits mentioned above.
As for corporations, if anyone tells you they can’t cope with a tax rise from 17% to just 26%(nearer the global average), I would show them this. If they say small business will go under, I remind you all, Labour have promised to re introduce the lower, small business tax rate. No longer will our nations shop keepers be fighting against giants, while those giants pay little taxes while small and medium pay the lions share, as they currently do.
These are the governments own statistics, the IFS expects it to be 5.2 million by 2020:
If you are wondering why you’ve not seen all this on the news, or papers, that’s because 70% of the papers are owned by 3 conservative billionaires, the rest by a mix of pension funds and over seas investors. The entirety of BBC News since 2013 has been ran by James Harding, former editor under Murdoch and George Osborne’s best friend. BBC Question time itself, has been owned by an American Venture Capitalist firm called Virtruvian Partners LLC since 2013. The Metro, a paper that dumps lies into the heads of the working classes for free via buses and cafe’s daily, is owned by the daily mail. Our local telegraph? Trinity Mirror Group, London. This is why the local telegraph didn’t print this web address in their school cuts article, you should check it out if you are a parent: http://www.schoolcuts.org.uk
These are examples of the entrenchment of those above us, they control what you know, and thus would never show you any of the above in it’s full detail. Labour is trying to fight that, for you and your kids. Help us. If you don’t, they will use EVERY means necessary, to stop workers re-balancing the economy in the favor of everyone instead of the few, and workers conditions will continue to deteriorate regardless of kind words from your television. Remember, first it was a triple lock pension, now Tories promise a double lock pension, next recession dear pensioners, expect a bike lock while looking for work.