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Trashing distasteful parts of history puts us at risk of repeating the same mistakes in the future, which only the same level of hypocrisy would allow us to then deny

January 12, 2018 Leave a comment

download (14)The debate over Virgin removing copies of the Daily Mail from sale on its Trains in the past week highlighted the worrying trend for people to attempt to remove anything from their sphere of influence which they find in some way unpalatable – doing so without any level of regard for the real cost or consequences of doing so.

Whilst this vogue appears new to many, it has been within our awareness for a good period of time. It hinges on blame culture and the overindulgence of the personal slight. It takes the self-righteous influence of the myopic ever nearer the creation and manifestation of a very twisted and unrealistic worldview.

One of the reasons why it is so unrealistic is because it is built upon the foundation of idealism; that of denying that which cannot be denied.

Even in politics now, we have reached a point where apparently well-educated people with significant responsibility placed upon them by many others, believe and apply the fallacious principle that “if I say it is so, then it will actually be so”.

An eye on the future is however one thing, but looking back turns the same coin on to its other side.

History is planned, created and experienced in the present moment by us all. Yet it is an infinite chain of perspectives or opinions, based upon what are almost always a very small number of facts – some of which even the very people who were present and involved may not themselves have actually known.

That we live in a world where opinion has a level of power which just tolerates the occasional fact should really be far more alarming to us all that it really has become.

That individuals have the power to blight the lives of others, simply because they hold a conflicting view, should be something that concerns everyone.

That others are now trying to rewrite history and remove our heritage is a risk and threat to the future of us all and once completed may never be undone.

Culturally, we indulge the notion that only bad news sells, in almost everything we do – almost to the point where is becomes only the bad news about anything itself that we remember, overlooking many more good-news-stories that are available to us as we do.

The most dangerous of steps now being taken – usually by people who believe that they have been in some way slighted by the actions of people that not one of us has or will ever know – is to apply this approach to history, focusing only upon the bad parts of his story, so that the good which may have come will automatically be overlooked and quietly denied.

The politically correct form of censorship manifesting itself through the attempted removal of historic names from buildings and even trusts, like those of Rhodes in Oxford and Colston in Bristol may look like the delivery of justice to the shallow depths of the egocentric. But in terms of what this action overlooks, it is to all of us as a culture and society – in no way any such thing.

Nobody can realistically refute the pain and suffering that colonialism and slavery visited upon many millions of innocent and powerless people over tens and hundreds of years.

Yet the industry and commerce that both were part of also brought prosperity, wealth and yes – learning to all corners of the globe.

It supercharged the path towards a more enlightened and civilised way of being which itself allows the same individuals the freedom and platform to influence the world around them – for better or worse today.

There is no escaping the dark parts of this Country’s historic chapters. But there are also many beneficial lessons to learn by looking them in the eye – not least of all for the purpose of ensuring that we have enough awareness of what can happen when the conditions for oppression and exploitation are right.

The irony of the drive to trash these parts of history, is that they are being repeated all around us in many ways, albeit wrapped differently today. They may not look the same, but they have very much the same effect emotionally on the oppressed within the quiet of their own minds.

Indeed it is a great shame that the energy and passion focused on the drive for political correctness is not itself redirected to help others who are alive and need real help – but in ways that this same lack of human awareness on the part of social justice warriors leaves them unable or unwittingly unable to define.

People are increasingly being enslaved and oppressed by the world around them, financially, by rights, quixotic ideas and by the bureaucratic systems that political correctness is slowly ratcheting around all of us, like a slow pull on a closing cable-tie.

To try to destroy the lessons of history, whilst overlooking live-time oppression is one of the most hideous forms of hypocrisy in action today.

Focusing on events to learn lessons and use them to help others going forward would be much better for us all than playing a disingenuous game of out of sight, out of mind.

image thanks to unknown

Idealism has given young people unattainable expectations within a land of the financially enslaved, where unhappiness is enhanced at a push-button rate

January 11, 2018 Leave a comment

download (13)Verbal head scratching has for many months dominated the media, as our influencers and opinion writers try to come to terms with what really happened for the Labour Party at last Summers General Election.

Of course, the perplexity doesn’t stop there. Somewhere in an office near the Palace of Westminster, a Conservative Party which looks rudderless and without any sincere intention, is desperate to emulate a link with our Nation’s young people; one which appeareances tell them only Jeremy Corbyn could invent.

That people of any age can be intoxicated by drink, drugs, or by the romanticism of the political ideal that everybody should be treated in a same-size-fits-all category is nothing new. Joining a group to further the interests of ourselves is after all hardly something new. Yet the motivation for doing so for each of us will never be exactly the same.

Sadly, politics in the UK has been without real substance for a long time. Policy is made reactively in a very focused way. It does little more than address the effects of issues, rather than going any great distance towards tackling the causes themselves.

Against such a backdrop as this, it has become very easy for politicians to make hollow promises. Corbyn’s soon rescinded promise over scrapping tuition fees for university students was clearly one such gesture. But a population which has been conditioned to believe that we can trust in our leaders and political parties without question simply doesn’t look beyond the words as they are heard – whether it considers itself to be left, right, leave or remain.

Labour’s vote winning stunt is pertinent not because it is political or because it appears to have worked as it was intended. It is illustrative of the complexity of this real problem because it highlights the presence of many questions that politicians should not only be asking – but also answering. Questions about why the various experiences of the politically disenfranchised are now being so well exemplified by the experience of the young.

Higher Education is just one area affecting real lives which has seen its value overturned, whilst giving the surface deep appearance and sense of even greater opportunity being presented to all.

Young people are being actively encouraged to commit themselves to lifetime borrowing to take a wide range of degrees which themselves are increasingly considered by industry to be worthless in terms of the skills that they teach. The students themselves understandably believing that they will automatically find themselves within a glittering career just as soon as they leave full time education.

The commercialisation of the higher education sector has added to the problem considerably. The priority of what at one time would have been arguably some of the best academic tuition available in the world, having now been shifted from the quality of teaching itself, to the accumulation of profit and nothing else. The recent cases of outrageous pay for university leaders is all you will need to read.

Whichever way you look at it, the emphasis is about money. And the experience of education is just where this process begins.

Having been sold the faulty bill of goods which a degree education for many has now become, the opportunities to secure work which will enable young people to quickly move on without a need to go home to their parents is increasingly hard to find.

Profiteering in the housing market has made entry level purchases and tenancies impossible for many. Property prices being exponentially inflated beyond even their realistic ball-park level, with values now being pitched at the ground in the next town and probably way beyond.

The work which is available to many graduates offers career prospects way below what a degree level entrant had been taught to expect when they made their academic choice.

With the attainment of all degrees being deliberately sold to everyone as an academic elixir which will make a graduate in some way better than anyone else, it is little wonder that many see some occupations as simply being beneath them, not only as a job title itself, but in terms of the tasks they will now accept even as they are being on-the-job trained.

Effortless attainment has become the expectation of the next generation. It is backed up by an instant response culture of a click-button-world. And with media saturation reaching the point where we can perceive almost anyone as being accessible to us on our phones or in our own front room, it is little wonder that every young person who is prepared to do what they are told, expects that life will instantly reward them by appointing them as a rock star, MP or CEO.

The young and therefore all of us have been failed by the creation and propogation of a land of unattainable expectation. A fallacious future based on hollow promises, so that politicians can bathe in the glory of transient electoral and policy wins which add up to little more than pyrrhic victories.

For an entire population, a value set which reflects a practical, obtainable and satisfactory level of reality has now been denied. Aspiration has now been usurped by the need for glory and this is a prize you can only win if you make it big financially too.

Generations of politicians are responsible for this perfect storm. They represent all parties, and even those who are today continuing to perpetuate this evolution of chaos, would not recognise a pathway which for many others is already beginning to feel like doom.

The impractical idealism and romanticism of the left has created the illusion for some that a utopia exists where each of us can be equal whilst becoming a king or queen over all. This has been no less devastating than the unleashing of unregulated markets under the increasingly influential neoliberalism of the right, which demonstrates that it really is only those who have unfettred access to money who have any perceived form of real power. Very few of us believe in or have faith in the ability for us all to experience something beneficial in-between.

If government continues to do nothing to resolve this problem, we remain on target to become a Nation lost.

Yet resolution is not just as simple as the exchange of a few simple ideas.

After all, any person who would just like to live a simple lifestyle, without money, is in a position where they simply cannot.

 

image thanks to unknown

The ‘rent’ economy is enslaving us all, creating money for nothing for the ‘asset rich’ and progressively extending poverty to all the ‘paying poor’

December 28, 2017 Leave a comment

download (10)Every day we are hearing and reading stories about wage stagnation, price escalation, homelessness of the kind where young people can’t afford their own place, spiralling personal debt and a whole range of stories which relate to the cost of living. Stories that are repeatedly telling us that maintaining a basic life in the UK is very quickly becoming a luxury that many of us simply cannot or will not be able to afford.

Alone, each tale told can and often is attributed to a range of causes which are nonetheless real, but also overlook a common theme throughout all of these issues. The commonality between them all is the economic concept of ‘rent’. The impact of third parties taking ownership of all or part of a product, the delivery of a service, or some other form of purchase at some point in the process from where it originated to where we use or in consume it in some way.

Rent is of course a term we use in daily life to describe paying to use something which belongs to someone else. The most common usage is that of renting of a house, where instead of there being a simple relationship between an owner occupier and their house or property, the occupant rents the property from the owner, essentially increasing a basic two part relationship into three.

In just this example alone, we can take it one stage further and add a bank or mortgage owner of a buy-to-let property (1) which is rented by the occupant (2) from the owner (3) who borrows the money and pays interest to the bank (4), which may itself have borrowed that money from another bank (5).

Whilst we would normally think of just the transaction between the occupier and the property owner as being ‘rent’, in economic terms, any additional party taking something from an overall transaction or supply chain between its origin and use who isn’t essential to the core process is receiving rent of some kind. They in turn may split their role between themselves and others, each adding their own profit as they do every time it happens. Ultimately each additional participant in the chain raises the price of whatever we as users or consumers will be expected to pay.

Sometimes, a number of stages appear necessary. For instance the food we eat might have to be grown by a farmer (1), which is bought by a manufacturer (2) who pays a haulier (3) to transport it to where they will process it. The manufacturer then sells the prepared food to a wholesaler(4) and pays another haulier (5) to deliver it to their warehouse. The wholesaler then sells it to a supermarket (6) and pays another haulier (7) to take it to their distribution centre. The supermarket then pays another haulier (8) to deliver the product to its store, where it sells the finished product to us (9). Do believe me when I say that the chains are usually much more convoluted than that!

Of course, we are all guilty of falling into the trap of forgetting how complex the process is which brings us our food and most of the items that we consume or the services we buy, because for us the process seems to be so very easy. But look closer and we will soon see that even a supply chain of this size may involve unnecessary parts and people taking ‘rent’.

So what does this all this talk of rent really have to do with the cost of living?

The real problem with the provision of goods and services is that the UK operates within what is called a ‘free market’ environment, which it has been since at least the time of the Thatcher Government (1979-90). Within this free market, reduced levels of regulation and influence from the government – who we expect to guard and protect our best interests – provides the opportunity for additional 3rd parties and in fact many more of them to involve or add themselves to the chain of many of our daily transactions. By doing so, they can make significant profits from what in some cases will be as simple for them as a click to buy and another to sell.

Whether it is food, clothing, fuel and oil, transport, communications, borrowing money, or just about anything we can imagine that we can buy, there are now speculators buying and selling products and services, sub contracting responsibilities to others, all of them taking additional profit by taking ‘rent’ which there is no practical reason for anyone needing to pay. They indirectly inflate the prices we pay for the end product, increasingly making those things which should really be quite affordable, simply too expensive for us to buy.

These speculators do this because they can. There are no real rules to stop them, and they are making as much money as they can without any consideration for the impact of their actions on the end users – that’s us. And they have little concern that they will have to stop doing so, because the banks simply continue to lend money to the people who have been forced by this process to borrow – if indeed possible – in order to survive.

Think about what really caused the 2007-08 Financial Crisis, which was the sale, resale and resale again of financial products or debts which became so complex, even the financiers themselves didn’t really know what they were buying and selling on.

Bankers were making massive amounts of money – all because nobody was monitoring exactly what they were doing, whilst their own ‘success’ blinded them to how value was being created by lending to people at one end of this elaborate chain who simply didn’t have the ability to pay back what they had been lent.

The Bankers didn’t care before it happened and they don’t care now. They are still not regulated in the way that they should be, and were actually saved from going under in 2008 by the Labour Government at the time by giving them Billions of Pounds of money in bailouts and rescue funds that the Government itself borrowed, and which we are still paying for through the accumulation of public debt.

These are people, banks and companies who are quite literally making money for nothing, and its all at our expense.

The ‘rent’ economy has been evolving as the reality in which we live for many years now. But it is only as more and more products and services have come under the control of those with the money and unrestricted influence to speculate, whether it has been through privatisation, the development of near monopolies or money simply being placed within unscrupulous hands, that the real impact of ‘farming everything for profit’ has began to become fully clear.

 

 

 

Keeping it real has become the key ingredient of electoral success and Capitalism vs Socialism is a battle which no longer has meaning

Capitalism vs Socialism 2

If you keep an eye on enough of the different news and commentary outlets, it will have been easy to pick up that one of the latest themes amongst those supporting the Government and Conservative Party, is to talk up the righteousness and benefits of Capitalism in comparison to the Socialist agenda of the Labour Party and the wider ‘progressive’ left, which we can be assured will be making the same arguments somewhere completely in reverse.

The backdrop of a General Election Result which has wrecked the confidence of a Party that thought it was safely assured of probably more than a decade in power has indeed set many injured cats amongst the electoral pigeons. On the other hand, it has also elevated the levels of chutzpah employed across the Left to a level which simply defies the true dynamic of their electoral return, in a race decided by factors which sit way beyond the control or influence of either of the political ideologies that either the Tories or Labour would like us to believe they pin their hats on.

What people were quietly thinking to themselves as they entered the Polling Booths across the UK on the 8th of June will long be debated. But you can rest assured that for most it will not have been either the manifestation of Marxist policies or the benefits from implementing the works of Hayek or Freidman.

No. The ideas that will have meant most to those voters who really made the difference to the fortunes of Theresa May and Jeremy Corbyn will have been far more aligned with imagining the difference that one Party in power vs the other could make in Pounds and Pence to them on an individual level, rather than upon some high powered economic idea which all of the political parties seem destined to believe will get us all ‘there’.

Whilst it would be a lot less painful to be able to confine these ‘isms’ to being no more than the ideological myths that they perhaps should be – being the ideas and musings of a few ‘great thinkers’ that they actually are, the horrid reality is that the Twentieth Century saw misguided politicians and activists implement nearly all, with benefits to all but the relative few being very hard to find, whether those concerned have become substantially wealthy or alternatively live the life of a despot or their ‘chosen few’ within non-democratic regimes like North Korea as a result.

In itself, the travesty of one set of politicians romanticising over socialism when it has been tried, tested and demonstrated to be the flawed ideal for any wider population that it actually is, whilst another set continue to believe that markets ruled by money will consciously cater for every not-for-profit need of the wider population upon which its rapidly growing financial wealth is almost certainly now farmed, is simply too significant an injustice to put into words.

Yet the bright young things, the think tanks and the party leaderships of all political persuasions remain fixated on the idea that clever, confusing and complicated ideas can always win, never accounting for the reality that ideas are themselves developed on perspectives, which when created looking upon a destination from the benefit of distance are never the same once we have completed the journey to get there.

Socialism, Capitalism and the forms in which they are delivered are all based upon subjective but nonetheless real truths. Truths which are themselves prerequisite in order for any follower or exponent to believe in or more likely identify with in terms of their own life experience, in order for an ‘ism’ to become a ‘movement’ of any kind.

But these specific or myopic truths are far from all encompassing. They do not make allowance for the nuances of change and they certainly do not make account for the rules of (mis)interpretation, which for the roll out of any idea through the process of transformation to their practical form or policy, present a very real and all too often realised form of serious danger.

In uncertain times like those in which we live, the smallest self-serving truth shared between many through the process of group-think can be enough to eclipse the many others which should for us all have far more meaning, and it is here that any ideological fights between right, left and anywhere in-between should really be seen in their true perspective as the journey and outcome that they ultimately are and guarantee to be.

Socialism can only succeed by forcing the masses to behave as if they are all the same, whilst Capitalism relies on allowing the few to believe that they are fundamentally different.

Objectively, neither philosophy or pathway is genuinely truthful and both are for those ‘selling’ them as self-serving in purpose as the other.

The void created by the long absence of original thought in British politics over a number of decades and through Governments constituted by politicians of all sides does not need to be filled by ideas drawn from text books and the bookshelves of old.

Yes, history needs to be fully regarded for ALL of the lessons that it can teach us, and amongst this, the thoughts of the economic ‘giants’ should be gleaned for the value from each and every perspective, whilst we maintain a healthy regard for the fact that in the case of all these widely lauded ideas, individual perspective is exactly what they are.

What all of the political parties can no longer escape – should they genuinely wish to ensure their long-term-electability, is that the war of ideologies has long since been lost. The electorate may indulge ideas when to them there is no possibility of personal cost, but will always look for the policies which are going to make a positive impact upon their own experience of life in the ‘right now’.

Whether it was the European Referendum or the General Election in June of this year, ‘keeping it real’ – whether policy is perceived to be good or bad – has become the key ingredient of contemporary electoral success.

Capitalism can only work for all if it becomes responsible and reflective of consequence, whilst the Socialist ideas which are genuinely on the side of right can only do real good for all if there is an acceptance that idealism has to be kept in practical check and be considerate with the ideas, hopes and fears of each and every individual too.

 

 

 

 

The Living Wage is as much Labours’ child as it is the Conservatives’ and their MP’s Band Aid parody highlights the political culture of creating policies which deny the realities of consequence

December 21, 2016 Leave a comment

labour-band-aid

The principle of the Living Wage or rather the concept that everyone should at least earn enough to provide them with a basic standard of living is a good one for many reasons. But in isolation, the coercive nature of such a policy being unleashed upon business and industry was always going to be seriously flawed.

The indirect impact and ripple-effect of this Policy – which have led to consequences outside of political control, were as poorly considered when it was launched and implemented by former Chancellor George Osborne as it was when it was first mooted by Labour Leader Ed Milliband.

That big business has adopted a rationalisation of employee terms and conditions as a method of offsetting the additional expenditure which the Government has effectively imposed upon them should not come as any surprise.

Profit is for many organisations a god after all, and whilst to many the implementation of the Living Wage appears to be a highly positive step in making life better for the lowest paid, it also overlooks many facets of its knock-on effects or indirect impact upon those it was not designed to benefit. Above all, it fails to consider the responses and choices that employers of all kinds would make as a result.

Whilst the behaviour of successive Governments and the City would suggest otherwise, for the rest of us, money doesn’t simply grow on trees. The impact of paying employees more money has many effects besides using up a company profit margin and whilst it may be a principled idea to expect business to warmly welcome such an apparently altruistic move, it is also extremely naive. Would these very same companies not already be paying everything to staff that these politicians expect them to, if the owners or managers making the decisions already believed the idea or principle was right?

Perhaps most concerning when considered in this context, should be the fact that in April 2017, the Living wage will rise by another 30p to £7.50 an hour, and that a further rise will follow the next year. The consequential impact of the Living Wage will become continue to become worse as it becomes more widespread, and the economies and efficiencies that have been made to service the inflation-busting rise so far, will simply become unsustainable as the costs escalate beyond where they are today.

There are currently too many factors outside of the control of government, such as the escalating prices charged for services and goods that are essential to a basic standard of living, for isolated meddling to have a genuinely sustainable positive impact. And that is without even factoring in whether the many marketplaces in which different organisations operate can sustain low margin companies paying their staff more.

As things stand, MP’s and activists can bitch about the injustices of the Living Wage all they like, as the story they are telling will in some ways certainly ring true. But until they accept that they must all think differently about how they address the impact of all that they do, it will continue to be the very same people they are telling us they are going to help who will be the ones who will ultimately suffer as a result.

 

image thanks to http://www.totalpolitics.com

Festive Strikes defy sense and reason, but we should all be mindful of the unspoken issues behind them which serve as a warning for us all

December 14, 2016 1 comment

download-1We should all recognise the value that Unions historically had in influencing positive change in the workplace. But times change and the question over whether they have continued to provide a genuine voice for poor treatment or have simply become little more than an archaic nuisance to business and government alike will certainly lend legitimacy to the arguments against Union power by the more neoliberal within them.

The effect and reach of equalities legislation has permeated through every part of society and our lives to a point which has arguably gone well beyond its point of good, and to a level where its influence has become fundamentally regressive.

From this standpoint alone, you could make a reasoned and valuable argument against any organisation or movement which seeks to progress the work of the rights lobby further, and beyond that see the power of Union Leaders as the menacing anti-business device that the untimely raft of strikes by Southern Rail, Post Office and Argos Staff this December would ultimately suggest that they are.

It is certainly true that in relative terms, there is no difference between bankers creating profit-focused financial devices that speculate the cost of products or services, indirectly raising the cost of living for us all, and a self-serving union rep who places a stranglehold strike on an employer simply to get a pay rise or a perceived improvement in terms for their fellow staff.

But should we really dismiss any kind of industrial action by narrowing cases down and concluding that personal gain is simply what its all about?

On the face of it, it really doesn’t matter if a debate is framed as a matter of health and safety or fairness over holiday conditions and pay. Gain does play a significant part, but so does the fear of loss, and both these two debates are representative of much deeper seated root causes of problems at work around us which are building up as a significant time bomb, whilst they continue to go unchecked.

Union leaders do not help themselves by behaving as if business exists only to create and facilitate jobs. It doesn’t and never has. Yet the drive to pay less for the same work to be done or to do away with specific jobs entirely in order to cut costs when profits are maintained and prices are soaring, rather gives the lie to where a public service provider’s priorities focus. The more concerning element of the Southern Rail strike debate however, is what the introduction of technology which immediately halves the staffing requirement for managing just one train alone will mean or may have already meant when considered outside of this specific context and becomes representative of the impact its is having in every area of business and employment.

Immigration is blamed by many for the loss, or rather diversion of jobs to foreign and particularly Eastern European workers, with the caricature of the Bombay-based call centre worker being used to account for the export of many others. The inference being that jobs are in some way set in stone and that it is just the terms under which they are awarded to an employee or contractor that changes.

What it doesn’t account for is the genuine loss of jobs due to technological advances having literally removed the need for a particular role to exist.

We would perhaps like to think that his march of technology is researched, developed and delivered purely on the basis of improving many different aspects of production and service delivery. That is certainly how the benefits are sold.

What is rarely mentioned – the elephant in the room, is that jobs have been disappearing for a very long time as a result of this pathway of progress, whether it has been within manufacturing, agriculture, public transport or any one of a multitude of industries and skilled areas where services or production have been highly labour intensive.

Up until now, the change has not been noticed. Workers have retrained and like the once redundant miners who moved into call centres in the North, many manual jobs have been replaced by others within newly defined service industries which are focused on producing an experience, rather than some kind of definable or tangible product we can buy.

It sounds good, and little is said when jobs are there for those with apparently transferable skills when a factory closes. But what happens when the new jobs do themselves become the target of efficiencies and the technological breakthroughs which leave a machine doing the job of many different people over its amortised lifetime at a fraction of the cost?

This whole idea will to some sound far-fetched. But the change is very real and is now becoming present as a very clear danger to a broad spectrum of jobs.

Take for instance Amazon Go, which is set to be launched in the United States early in 2017. This forward looking and innovative Company is not standing still when it comes to the platforms from which it seeks to acquire new market share. Within weeks, it will move into location-based grocery stores which do not require shoppers to use tills or a check-out system when they visit. You simply use the smartphone based Amazon Go App which does the work for you and the system even knows and calculates the change when you put an item back.

We need only consider the number of tills at a standard sized Asda, Morrisons, Tesco or Sainsburys near to where we live and the inevitable irritation that queuing to pay causes us all to appreciate just how quickly this new way of shopping could explode, taking many jobs from any one or all of these stores as the concept is rolled out and goes viral throughout the retail industry – which it inevitably will.

In business terms, this development by Amazon can only be commended as the groundbreaking step that it actually is. But the dark realities behind this very appealing change for our instore shopping habits is that its true benefit will be profit to shareholders. It will be masked by a transient benefit to us all as shoppers, but it will ultimately lead to the loss of jobs which may simply never be replaced or made available elsewhere.

The very difficult message that needs to be swallowed, fully considered and then acted upon by policy makers as a whole is that the story which underlies comparatively simple squabbles with the Unions over pay and conditions do indeed relate to the range of still unanswered questions over the continuing cost of living crisis, but are in fact just the tip of a very large iceberg indeed.

In recent weeks, highly respected British Scientist Professor Stephen Hawking and US Tesla CEO Elon Musk have both alluded to these issues with Mr Musk going as far as to suggest that government may have to consider providing a basic income. He is absolutely right.

If industry continues to deliver efficiencies via technology in the way it that it is already doing so, whilst religiously maintaining or increasing margins and raising prices despite the savings being made, profit for the few and the effect it has on the many will unquestionably result in the Government paying the bill to finance a significant workforce which has become unemployable and left without choice.

Less people paying tax will exacerbate the difficulties that the Government faces and families in genuine need will not be sustained on a level of income which doesn’t meet the increase in the cost to maintain a basic standard of living which is being dictated by and large, by the very companies who will benefit from the implementation of the technology that enables them to shed so many staff.

The alternative will be that Government must take the concept of responsible capitalism seriously and consider the steps that may need to be taken to prevent businesses growing to a point where their market share enables them to become a monopolistic menace to the very society that buys its goods or services.

In the mean time, the methods, approach and lack of consideration for the impact of their actions upon people who are struggling in the very same ways as union members are themselves in the run up to Christmas may well make any feelings of support for the Strikes feel somewhat unpalatable. But we may all nonetheless do well to appreciate the value in the story which is not being spoken by the Unions, the media and Government when for far from obvious reasons, the voice of militancy leads an employee to act.

 

image from source unknown

 

Labour’s coercive plan to fix the living wage is as real world as the Tories apparent belief that unemployment and poverty are the same thing….

March 16, 2015 1 comment

SNN0713XA---280_1419151aAt first glance, Ed Milliband’s promise to roll out a requirement for employers to pay the living wage sounds like it recognises the biggest issue facing so many families across the UK.

It could work. Or rather it could be seen to work temporarily, and that’s the most cynical part about it.

If our economy was on track, managed by politicians who considered the real impact of policy and performed as it could and arguably should, a working adult would be able to financially support them self on the most basic wage, without any need for support from the Government, or any third party organisation such as a food bank.

The political tomfoolery or short term opportunism which Labour are investing in their manifesto plans as part of their General Election Campaign doesn’t however recognise or consider the role that such policies play within the ecosystem that business and the economy around it actually is.

Like the Conservatives flawed idea that poverty evaporates the moment the unemployed are offered a job, fixing a basic wage for all gives absolutely no consideration for all the other factors that come in to play, nor the consequences which will almost immediately follow.

Whilst the suggestion of an apparent £1.50 an hour raise will give the lowest paid the feel-good factor that might win their vote, Labour’s sound-bite gives no thought for the fact that small businesses might have to reduce their workforce, just to pay the higher wages for fewer staff that the law would require.

This fag-packet plan gives no thought to the likelihood that the productivity of small companies could inevitably reduce because there would be less staff hours available to do the same amount of work.

It doesn’t consider the reality that profit margins may be so low for some small businesses that being required to pay the living wage to employees might actually force them out of business because they cant compete with bigger companies which have the economies of scale and significantly wider profit margins to help them out.

For big business, that might be seen as good news. Companies that thrive on the use of low-paid, low skilled workforces such as the supermarkets and branded coffee bar chains do after all have the ability to raise prices almost at will. They would certainly then be able to cover the rises that the living wage would require, as they inadvertently make the cost of living more expensive for the lowest paid workers, preserving the profitability of their business models.

Put in these terms, we can soon appreciate that the living wage as it is being presented by politicians is in fact just another one of those red herrings that they keep on spinning. It doesn’t accurately reflect what it costs to live. It certainly doesn’t reflect the manner in which the government continues to subsidise large company profits by providing the many welfare incentives for those on the lowest pay, such as tax credits and housing benefit – even if it keeps some small businesses afloat by doing so.

Many people would simply not be self-sufficient on Labour’s Living Wage, any more than they are on the Minimum now. Its coercive implementation would just begin a spiral of inflationary rises that would once again hurt the members of our society who need a basic level of income which genuinely reflects the cost of living the most.

In real terms, we would in effect very quickly be back exactly where we are again right now, with some politician promising yet another quick fix which isn’t actually going to ever solve the problem, just keep the wheels turning by moving the goalposts and them themselves in government (or knocking on the door of it) until another day.

We need the political establishment to begin taking the longer view. To consider the concept of cause and effect. To appreciate, recognise and work with the reality that all decisions they make, and that all policies they implement will have consequences that when made in isolation, often have the result of hurting the wrong people whilst benefiting those don’t actually need any kind of financial assistance at all.

Decision makers must become conscious of the fact that money may be the common thread which runs through almost all of the problems that we have in the UK, whilst money is not the problem in itself.

Westminster has to accept that fire hosing money into problems – and in this case, not even the government’s money – is not a solution. Unhinged spending only extends the magnitude of the problems that already exist, whilst increasing a mountain of debt that for any organisation other than the government would have long since have resulted in bankruptcy.

Whether it is wages, Welfare or the NHS, reform needs to take place on a wholesale basis and comprehensive scale; throughout and across the system of government and everything it touches or ultimately has responsibility for.

Real lives are not completely populated by one-off black and white decisions and even when they are, the ripple effect of consequences will go in all directions and often end up hitting completely different – and usually innocent things.

Above all, government must lead on the reassertion of ethical practices throughout business and government itself. This needs to travel from the top to the bottom of society and remove any suggestion of there being one rule for us; for you another.

The best place to begin would be for the Conservatives to stop behaving as if telling people they are no longer poor will make them believe otherwise when everything they are experiencing says not, and for Labour to stop pretending that barking an order will make a free-thinking business world sing happily without consequence to its nanny-state tune.

The real living wage – or point where the lowest paid can live self-sufficiently, can only come into being within an economic system which produces its own equilibrium.

Government must stop interfering where it shouldn’t, and do more where it should, preventing other forces from manipulating or skewing the balance which has already travelled so very far away from a point of being good.

Poverty, immigration, radicalisation, unemployment and many more serious issues which the UK is facing are all made worse and worse by the behaviour of short sighted and inconsiderate politicians. Its time that they all realised that life is not like a bedtime story book for those who live outside the Westminster bubble, and real life for real people doesn’t simply hinge on getting re-elected every five years.

image: http://www.thesun.co.uk

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