Archive

Posts Tagged ‘Poverty’

Labour’s Universal Basic Income is nothing but a temporary bridge across a black hole of a problem that none of the Parties understand or are prepared to deal with

November 10, 2019 Leave a comment

89447a1c-d5a9-4158-b167-d12c506c5774The headlines this morning make painful reading to anyone who can see the real costs of The Labour Party’s plans and what they will involve.

Actually, it’s not the suggested figure of £1.2 Trillion over five years spent on public services that the real problem.

It’s the reality that this child-in-a-sweet-shop-with-birthday-money approach to fixing public services involves nothing more original than throwing money at the problems with no investment for the future or genuine long-term returns involved.

All well and good you might say if your only priority is to get a government elected and indefinitely keep that power.

But for the millions of British People who are experiencing the arse end of all that’s wrong in this Country each and every day, any positive impact from Labour’s great giveaway will be short lived once the default causes of all these societal ills have quickly bubbled back up to the surface again through the pile of vaporising money that these cynical left-wing politicians tell us they have in store.

The hollow promise that comes with a Universal Basic Income is the suggestion that poverty can be addressed as simply as giving everyone the same amount of money each month before spending on everything that life demands of us begins.

It’s a nice idea. And for people caught in a poverty trap with little or nothing, the promise of a lump of no-strings-attached cash each month is an electoral vote winner that is likely to go far.

If only life were really that simple.

The biggest problem that people on or below the poverty line in this Country face is not what income they have. It’s keeping control of the cost of everything that is essential to live, get by and to enjoy a basic or acceptable standard of living or quality of life.

Identifying the amount of money, or the combination of a Universal Basic Income payment plus any benefits that might be payable that are involved right now, today, doesn’t address the issue of what they will cost thereafter. Nor does it address the issue of how the real cost of living got to where it is today.

The reason for this is one of the greatest cultural ills of business today.

It is the exploitation of every opportunity to make profit wherever and whenever possible. Not because that’s what makes businesses work and function. But simply becuase the circumstances exist where they choose to because they legally can.

Too many profit hungry business owners, managers, shareholders, agents, financiers and speculators are taking too much money out of a system where there would otherwise be plenty that was affordable for all. They interrupt and place themselves within supply chains, production chains and service chains without adding any value to the process themselves – and this process often happens more than once.

Gandhi once said that ‘Earth provides enough to satisfy every mans need, but not every mans greed’. Our politicians clearly don’t read and if they did, they certainly don’t listen.

Whilst an argument can be made that Labours Election Manifesto includes a plan to re-nationalise essential public industries such as power, water and rail, the reality that they have no plans to address the institutional problems that exist within the Public Sector mean that the profits currently being sucked out of these industries by private shareholders will simply be redistributed to other destinations of a self-serving kind, whilst the service itself and cost to users will progressively get even worse whilst costing us all even more.

Addressing the cost and regulating the freedom of the private interests that you can never realistically remove from all manufacturing and production, services and supply, to charge whatever they want for goods and services that are essential to providing a basic quality of life for us all, should therefore be the primary aim of any political party that really wants to improve life.

It should be a simple task for politicians who genuinely care and intend to lift the poorest in society out of the circumstances that are a vicious circle that condemn them to want, debt and an experience of life that nobody in the 21st Century UK should ever have.

Labour, the Liberal Democrats, the Conservatives – in fact none of the Political Parties we have on offer to us as Voters today, really have any idea nor understanding of how the monetary system works. Yet they are obsessed with monetary theory.

They don’t know how business operates. But they believe themselves qualified to regulate or deregulate at will.

They certainly have no appreciation of how technology is not only destroying and dehumanising relationships. But is also making the ability of the unscrupulous to exploit others and the vulnerable easier than it ever has been before.

The people or so-called politicians that we already have and that we are about to elect again in December are not fit to rule over us. They have no idea of what the problems facing this country really are and how they affect people of all demographics and backgrounds. They have no vision of how those problems can be addressed. And they certainly have no idea of what they really need to do to begin solving any of them.

Until we have politicians and leaders in this country who do see, understand and are prepared to do whatever it is that is necessary to deal with the issues that this Country faces, the fuckwits that we have in power will play around only with what they perceive to be the problems that others outside the Westminster bubble face, whilst what amounts to their tinkering makes everything everyone else is experiencing a whole lot worse.

 

Government should be ensuring that people can afford to live on a basic income, not make cheap headlines from a non enforceable wage

October 1, 2019 Leave a comment

Our MPs are so busy getting drunk on their own power and glory, they really have lost sense of reality with the policies that they continue to propose.

The problem is that without looking at the detail more deeply – as the people we have trusted to run this Country really should – the soundbites that they keep pumping out in isolation sound all so very good.

In quick succession, we have had the Liberal Democrats. the Labour Party and now the Conservatives throwing out policies from their Conference platforms that have been designed as nothing more than cheap tricks to buy voters off.

Promising the earth and then failing to deliver has very little cost for the unscrupulous politicians involved.

But policies like simply cancelling Brexit, reducing the working week for everyone to 32 hours and raising the ideal hourly rate for the Living Wage has a real impact that will not deliver the beneficial experience that these politicians are suggesting they can control.

Pretending that Brexit and the vote that led to it can simply be cancelled as if it never happened would be beyond stupid and would have very serious consequences for everyone – no matter what fairytales those obsessed with Remaining in the EU would like us to be told.

But what we earn and how we earn it not only has an everyday effect on how we live our lives, it is also all about what we can afford.

Politicians on all sides are completely out of touch with what it actually costs us to live. The reality is that even on a 40-hour-week paid at £10.50 per hour in 5 years time, thats only £420 per week or £21,840 per annum. It’s not enough today for a single adult without children to be self sufficient, let alone tread water or basically survive.

The cost of living in this Country is stupidly out of control.

The way that we measure the health and success of our economy should not be wage rates and rises, GDP or statistics in any other form. But whether the poorest amongst us can look after and completely fend for themselves on the basic minimum wage without going into debt, claiming benefits or having to look to charities to someway get involved.

The way that a more enlightened government or MPs who actually know and have respect for what they are doing would achieve this is to actually use the power and responsibility that they have been given to make changes the the framework that business and finance operates within. Not to tinker on the edges by applying sticking plasters that will have already lost their ability to heal anything by the time that they come into use.

Too many businesses, financiers and property owners are taking too much value out of every product and every service that is provided in this Country, without putting like-for-like benefits back in.

The system is complex and complicated and few of us really understands how finance, markets and supply chains work. But the benefit is all going one way right now and continuing to take the most from the people who can least afford it. All so the people at the top of the chain can keep adding to a cash pile they have no genuine need to use, whilst looking at the ease with which they can work the system and concluding that they can take even more.

Politicians should not only know, but be acting proactively to address this. Not to eliminate the financiers, business people and economists like Labour might like to do so. But to introduce a considered set of ethics and regulation in every aspect of business in this Country, so that end users are only ever paying whats fair for the basic products and services that are essential to live and survive. But above all, is no more than what they can actually afford.

Until we have politicians prepared to take the steps necessary to address the real cause of the cost of living problem, the way that economics work means that the people who are now having to go into debt, look to the government or charities just to get by and stay alive will continue to see life as something that they simply cannot afford.

 

 

Improving Social Mobility is about addressing the way decision makers think, not about academic education alone

October 8, 2018 1 comment

img_1532

The three key misunderstandings and fallacious barriers to Social Mobility are:

  • That Social Mobility issues only affect young people who are in career development years
  • That the only way to improve Social Mobilty is through ensuring that everyone achieves a ‘full’ academic education and that the attainment of degrees is key
  • That Social Mobility issues relate to the achievement, progress or outlook of the individual and nobody else

With one evolution of the Social Mobility Commission having resigned because of lack of Government support and another now appointed in the image of all the same Establishment ideas, the key issues underpinning lack of progress in tackling the barriers to Social Mobility are still being overlooked and this travesty is set to continue further still.

As is often the case when a cause is given a label, the Social Mobility problem is an issue which has become closely aligned with just one interpretation of its cause. This closes down debate and dialogue about the much wider range of issues which attribute to reducing opportunities. It also excludes consideration of a wider malaise and certainly overlooks the real impact on not only the individuals affected themselves, but also upon the wider community as a whole.

Yes, many young people are overlooked because of the start they had in life. The place in which they lived. The schools which they did and did not attend. The qualifications which they did or didn’t gain.

But the reality is that it is a very long list of factors which prevent any one person from progressing.

The interpretation of someones validity on the road to progress and passing these barriers is not simply restricted to that of employers, educators or any of the external gatekeepers of opportunity.

No. The perception of not being good enough to overcome any barrier to Social Mobility can be that of the individual all on their own.

The obstruction to unhindered Social Mobility, is the many prejudices which are not and cannot be managed by regulation or by the methods of review and reform which have become the cultural norm in this Country.

In a society which has learned to make effect synonymous with cause, we overlook the real causes of societal problems and as such have no way to address the consequential effects.

The social justice warriors, the politically correct, the rights lobby and liberal left all congratulate themselves on the strangle hold of regulation which decades of manipulation and social engineering have helped them impose.

Yet the rules which govern Equality of Opportunity in their purest sense have actually made prejudices easier to employ.

Only now, beyond the scope of the processes which assure us that prejudices have been all but removed, they are less likely to be evidenced and hide in plain sight.

Yes, we have regulation against gender and sex discrimination. Race discrimination. Disabilities discrimination, Religion, Age and sexual orientation too.

But in creating these frameworks or safety notes, the idealistic engineers of this ill-considered social plan have provided the perfect opportunity for people to surrender ethical responsibility to being seen to adhere to the set of rules which now exist. They have been given a set of pillars that once worshipped, allow them to do whatever they want to by behaving in ways which legitimately go around these rules or sit somewhere in the spaces in between.

We now not only have a situation where decision makers can quietly be racist, sexist, or are allowed to quietly indulge any other prejudice we might not collectively like. They can continue to do so unimpeded.

The consequences of this ‘big vision’ engineering project create many other problems too. Problems which include disadvantaging the already disadvantaged and building barriers to progress which the very same people will now never cross.

And guess what. Yes. We find again that achievements exist only for the same few to easily win all over again.

Take for example the assault on the education system that the Blair Government undertook, with the overt aim of giving everyone the opportunity to gain a degree.

The result has been the commercialisation of the further and higher education system, leading to the prioritisation of winning fees, rather than focusing on the quality and commercial durability of the education provided. Running education as a business has almost certainly put its future in serious doubt.

It is a process which has already led hundreds and thousands of hopeful young people to begin professional life in serious debt and with academic qualifications which are to many businesses completely worthless.

Yet the debt-laiden graduates only find out too late that these quack qualifications don’t mean much at all to the world around them once they have left the supposed safety of the academic universe behind.

The world of big business and its new world of ‘created roles and specialisms’ has responded to the glorifying of academic qualification over the benefit of time-served experience by recognising degrees as a standard for anybody worth looking at. Not as a way to recognise specialism in itself. But as a like-for-like replacement in recent years for what would previously have been well illustrated by the attainment of 3 A’Levels, and only a few years before that just 5 GCSE’s.

Not everyone is cut out to be a CEO, Director or even a manager and non-academic people bring value to business which only when added to the contribution of real academics can it add up to a formula which is so much more.

Yet the dangerous mix created by this non-stop meddling has fuelled the entitlement culture. Qualification has become more valuable than experience and experience is not of value to those who have qualifications.

Letters on a CV are seen as more important than attitude, motivation, or the many other life skills which business used to intrinsically value, which they now overlook. The system now unwittingly leads them to place applications from people who would should be the next generation of commercial superstars straight in the bin.

It doesn’t stop there, and within a tick box, risk-averse culture where Recruiters and HR Officers – that’s people who have and never will do these jobs themselves – have overwhelming power over recruitment processes, there is an untamed focus on identifying reasons to not even shortlist candidates – usually because they don’t have a degree.

Good people are now denied jobs where they can thrive and the employers and companies themselves never gain access to the wider pool of candidates where the real benefits of selecting people with the right experience rather than just a paper qualification lies.

The consequences of this social meddling are already far reaching indeed and because the UK could never afford to provide education to 21 years as a standard – which in itself was never needed, it was inevitable that a new form of educational discrimination would introduce itself. And it’s the worst one of all. The preclusion from opportunity for even more young people based simply on cost.

Just in this one example of social meddling focusing on education alone, where impractical idealists have tried to impose a system of restrictions based upon no experience that they have or have in no way never known, we can see how far reaching the impact on consequences of quixotic thinking can be.

This is a pattern which is unfolding itself over and over again within all the areas of our lives where lack of consideration has been applied to the consequences of imposing the ‘consideration’ of rights and ‘positive’ discrimination on a society which will always have its own mind and not the one which political busy-bodies which to create for it.

The barriers to Social Mobility are all about the way that we think.

But the change needed and the tools which will enable us to break down those barriers and make that change will only come when decision makers with the power and therefore the ability to oversee that change go through a voluntary process of accepting that they themselves need to think differently.

That change will come about as a direct result.

That change cannot and never will be imposed.

 

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.

 

 

 

%d bloggers like this: