17 November 2008

Unjust Rewards

With banks pissing away 100s of billions of dollars of their customer's money in obscene bonuses, it has become more difficult for laissez faire right-wingers to argue that 'the market' knows better than the state how to spend our money. It is also harder for them to lecture the poor on morality when the morals of the rich are so obviously perverse.

There is bound to be an electoral bonus for parties of the Left (even parties only notionally of the left such as Labour). If only Gordon Brown hadn't...
completely balls-ed up his first year as PM, the Labour party would find itself miles ahead instead of 5 points behind. As good as a 5 point deficit looks after being 20 points behind just 3 months ago, it still probably means we are heading for a terrible Tory government in 18 months.

As much as the Tories argue they have changed and are on the side of the poorest - the suspicion has to be that they are talking bullshit. The evidence is of Tory council after Tory council doing nothing but cutback services and increase charges on the poorest - whether it is bus fare increases under Boris in London, tripling the cost of getting married in Brighton and cutting social services - the Tories are the same party they have always been. Voting naively for David Cameron's cuddly image is actually more likely to get you a local MP more like Nicholas Soames and a government more like Thatchers during the 1980s recessions that tripled poverty, unemployment and interest rates and doubled the ultimate stealth tax - VAT. Indirect taxes are the Tories friends and the real tax enemy of those on modest incomes.

If Gordon really is to give us tax cuts in the near future and he delivers them to the poorest this really will expose the Tory agenda - cuts in Inheritance tax that only benefit the richest 6% are only popular because they are misunderstood when people see real money put into their wages and bank accounts - Labour could still grasp back the political agenda. My advice - abolish council tax - that is one of the most regressive and unpopular taxes - the cost about £35bn - exactly the sort of fiscal stimulus being talked about. Why not?


  1. It's got nothing to do with laissez-faire capitalism, it is mass fraud and counterfeiting on a scale never before witnessed. The banks are printing the money, giving it to themselves to buy real assets, while leaving the taxpayer holding the bag. The problem is the control of the money supply. The solution is for governments to print money, which would be interest free, rather than borrow it from a central bank, and then bleed the public in taxes to pay interest. This is what Abe Lincoln did with the Greenbacks and what JFK was starting to do before the coup d'etat of '63.

  2. TT: Interesting - I didn't know about JFK's re-flation - but I agree he was bumped off by the establishment. It's too much of a coincidence that his lefty brother was also assasinated.