Tendring Topics………on line
What's really wrong with the economy? - an expert speaks.
A
recurring theme in Tendring Topics…..on
Line has been my conviction that the current financial crisis is not the result of the previous
government’s over-spending on benefits to the poor and disabled, but of the
greed and selfishness of the wealthy. I
believe that the way to get rid of that deficit about which we are always
hearing is not to cut expenditure but to make sure that everyone in the land
bears a proportionate burden of taxation.
I am appalled when I hear the leader of the Labour Party, the only
possible alternative government, proclaim that his party in power would pursue
a very similar policy to that of the present government – but would do so more
effectively and, if market forces permitted, a shade more humanely; hardly the
kind of policy that inspired the pioneers of the Labour Movement to brave dungeon dark and gallows grim, and whose
lifeblood dyed blood-red ‘every fold of the
peoples’ flag’! No wonder
neo-fascist movements like Ukip, BNP, and English Defence League are gaining
popular support.
I
am not an economist and am unable to substantiate my conviction. I was delighted therefore to read an article
by Dr Alan Storkey, economist and sociologist, in the Church Times (not generally thought of as 'loony lefty'!) of 14th June declaring that ‘It is the rich, not the poor, who are the
problem’ and backing that claim with
hard facts and figures.
Dr
Storkey writes that Public Sector net
debt was 36 percent of GDP (Gross Domestic Product) in April 2008, and then
doubled after the banking and other crises.
It is still climbing. The banks were and are a big part of the problem,
and the Conservatives pushed for deregulated banking. The Government claims to
have had a greater impact on debt than is the case. It still climbs by about £100 billion a year.
Yet, Labour would have
cut back nearly as much as the Conservatives, and could not have kept the
economy from what the Archbishop of Canterbury
has rightly called a depression.
The budget deficit
requires the Chancellor, George Osborne, to save perhaps £80 billion a
year. Supposedly, it is the poor on
benefits who are the problem. But the
underlying issue is that, over several decades, the rich have been milking the
state of hundreds of billions of pounds.
While the cost of
benefits to the poor is less than is generally believed, the rich have received
big handouts. The first is tax, where, as the Office of National Statistics has
declared, the poor are subsidising the rich.
The bottom 20 percent of the population pay proportionately 5.8 percent
more tax than the top 20 percent (38.2 percent rather than 33.6). If the rich paid the same proportion of
their income in tax as the poor, it would bring in another £100 billion a year.
That is not all. Higher income groups have benefited from
public-sector contracts, high public-sector incomes and bonuses. For example GPs (family doctors) received a
new contract in 2004, giving them an increase in pay from less than £80,000 to
more than £100,000 a year for doing less work.
This cost the NHS more than £2 billion annually.
There has been no revaluation of house
prices for council tax since 1993. Over
the past two decades house-price increases have mushroomed, but they are not
reflected in council tax, which gives another bonus of tens of billions to the
wealthy.
The big corporations avoid much VAT, evading
tax to the tune of tens of billions. The
personal income of some of the top ten percent exceeds that of the whole of the
bottom 50 percent, but some of this moves to tax havens, removing more billions
from revenue. Tax avoidance and evasion
is estimated by the Tax Justice Network to amount overall at £70 billion a
year.
In addition the banks have received profits
through seigniorage, the windfall that comes through creating electronic money,
amounting to between £20 and £30 billion a year, beside receiving government
support while they run tax havens and give dud payment-protection insurance.
These losses of revenue are an overwhelming
explanation of the Chancellor’s woes, and their solution. Moreover, the way these funds are hoarded,
moved and have created debt, explains why the economy is depressed, and will
remain so.
Dr Storkey’s
article in the Church Times concludes with the hope that, since the wealthy and
the political establishment will not debate these issues, it is time that the Christian
Church did so. Why not? Our God is one
who ‘puts down the mighty from their seat
and exalts the humble and meek………scatters the proud in the imagination of their
hearts ………fills the hungry with good things and sends the rich empty away’ - and the Anglican tradition of Christ’s
Universal Church now has a leader who probably has as wide a knowledge and
experience of the realms of high finance and low dealing, as anyone either in our
Government of millionaires or its supine and spiritless opposition.
The wrong sort of publicity!
I have never gone along with the idea that all publicity is good publicity. There is a difference between ‘fame’ and
‘notoriety’ and it is the latter that has been showered onto Clacton
and the Tendring District during the past year or so.
Quite
beyond the control of either the county or district council has been the amount
of violent crime – including murder and attempted murder – in and around
Clacton during the past year or two, one such incident less than a couple of
hundred yards from my front door! We’re
hardly comparable with the Midsomer of Inspector Barnaby or the Oxford of
Inspectors Morse and Lewis, but it’s quite disturbing enough in an area that we
had thought of as being quiet and peaceful.
Then there has
been the revelation that the Brooklands Estate in Jaywick is Britain ’s most deprived area, and that Clacton ’s Pier Ward is a ‘benefits ghetto’. In Pier Ward, the very
centre of our holiday town, the UK’s fifth largest number of people on state
benefit survive in former boarding houses converted into buildings with
multiple ‘bed-sits’. More recently we
have learned that schools in rural areas and seaside towns (that means every
one of Tendring’s schools) have an appreciably poorer academic record than
those in large inland towns.
There’s
not much that we do about local violent crime. Perhaps the Commissioner we
elected a few months ago will make a difference, though I’m not holding my breath! Michael Gove, the government’s Education
Secretary, really tries very hard, reaching back into the past even as far as
my school-days, to find a model to solve education’s ills. Perhaps he’ll succeed one day.
The
government is determined to ‘cut the red tape of planning legislation’ to free
developers to ‘create wealth’ and help pull Britain out of recession. In the ‘80s Mrs Thatcher’s government did
much the same thing to free the bankers, wealth creators and financial
risk-takers. Nobody at the time thought to mention that the risks were taken
with our money! We have to live with the result today.
It
occurs to me that the planning laws may need to be strengthened rather than
weakened. Stronger and more firmly enforced planning legislation could have
prevented Jaywick’s Brooklands Estate being transformed from a holiday township
with basic facilities suitable only for short-term occupation during the
holiday season, to an urban slum with cheap sub-standard homes occupied all the
year round. Is it not possible too that
similar laws might have prevented the boarding houses of Clacton’s Pier Ward,
being converted into cheap single-room bedsits in a Benefits Ghetto?
Don’t be in too
much of a hurry to cut all that red tape.
It may be all that is holding our fractured society together!
Another ‘bottom of the class!’
It
must have come as something of a shock to Tendring Councillors to know that
after over twelve months operation of their reconstructed recyclable and
unrecyclable refuse collection service, Tendring Council’s collection of recyclables
was the lowest of any local authority within the county of Essex !
Prior
to April 2012 every household in the district had been issued with a green
plastic box with lid and a supply of black plastic bags. The black bags were for non-recyclable
rubbish and the green boxes were for paper, cardboard and plastics of all kinds
for recycling. Householders who had more
recyclables than would go into the green box could put them in an
any-colour-but-black plastic bag or sack and put it on top of the green
box. Filled green boxes and filled black
plastic sacks were put on the boundary of the property to be removed on the day
of collection. It worked pretty well
though there was a minority of householders who ignored the green box and just
put all their refuse in a black sack or sacks as they had done in the
past. Most of us, I think, co-operated.
That
all changed in April 2012. All 60,000
households were issued with a red plastic box and two smaller green plastic
boxes with lockable lids. Our old green
boxes were now to be used only for plastic milk bottles and plastic bottles
that had held domestic cleaning fluids.
Other plastics – yoghurt cartons, food containers, plastic bags and so
on – were henceforth to be put with the non-recyclable refuse, in the black
plastic bag for landfill.
The
two plastic boxes with lockable lids were for food waste. The smaller (‘the caddy’) was to be kept in
the kitchen for the immediate receipt of food waste. The larger was to be kept outside for
reception of the food waste when the
caddy was filled. The black plastic bag
and filled container of food waste were to be put on the boundary of the
property every week, the green box with some plastics and the red one with
paper and cardboard were to be put out on alternate weeks for fortnightly
collection.
The situation was made worse by the fact that,
presumably to save a few pounds, the red boxes for paper and card had no
lids! This inevitably meant extra litter
blowing about the streets. It also meant
that when it rained between the box being put out and the arrival of the
collectors, the saved paper and card became a soggy mess. After receiving scores of angry letters, the
Council bought 12,000 lids for those red boxes and left them to be picked up by
householders at several centres throughout the Tendring District.
The
new recycling collection scheme was described by Tendring Councillor Nick
Turner as ‘a Rolls Royce’ service but
opposition Councillor Gary Scott wrote in the local daily Gazette ‘It is more like a
Robin Reliant Service!’ For
householders the system is
complicated and, particularly for the old, time and energy consuming. A kind neighbour carries my filled black sack
and two filled plastic boxes (waste food and either the red or the green box)
from my back door to my front boundary every week. I find filling the sack and two plastic boxes
every week and putting them by my back door completely exhausting. Yes, I know that I am very old and am consequently
feeble and lacking in energy – but then so are a great many other Tendring
householders. Don’t forget us. We pay
our Council tax and we vote!
Complicated,
exhausting and incomplete (tons of salvageable plastics go into landfill) the
system is much more ‘Robin Reliant’ than
‘Rolls Royce’. A stroll down any residential road on
‘collection day’ for that area will reveal that a great many, possibly a
majority, of householders simply ignore it and put out two three or four black
plastic sacks filled with refuse of all kinds for landfill disposal. I’m not at all surprised that Tendring
District Council is ‘bottom of the class’
where collection of recyclables is concerned.
It is only fair to mention that the Essex County Council has done its bit to discourage recycling by closing Martin’s Farm Disposal and
Recycling Centre in St Osyth, and
reducing the hours of opening of their other centres. No wonder there’s an increase in fly-tipping
and that there are always queues of motorists at Clacton ’s
Rush Green Road
Disposal and Recycling Centre.
I expect that both
county and district councillors are expecting a pat on the back for having
‘kept the Council Tax down to a minimum’.
I reckon that many voters will feel as I do that we would get better value for our money if the Council spent a little more and provided us with a better service.