Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Monday, February 15, 2016

Autarky for All

What’s the point of political devolution in a world of globalist economics, where democracy can’t change a thing because there’s no world government to hold multi-nationals in check?  A good question, to which the answer is to reject not only over-centralised government but also over-centralised economics.  Demand autarky for all.

Autarky – self-sufficiency – is a principled response to globalist economics.  It’s a product of the ‘Historical’ school of economics that arose in 19th century Germany and included such giants as Max Weber and Joseph Schumpeter.  Adherents maintained that economics could only be understood within the cultural context of a specific historical era, and not using standardised formulae or theories.  They were also often concerned with the plight of the common worker.  Autarky in the form of European preference has since been defended by the French Nobel Prize winner Maurice Allais.

Autarky is not against trade but views it as a way to obtain only those things that can’t be produced domestically.  The reason is to subjugate economics to politics, allowing ‘costs’ and ‘benefits’ to be expressed in broader, especially non-monetary terms.  The aim is not to exclude imports, but to exclude dependence, especially in terms of vital needs like energy and food that could become the subject of foreign economic reprisals.  This can be attempted at any scale but the full effect can only be seen to work at something approaching a continental scale, say an internal market running into the hundreds of millions of people and thus able to support the full range of products.  Any continent will do.  For example, why should the Chinese invest their surplus in Europe – or be allowed to do so by Europeans – when they still have unmet needs of their own?

The result is an avoidance of over-specialisation.  It therefore rejects many of the most sacred free market dogmas.  It’s the opposite, indeed, of economism, the idea that life is about short-term profit: always man as producer and consumer, never as colleague and citizen.  In The Wealth of Nations, Scotsman Adam Smith famously described how the manufacture of pins could be massively increased by division of labour.  Wessexman William Barnes, in Views of Labour and Gold, pointed out that such wonderful productivity levels have unacknowledged human costs.  There’s the insecurity in the market for jobs and wages that comes with having too narrow a skill, plus potentially the impaired health of repetitive strain or unwholesome working conditions.  Smith had largely admitted as much, and had seen a role for the State in relieving the results, but such reservations are rarely remembered when the story of the pin factory gets quoted today.

What’s true for the individual can be true for society at large: ‘economic growth’ continues without effective challenge as the supreme goal of public policy, despite the evidence that everywhere it results in huge environmental damage and social disruption.  Economics is said to be subject to ‘iron laws’, while everything else – ecology, culture, sentiment – is judged infinitely malleable.  Globalism, by insisting that nowhere is off-limits, that nowhere is allowed to defend itself, because that would be a ‘distortion’, encourages this race to the bottom.  Protectionism – economic protection – is everywhere decried but neither environmental protection nor social protection is possible without subordinating corporate actions to political will.

The United States is equipped with a very strong political will to use regulations and subsidies (and foreign policy) to pilot an economy that’s privately owned, though with public ownership of utilities and other resources on a scale that would astonish Thatcherites.  Paradoxically, the US is much better at all of this than we are in ‘socialist’ Europe, where we’re still over-reacting against the Cold War era in ways so accommodating to big business that they often appear suicidal.

From a long-term perspective, economism actually weakens economic power, because it under-values the other factors holding vulnerability at bay, such as political independence, assured resource availability and demographic stability (who pays the promised pensions?)  Note that all of these can be just as real, in a materialist sense, as economic factors, and in their long-term consequences can be even more transforming.

Markets are a means, not an end.  So too are States.  We currently have the worst of both worlds – anarcho-tyranny – in which States have largely abdicated their grand political function as governments but retained and expanded their bureaucratic power to regulate the problems arising from that political vacuum.  Ideas of sovereignty and a transcendent sense of history have been reduced to one of ‘managing the nation’ as a sort of imagined business: ‘UK plc’.

Western civilisation – which aims at substituting a universal market ideology for popular sovereignty – stands opposed to a European civilisation that values things other than price.  A European unity of purpose therefore demands the ability to define and defend something that differs from the familiar reality of being a protectorate of ‘the West’.  Subsidiarity needs an economic as well as a political dimension.  The solution with the lowest short-term costs attached may say ‘centralise’ but a holistic assessment may say the opposite.  Our political institutions must be ones that enable that judgment to stick.

Generals are often best-placed to warn politicians against militarism, against the hubris that will ultimately lead to catastrophic defeat.  Economists likewise need to warn against taking economics any more seriously than it deserves.

Thursday, June 25, 2015

Bex & the Bankers

Colin Bex was on the march against austerity held in central London on Saturday (left).  His attire included 'that T-shirt' from the 2005 election campaign in Dorset South.  (The question 'Westminster Diktat?' appears above an image of the Cerne Abbas giant labelled 'Clubmen Arise' and beneath it the answer, 'Roger & Out!')  Colin reports on the event as follows:

“Turn-out was quite impressive – but nowhere near where it needs to be.  Until a 65 million multi-cultural British population musters at least 1,300,000 (2%) of its number onto the capital's streets against the criminals at Westminster, there will be no progress – 650,000 (1%) is insufficient.

Some of the Muslims departing to be brutalised by ISIS recently voiced their recognition of the blatant betrayal which characterises the early third-millennium British establishment.

I was within an ace of nobbling Russell Brand to tell him to steal our ideas (as I did Jeremy Corbyn), and to stop telling his fawning fan-club not to vote, but as he quit the rostrum, he leapt over the barrier and sprinted down Victoria Street to avoid being mobbed – or being engaged in a conversation with me unfortunately...”

It wasn’t Colin’s first public appearance since the election.  Last month he joined a ‘Positive Money’ demonstration outside 10 Downing Street – and afterwards in Parliament Square Gardens – supporting presentation of a petition for conversations with the Government to re-cast the monetary system by way of a Money Commission.

Our aim is not just to turn politics the right way up, so that local areas dictate to the centre, which acts solely as their executive agent; it’s to turn economics the right way up too, so that it becomes the means to conserve life on earth rather than to destroy it.  This month, scientists reported that a mass extinction of species is underway, caused by humans, and of which humans risk becoming part.

Underpinning this destruction is the obsession with economic growth, with having more and more of everything for more and more people, while never counting the environmental cost.  Economic success is defined in terms of rates of return that exceed the rate at which the environment renews itself.  Political interests have become slaves to economic interests who take and do not give.  Real wealth is extracted through unjustifiable levels of rent and speculation safeguarded by public policy; we need to renew politics so that economics can be made subservient to it and those abuses thereafter ended.  A sane economy must cost factors of production responsibly, for example through land value taxation and public ownership of public utilities.  One of its mantras must be ‘resource efficiency, GOOD; resource depletion, BAD’, another, equally, must be that we really are all in it together and that making ourselves greener by outsourcing our pollution to less developed countries is cruel, not clever.

The meme now circulating in politics and the media is that the banker-bashing is over, that normal times are returning.  It’s bad news if they are, since the revelations of corruption certainly haven’t abated.  The surface has barely been scratched.  Not only are the suspects still at large but there has been no fundamental reform of the institutions they helped to wreck.  The taxpayer is still footing the bill and, short of a revolution, is unlikely ever to be repaid.  The UK Government worries more over the possibility that crooked banks here might re-locate their headquarters than over how we might build an economy that is not dependent upon them.  In their blinkered imagination, politicians believe that devolution is all about creating new, go-getting ‘global cities’ like London.  A Northern Powerhouse in Manchester and Leeds.  A Western Powerhouse in Bristol and Cardiff, or Plymouth and Exeter.  A Southern Powerhouse in Hampshire.  It’s all about bowing down to money.  None of it’s about standing tall.

In the short-term, pouring millions of the unhappy onto London’s streets keeps alternative ideas alive and helps them circulate.  It must always be understood that it has no impact on a government determined to govern – up to 2 million were there in 2003 to oppose the Iraq War that happened regardless.

In the medium-term, it must be realised too that voting for anyone but the main London parties is the only remedy.  We, the people, punished Blair, Brown and Cameron for Iraq.  No, we didn’t, did we?  We’ve re-elected the war criminals three times over now and still wonder why terrorists mean us harm.

In the long-term, we'll have no need of events in London.  In the long-term we want rid of it.  We want its political, economic and cultural power over us set at nought in a free Wessex powerful enough in its own right to ignore it – and maybe laugh at how its fake democracy and its fake finance were ever taken so seriously.

Saturday, April 25, 2015

A Wealth of Possibilities

Last week, BBC1 aired a programme called Millionaire Basement Wars.  It described how, over the past decade, some 2,000 new basements have been excavated beneath high-value properties in central London, most notably in the Royal Borough of Kensington & Chelsea.  The buildings are often listed, so there’s little scope to extend up or out.  That only leaves down.

Some basements are merely one-storey.  Some are two-storey.  Some, known as ‘icebergs’, are bigger than the house above them.  They provide room for all those essentials that wouldn’t otherwise fit.  The cinema.  The gym.  The sauna.  The swimming pool.  The hairdressing, manicure and pedicure suite.  The garage for five classic cars.  In one case, the developer provided an indoor, underground waterfall, 30 feet high.  Why?  Rich people get bored easily, he explained, so they need something to talk about.

That’s the problem with extreme wealth.  It’s so boring.  There’s a point beyond which increased wealth doesn’t make you any happier.  All it does is deprive others of the happiness that that wealth, better distributed, could have given them.  Economic efficiency without social efficiency doesn’t deliver the greatest good of the greatest number.  ‘Trickle-down economics’ just distorts priorities, increasing the production of, say, caviar rather than hospitals.

Saying this isn’t ‘envy’ at all.  Envy is wanting a better life for yourself and expecting somebody else to do something about it.  Wanting a better life for everyone isn’t envy.  It’s justice.  The Scandinavians have a phrase for their supportive social welfare system that explains why they also have a culture of enterprise: ‘secure enough to dare’.

Of course, the same is true of power.  When you think what could be done, locally and regionally, with just a fraction of the taxes we send up to London every year to subsidise the infrastructure of imaginary money-making, it’s enough to leave you feeling genuinely sick.

We’ve allowed ourselves to become the easy victims of a narrative of aspiration.  One in which the minor folk turn on each other and not on those whose industrial-scale grasping is what makes us minor.  ‘Hard-working families’ has become the must-have soundbite for all politicians with ambition.  You can almost hear the anxious twitching of curtains and the rumbustious rustling of today’s Daily Mail.  There are two things wrong with it.  One, naturally. is the idea that only families count.  That those working too hard to have time to form a family contribute nothing to society.  The other is that ‘hard work’ is easily recognisable.  It isn’t.

In the commercial sector, hard work will get you nowhere if what you’re working hard on isn’t profitable.  It’s the quality – that's to say, the relevance – of what you’re doing that matters, not its quantity.  Working smarter, not harder, is the key to productivity and profitability.  All economy, as Karl Marx noted, is economy of labour time.  In 1932 Bertrand Russell wrote a very perceptive essay entitled In Praise of Idleness, in which he pointed out that ultimately the purpose of work is to create the ability to stop doing it.  That in turn poses other questions.  How much of the work we currently do is necessary work?  How much of it would we miss if it weren’t there? 

Arguably, a lot, perhaps most, of the work we do is highly damaging, psychologically, socially and environmentally, in which case our quality of life would be greatly improved not by economic growth but by economic shrinkage.  High net immigration is a sign of an unhealthy economy, one that is taking more than its fair share of the world’s resources and so dragging in the inhabitants of other countries who have come here to follow their wealth.  Internal migration, with London as the magnet, is another aspect of the same phenomenon, driven in that case by the power that London has to tax the provinces for its benefit.  The only solutions that the London parties can imagine – like HS2 – do not enable those provinces to serve themselves but only reinforce metropolitan dominance.  Underpinning them all is the silly idea that we can have more growth in total, let alone that we need it or want it.

We can see the outlines of a better solution forming but before we examine it further, let’s remind ourselves how irrelevant the London parties are to it.

The Blue Tories have been so busy lately promising give-aways it’s a wonder they’ve not been arrested for corrupt electoral practices.  Right-to-Buy is always a vote-winner because who’s going to vote against free money?  Since the super-rich don’t pay tax, it’s the squeezed middle who’ll foot the bill and they always vote for the Blue Tories anyway.  Plus, they can be pacified by exempting up-to-one-million-pound properties from Inheritance Tax.  Those whose homes have accelerated in value while they sat back and did nothing will enrich their children and consider it all their own really ‘hard work’.  As we’ve shown, half of all Inheritance Tax receipts come from London and the south-eastern corner of England.  It’s the taxes of every other corner that have created the boom economy there and it’s the taxes of every other corner too that will make up the shortfall in UK Government revenue if no tax is paid on homes up to £1 million.

Do we have the right to be angry?  Wait and see.

The Yellow Tories’ pitch to the public is that they’re the party to rein-in the extremes.  Without their moderating presence we could see radical change.  Cameron-Farage.  Or even Miliband-Sturgeon.  Time was when the Liberals viewed themselves as radicals.  Middle-of-the-road radicals maybe, but at least nominally radical.  There’s a strong possibility though that they’ve misread the times in which they now operate.  There’s a thirst for change, with Scotland leading the charge.  And that thirst for change operates in the wider context of a European revolt against Wall Street corporate colonialism and its dismantling of democracy.  The way money is being shovelled into the Purple Tories shows how far even the old guard have lost trust in the established parties and want things shaken up, just a little.

The Greens are promising to build 500,000 homes, against the 200,000 promised by both Blues and Reds.  (The Yellows want 300,000, including at least ten new garden cities.)  In the areas under pressure, there isn’t enough derelict land to provide anywhere near those sort of figures.  So if you’re not comfortable with seeing the Wessex countryside transformed into New West London, that’s yet another option to cross off the list.  What’s “green” about turning (mostly) greenfield sites into half a million houses?

The Red Tories look every bit as irrelevant as the rest.  When Miliband tries to position them as the voice of working people throughout the UK, it’s a muffled echo from the 70s that won’t do any more.  Who are really the selfish nationalists?  The SNP, who speak for Scotland and ignore the other home nations (while practising a genuine internationalism)?  Or Labour, who speak for the UK and ignore the rest of Europe (while boldly going wherever the White House directs)?  Labour are trying to tap into a sense of British-based solidarity that died with the industries Thatcher slaughtered.  For three decades they’ve been trying to get it back.  They can’t admit they’ve failed.  And that’s why they’re being superseded.

We look forward to the continuing wipe-out of the Unionist parties in Scotland.  In Wales, it will take longer.  Despite Leanne Wood’s master stroke in describing the London parties as four shades of grey, the fact is that the Welsh seem to like their bondage too much to break free of it right now.  It is, however, only a matter of time.  Renewed interest in regionalism and federalism within England points to a generalised demand for self-government that will not stop at Celtic borders.  And will not be content with any cobbled-together nonsense of metro mayors or combined authorities either.

What we’re seeing is a convergence of several themes.  Perhaps the most pivotal is the rise to real power of the first generation who lived through Thatcherism as young adults, who watched the kindlier world of their childhood being shattered by brash London loadsamoneys, backed up by a semi-fascist State with no respect for local democracy.  (A State that aped Labour instead of really challenging it.)  No wonder there’s a thirst for change: vengeance has been long awaited.

Such change requires a framework for action, one which the idea of a Europe of small nations and historic regions readily provides.  The scale of change throughout Europe over the next decade, as one country copies another, could well match that which followed the fall of the Berlin Wall.  This time it will be the turn of the old imperial states of western Europe and the smug elites they defend.  The only role here for dinosaurs like France, Spain or the UK is to keep getting in the way until patience can be contained no longer.

At the regional level, and that of small nations of equivalent scale, there’s a lot of work to be done, in creating new institutions, breathing life into long-suppressed identities, and in taking back our stolen wealth and power from London and its co-conspirators.  At the European level, there’s even more to be done.  To break the economic and political stranglehold of the USA and awake to our common interest as Europeans.  To take the banking system apart and bring to justice the thieves who run it.  To create the climate of thought that will allow our vital industries and services to be taken back into common ownership with little or no compensation payable to those who have sucked them dry.  To end private landed estates not through the minor irritant of taxation but through a radical re-evaluation of title.

Those who wait for the Labour Party to even consider such a programme will wait for ever.  The programme is one that needs to be more radical than anything on Attlee’s agenda in 1945.  Even to do as much as Attlee did is impossible in today’s Britain.  It won’t be done at the British level, because the British level is now irrelevant.  It’s a job for the Europe of a Hundred Flags.  Change will come about through the growth of nationalist and regionalist parties that are not afraid to define London as their adversary.  Not the London of ordinary Londoners but the London of assumptions, assumptions of innate superiority in politics, economics and culture.

Labour cannot deliver that.  Labour have their sights on way too many marginals in London and the surrounding shires to ever be credible as an authentic voice for marginalised Britain.  Labour have no plans to cut off London’s drip-feed of our tax money.  Labour have no plans to abolish entire Whitehall departments in favour of genuine localism.  They have no plans to get even with the parasitical City of London.  They have no plans to shut down huge swaths of London's cultural funding and disperse it across the UK.  That is why the nationalist and regionalist parties must do all of this for them.

Tuesday, April 7, 2015

Toward a Truly Free Market

Guest contribution by Nick Xylas, WR Council member

The following is a review of Toward a Truly Free Market: A Distributist Perspective on the Role of Government, Taxes, Health Care, Deficits, and More, by John C. Médaille, published in 2011 by ISI Books of Wilmington, Delaware, USA.

When in my wife’s home town of Weirton, West Virginia, it is almost impossible not to notice the words “WEIRTON STEEL – AN ESOP COMPANY” written in giant lettering on the roof of the steel mill that dominates the town.  Weirton Steel was, for a long time, West Virginia’s biggest employer.  But these days, the mill is operating at less than a third of its total capacity and that mantle has been passed to Wal-Mart, a company, owned by the obscenely wealthy Walton family, which pays its employees so little that new entrants are given guides on how to claim welfare benefits in order to supplement their wages.  It brutally illustrates a theme running throughout this important book from John Médaille, namely that capitalism, far from being socialism’s polar opposite, inevitably leads to it when left unchecked.

Médaille is one of the leading advocates in America today of distributism, a political philosophy rooted in Catholic social teaching.  Whilst he can in no way be accused of running away from his Catholicism, Toward a Truly Free Market is written for a general audience, so the smell of incense is not as overpowering as it can be with some distributist works.

The first section of the book provides a general overview of economics.  Médaille prefers the term 'political economy', the name by which it was usually known until some time in the last century, when it changed as a result of economists’ desire to paint their discipline as a natural science like physics, rather than the result of conscious choices by governments and societies.  Speaking as someone for whom the business pages of the newspaper may as well be written in Estonian, it is testament to Médaille’s skills as a teacher that I was able to understand most of it.

There then follows a series of chapters on specific topics relating to the problems caused by morality-free capitalist economics and how to fix them.  The key doctrine, on which all the rest hinge, is that of the just wage.  Médaille avoids giving a specific figure for this wage, as that will be different in different times and places.  Rather, he bases it on general principles: that it should be enough to support a family’s basic needs on a single full-time income; that it should be enough to also allow that family to save money instead of living pay cheque to pay cheque; and that it should give them security against enforced periods of unemployment (sickness, layoffs etc) with minimal recourse to welfare benefits.

Finally, the book considers in detail two examples of distributism in practice: the region of Emilia-Romagna, on which more shortly; and the Mondragon co-operative.  The latter is a network of workers’ co-operatives in Spain with over 100,000 members and €33 billion in assets.  The survey of its activities provides the launch pad for a more general overview of the co-operative movement and of ESOP (Employee Stock Ownership Program) companies, which give workers a stake in their ownership.  Médaille warns that there exist fake ESOPs such as Enron, created primarily as a tax dodge, but commends the real thing (I’m afraid I don’t know which category Weirton Steel falls into).  He also sees strong unions as vital for worker participation in the economy, though as he is writing within an American milieu, the restoration of the guilds doesn’t play as large a part in his thoughts as it traditionally did for English distributists such as G.K. Chesterton and Hilaire Belloc.

There isn’t space in a review to do justice to the full range of Médaille’s arguments, but two things particularly commend it to Wessex Regionalists for me.  The first is the chapter on the role of government.  Médaille vigorously defends the ability of government to provide for the common good, as against the current political orthodoxy, which sees it as an impediment to the ultimate goal of capitalism without democracy (hence the current round of secret trade negotiations seeking to give corporations the right to sue governments for any regulations they deem too onerous).  His philosophy of government revolves around what he terms a horizontal and a vertical axis, represented by the principles of solidarity and subsidiarity respectively.  Solidarity means the creation of networks between different sectors of society, and different governments.  It particularly means the ‘preferential option for the poor’, examining all policies in the light of how they affect the most vulnerable in society.  Subsidiarity means that no decision should be taken at a higher level of government that could be implemented at a lower one.  It means both local control and local funding, since funding dispensed from central government to local communities can appear to be 'free' money, leading to irresponsibility in the decision-making process.  These principles have always been at the heart of Wessex Regionalist thinking, and it is a pleasure to see them so eloquently expressed.

The section on Emilia-Romagna, the Italian region centred on Bologna, will also be of interest to readers of this blog.  35% of the GDP of the region is supplied by co-operatives, but unlike Mondragon, where the co-operatives operate like divisions of a single company, the Emilian co-operatives are independent firms, of varying sizes, all supported by a regional development agency (ERVET) and the National Confederation of Artisans (CNA).  Unfortunately, the questions that Wessex Regionalists will naturally be asking themselves at this point are not ones that the book really concerns itself with.  How did co-operatives become such a large part of the economy?  How big a part did Italy’s decentralised system of government, with strong regions, play in allowing them to flourish in this way?  Which parties and political groupings supported the development and which opposed it (Médaille does mention that the Fascists suppressed the co-operatives in the 1930s)?  Nonetheless, I commend this book as a starting point that will hopefully lead Wessex Regionalists towards further investigation of Emilia-Romagna as a potential model for our region’s economy, rather than Wessex becoming one more plantation in the global slave state.

Thursday, May 1, 2014

Digital Devastation

As the implications of the Heartbleed bug continue to be revealed, it becomes clear that while a digital society, including a digital economy and digital government, delivers many benefits, many of these are exceedingly fragile.  Two items from the press last month further illustrate the point.

The first is from Metro, which reported on the launch of the London regime’s Computer Emergency Response Team (CERT-UK), tasked with fighting cyber attacks of national significance.  Cyber-security doesn’t come cheap and is never 100% guaranteed.  Scenario-writers are increasingly highlighting the threat that hackers pose to the operation of vital infrastructure, particularly where manual back-up has been scaled-down for reasons of cost-cutting.

On the same day as the Metro story, the London Evening Standard ran with a report on HFT – high-frequency trading – in short, the use of computer algorithms to drive stock markets.  So intense is the competition that even the use of microwave radio rather than cables to send the signal can shave off the crucial nanoseconds needed to close a deal.  Machines don’t think, so while the alternating euphoria and panic of the market are self-correcting with human intervention, they can easily get out of control in its absence.

The article was written by James Rickards, author of The Death of Money – The Coming Collapse of the International Monetary System.  It takes the form of a review of work by another financial journalist, Michael Lewis, author of Flash Boys.  Rickards is no optimist:

“The gross notional value of derivatives of all kinds owed by banks is already greater than 100 per cent of global GDP.  Complexity theory tells us that the worst catastrophe that can occur in a system is an exponential function of the scale of the system.  This means that when you double the system scale, you increase systemic risk by a factor of 10 or more…  The collapse is already on its way but HFT will make it bigger, faster and impossible to stop.  The solution is to ban HFT and most other derivatives.  Don’t expect that to happen.  Instead, get ready for the avalanche.”

So, what does this mean for Wessex?

Firstly, that the free market is about to eat itself.  All that deregulation, explained away as promoting beneficial economies of scale, is revealed as the piling-up of system instability through removing barriers to growth.  Barriers to growth are an essential part of a sane, self-governing society that is not at the mercy of unaccountable forces.  They are unfair only in the sense that having a skin is unfair to diseases.

Secondly, that, since the UK is, politically-speaking, owned by the City of London and regularly robbed by it, reform driven from above is impossible.  Only the building of a resilient regional alternative makes any sense.

Thirdly, that progress towards building such an alternative needs to be stepped up.  That includes demanding, ceaselessly, the return of our taxes from London, to be spent in future on local and regional priorities.  In Sweden, 36% of the tax take is raised and spent locally and regionally.  In federal Germany, the figure is 29%.  The OECD average is 26%.  The UK figure?  5%.  Our paranoid Norman rulers still don’t allow us even to have a regional tier in the first place.

Wednesday, November 20, 2013

The Worker’s Hire

“They hang the man, and flog the woman,
Who steals the goose from off the common
But leave the greater felon loose
Who steals the common from the goose.
The law demands that we atone
When we take things we do not own
But leaves the lords and ladies fine
Who takes things that are yours and mine.
The poor and wretched don’t escape
If they conspire the law to break;
This must be so but they endure
Those who conspire to make the law.
They hang the man, and flog the woman,
Who steals the goose from off the common
And geese will still a common lack
Till they go and steal it back.”
Anon., The Goose and the Common

The Tolpuddle Martyrs formed a union because their plummeting wages barely kept body and soul together.  It wasn’t that farmers couldn’t afford to pay their labourers more; they just chose to keep the money to themselves in an era of over-supply of labour brought on by mechanisation.

Today, the idea of a ‘Living Wage’ is still alive and not-so-well.  The phrase is one that was being used over 80 years ago by the Independent Labour Party (not the same as the Labour Party), who made it the first item in their 1928 political programme.  The alternative to a living wage is what exactly?  In a society with any sort of conscience (or a reasonable fear of crime), the alternative is to make up the gap between wages and the cost of living through social security payments to those in work.  What that means is that well-run businesses that can afford to pay decent wages pay tax to subsidise the labour costs of badly-run businesses that can’t or won’t.  If you’re a businessman, why should you be paying for somebody else’s workforce?  They work for him, not you.

Do minimum wages destroy jobs by imposing demands the market cannot bear?  The point of a minimum wage isn’t to make it more difficult for employers to take on labour, even though that may be a consequence.  It’s to reduce the burden on taxpayers generally that is caused by allowing specific employers to take on labour at below true cost.  (Miliband’s call this month for tax breaks for employers who pay a living wage is flawed for this reason: the public purse still suffers.)

Depressingly, none of this is new.  In 1795 the Justices of the Peace for Berkshire met in Quarter Sessions at The Pelican Inn, Speenhamland, near Newbury.  They decided to raid the rates to supplement the wages paid by the local farmers, thereby staving off the threat of revolution.  The amount of the subsidy depended upon the price of corn and the size of the labourer’s family.  The ‘Speenhamland system’ had already been trialled in some parishes and was soon copied by parish after parish across southern England (it was never very common further north).  The results, predictably, were a large increase in the poor rate, improvident marriages, and a general pauperisation of the agricultural labourers.

Another similar scheme was the roundsman system, where the farmers employed paupers in turn and the parish subsidised their low wages.  In other districts farmers agreed to employ a certain quota of paupers according to the rateable value of their property (a system known as the labour rate).  Farmers, naturally, preferred subsidised pauper labour to the labour of free men because it was cheaper.  The independent labourers were frequently dismissed and in time became paupers too.  Folk grew accustomed to accepting relief, and demoralisation spread.  Malthus, whose famous essay on population was published in 1798, condemned outdoor relief as leading to an over-populated countryside.

Farmers as a class suffered too because of the heavy burden of the poor rate.  Moreover, while the guaranteed income prevented malnutrition and thus appeared to maintain productivity, it also removed labour market competition – and any incentive to work harder for the farmer’s benefit – and in this respect caused productivity to decline.  The result was the Poor Law Amendment Act of 1834 that replaced outdoor relief with the workhouse.  (In fact, in southern England a great deal of outdoor relief continued to be granted to able-bodied folk, which is one reason why Chartism never took hold in Wessex.)

Regulating wages by law has a long history, maximum wages being as likely a theme as minimum ones, though always for occupations at the bottom of the social scale and never for those at the top.  In the aftermath of the Black Death, for example, the Statute of Labourers 1351 sought to force wages back to pre-plague levels.  (It was never going to work, as supply was far less than demand and the labourers had never had it so good.)

An incomes policy that aims to be fair should treat wages and welfare holistically.  It shouldn’t rob efficient businesses to pay inefficient ones.  Nor should it allow low-wage employers to avoid contributing to the top-up by moving their tax affairs offshore.  International companies incapable of honest accounting shouldn’t just be fined: they shouldn’t be permitted to go on trading here.  We have plenty of our own folk capable of replacing them.

An incomes policy that aims to be fair shouldn’t tackle child poverty in ways that create incentives to have large families that others then fund.  Large families, often a burden on the taxpayer, are always a burden on the planet and we cannot expect responsibility from the Third World if we do not set an example.

An incomes policy that aims to be fair should recognise that when the London regime tells Wessex that we need hyper-growth in population to drive prosperity up, the reality is that a larger workforce competing for jobs will drive wages down.  Jobs can only expand in line with population if environmental resources are degraded at an accelerated rate.

History confirms all of this, but we don’t want to know about the past, do we?  We’d rather auto-pilot on raw emotions.  The truth is that past generations have responded to the very same emotions in sometimes disastrous ways.

But there is new ground to be broken.  Many schemes have been devised for income redistribution, including a basic income for all, in effect paying everyone what is currently paid only to the poor.  Why has it not been tried?  Is it because it demonstrably wouldn’t work?  (It long worked for child benefit, and small-scale experiments confirm its practicality.)  Or is it because its revolutionary potential is all too real?

Payments could be funded from a progressive income tax, an inheritance tax, a land value tax, or, if the idea of public ownership is successfully rehabilitated, from the returns on natural monopolies as a ‘social dividend’.  More radically still, new money could be issued directly to individuals instead of to banks, who would have to rely on attracting deposits to gain access to it.  The savings in administrative costs could be huge.  Tax and social security systems could be integrated and simplified.  So too could utility bills, council tax and ground rents if we think radically enough.  The region can make a good case to be the best scale at which to organise such things because it aligns with the technical requirements of many of the utilities.

The moral argument is compelling: since no-one chooses to be born into our society then our society has an obligation to ensure the basics of life to all who comprise it, without discrimination.  The political argument is equally compelling: universal public education and health care have created a middle class interest in securing the best for themselves that also secures the best for others.  The same would be true of universal welfare payments.

The first section of the National Assistance Act 1948 formally abolished the despised legal status of pauper.  It’s more than a shame that today’s London politicians and the right-wing media still haven’t caught up with the fact.  Instead they argue that the dismantling of universal systems is fair because the rich cannot be made to pay towards them and the only, feeble way to get back at the rich is through means testing.  Not so.  The way to plug the gap between an increasingly powerless poor and a class of super-rich who can laugh at sovereignty is through politics – and accountancy – with teeth.  If the rich choose not to contribute to society, then society, through its definition of the property and asset-movement rights it chooses to uphold, must cease to protect them.  In short, the law must die if justice is to be born.

Tuesday, March 5, 2013

The New Menu

“the merchant’s function… is to provide for the nation. It is no more his function to get profit for himself out of that provision than it is a clergyman’s function to get his stipend. This stipend is a due and necessary adjunct, but not the object of his life, if he be a true clergyman, any more than his fee (or honorarium) is the object of life to a true physician. Neither is his fee the object of life to a true merchant. All three, if true men, have a work to be done irrespective of fee – to be done even at any cost, or for quite the contrary of fee; the pastor’s function being to teach, the physician‘s to heal, and the merchant’s, as I have said, to provide. That is to say, he has to understand to their very root the qualities of the thing he deals in, and the means of obtaining or producing it; and he has to apply all his sagacity and energy to the producing or obtaining it in perfect state, and distributing it at the cheapest possible price where it is most needed.”
John Ruskin, Unto This Last (1862)

Europe’s ‘horseburger’ scandal reveals starkly what happens when Ruskin’s vision is rejected. It is particularly embarrassing for the Co-operative Group to find horsemeat in its ready meals, given the Co-op’s origins as an alternative economic model that was supposed to guarantee working folk wholesome food, free from adulteration by unscrupulous shopkeepers.

Rogue traders there always are, especially in a culture that uncritically lauds enterprise and can’t easily spot when creativity crosses over into crime. It’s also a culture that regards taxation as theft, so we can’t expect any more food inspectors to be hired in current circumstances. That leaves inspection to the supermarkets, who will pass on the cost to the consumer. We pay one way or the other, but what we really need is a change of mindset, towards one that promotes zero-tolerance of bad business practices in the first place. Perhaps a revival of the old guild system?

There’s no doubt that our food supply is a mess in all kinds of ways. Take a look at one website that sets out all the inter-related aspects we need to be thinking about reforming. We’ve written before about food, and wouldn’t change a word of that. So it’s good to see that we’re in at the beginning of a worldwide re-evaluation of what goes on our plate and how it gets there.

Friday, January 25, 2013

New Wessex, New World

Our attention was recently drawn to a couple of very interesting links.

The first link is to a blog that asks of Mebyon Kernow why it has a view on anything more than the internal affairs of Cornwall:

“…the MK manifesto is littered with ‘policies’ relating to national and global issues over which the party will never have any influence. It starts with MK’s ‘mission statement’: ‘Mebyon Kernow is a modern and progressive political party, campaigning for a better deal for Cornwall and a fairer, more equitable World.’ It was all looking good right up to those last six words. I’m sure many of us share their desire for a ‘fairer, more equitable World’ but in that quest, wouldn’t you be better off supporting organisations like Oxfam or the UNHCR? They are probably in a better position to deliver it than Mebyon Kernow.”

It’s a fair question and one that we too need to ask ourselves from time to time.

Strategically, there are two sound answers to the question. One is that a party whose long-term aims include having its own MPs at Westminster must be willing to engage with the full range of political issues, regardless of how much influence it currently wields. Or else lose votes to other parties that are willing. The other is that in a globalised world we must be alert to the indirect consequences that globalisation has for us, even as we do our bit to put globalisation into reverse. Another, tactical answer is that nationalist and regionalist parties have deliberately emphasised their outward-looking stance in order to refute allegations of chauvinism, isolationism and racism. Unionists and centralists fling such mud routinely, even though it would stick far more readily to themselves.

We believe that Wessex has the right to as much self-government as it wishes. We don’t think that would ever extend to independence but it’s not for us to say what future generations may think. As regionalists we’re comfortable with the idea that some wider decisions may best be made collectively, so long as we believe that it’s in our interests for this to be so. It’s not the case then that Wessex – or Cornwall for that matter – can only have a political movement that debates dog bins and bus shelters, and little more. Our voice has been silenced too long for us to allow others simply to assume that they have the right to speak on our behalf in the UK, the EU, or the UN. It’s our job to speak up for ourselves on every issue and to relate it back to our core beliefs.

Can the Wessex tail wag the world dog? Obviously not, but we can align ourselves with wider causes that benefit us, that help spread the values of political, economic and cultural decentralisation.

One such is the idea of the optimised, steady-state economy, which we have mentioned before, and which is the subject of the second link. The table there is a real call to action for those dissatisfied with the status quo. We need to take the crisis element out of economics, because – don’t panic – as everyone from Orwell in Nineteen Eighty-Four to Klein in The Shock Doctrine has indicated, the engineering of perpetual crisis is how social control is maintained.

Ultimately, however, we must not lose sight of our primary goal. It is very easy to be taken in by those who insist that everyone, everywhere, has to sink their particularisms in a unified campaign to topple the global power elite. And do we get our particularisms back afterwards? Not if history is any guide.

So there’s a balance to be struck between putting Wessex first and acknowledging the impact the wider context has. Between minding our own business (as much as possible) and showing solidarity (where we can be sure our understanding and empathy really are well-directed). Thinking globally, acting locally, but above all planning (and organising) regionally. Wessex: 95% of the effort, all the other causes: 5%. That sounds about right. But we do need to add that spice to life, if only to have the tools with which to paint a picture of a better Wessex than the one we inhabit today.

Thursday, January 26, 2012

Whose Poet?

“'William Barnes, you say? What possible relevance could he have today?' 'Well, I suppose people who like Dorset might be interested, or some local historian or Wessex regionalist, but as for me…'. So goes the reasoning of many. It is false reasoning...”
Fr Andrew Phillips (2003), in the foreword to a reprint of Barnes’ Views of Labour and Gold

Nice piece in the (London) Guardian yesterday about William Barnes. Nothing about Wessex though, the place that Barnes himself revived in 1868, after centuries when the word was seemingly only used by historians.

The journalist seems to think that Barnes can be promoted as the English equivalent of Robert Burns. The Wessex equivalent, fine, with Barnes Night (22nd February) an established tradition in parts of Dorset and now spreading further afield. But a national poet for England? A poet who wrote in the Wessex dialect? No doubt the London hacks will all want his poems translated first before they read them. Can’t be having them in wurzelly, ‘inaccessible’ language now, can we? Dorset dialect is dead, implies the article. Maybe, in the trendy parts where hacks hang out. They really do need to mix a bit more.

Perhaps national poet isn’t too far-fetched. For Fr Phillips, Barnes “is someone of whom not only Wessex should be proud, but all England, and indeed one whose vision is today of global importance.” Yet we do think Wessex is something other than just another name for England. East Anglia, Mercia and Northumbria are not fictional places whose inhabitants have no legitimate opinions, nor great poets of their own to proclaim. Besides, to see Barnes purely as a poet would be to belittle the man, who should be remembered for many talents.

Views of Labour and Gold, first published in 1859, is a treatise on political and moral economy that deserves to be read everywhere, but especially in Wessex, from where its wisdom arose. It speaks prophetically against the powerbrokers in London and beyond, of ‘Saxon Economics’, and reminds us that work and money are our servants, not our masters. It’s not just for fans of Dorset, or local historians, but definitely for Wessex Regionalists too.