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Austerity, Ed Miliband, Fake Left, Recovery vs Crisis, Stop the war on welfare

From Crisis to Recovery: tax the rich, cancel the debts, raise wages, extend the benefits

Reaganomics-trickledown

Austerity, the universal poison offered as “medicine”

According to referenced Independent post [1], UK Labour-leader Ed Miliband finds it a “progressive idea” to actually strangle the British youth: he is proposing to restrict access to Jobseeker’s Allowance and income support only to those job-seekers who have acquired skills at Level 3.

The first question we can raise upon above proposal: how can such blatantly Tory-idea come from a Labour-party leader? The answer, as Richard D. Wolff – Harvard, Stanford, Yale-trained economics professor – puts it:

  • Center-right governments in Britain and Germany do it. So do the center-left governments in France and Italy. Obama and the Republicans do it, too. They all impose “austerity” programs on their economies as necessary to exit the crisis afflicting them all since 2007. Politicians and economists impose austerity now much as doctors once stuck mustard plasters on the skins of the sick. … With few exceptions, major political parties everywhere have imposed capitalism’s two-step hustle.” [2]

The actual path to Recovery versus the “Trickle-down” myth

These process-flow-charts [3] – in harmony with professor Wolff’s explanations [2] – have been drafted to display the processes driving the economy into a cycle of poverty versus the actual path to Economic recovery.

The reason why our economies are in a disastrous state is the fact that all Governments of the West – specifically within the EU – pursue the exact opposite policies than what would lead to Recovery [2,3]. This flawed, in fact disastrous economic policy is applied as a general rule all over the West. Regardless of any parties’ assumed Left or Right identity, all mainstream political forces follow the same universal Right-wing neoliberal ideology [1, 2, 3, 11, 13, 14], marked by Austerity, Cuts, Debt and Privatisations, ever-decreasing wages and cutting Government spending and benefits; all relying on the “trickle-down” myths and neoclassical market-fundamentalism.

The implementation of the neoliberal Tory-policies is not only a failed method to offer Recovery but it is the actual reason for the deepening global Crisis, which has been pushing the citizens of Europe into ever-deepening poverty [13]. As the neoliberal side of the flow-charts shows [3], the vicious cycle triggered by cuts, austerity, privatisations, declining wages and the missing taxes that the rich refuse to pay, is further deepened by the resulting poverty of the 99%, by the soaring unemployment, the vast amount of labour outsourced to global markets, by the rapidly shrinking consumer demand as a result of the impoverished working class and disappearing middle class. These are the actual causes of the shrinking economy and increasing inequality, which will eventually erase the middle class and will leave all of us without jobs; either young or not, skilled or unskilled.

To demonstrate the “efficiency” of Miliband’s proposal from another perspective: if, for a miraculous reason several new jobs would pop into existence – defying the laws of macroeconomics that predict deepening crisis as the inevitable outcome of neoliberal economics – those diligent, worthy young jobseekers who would fill these new positions would still rely on benefits and income support, since the entry-level compensation – as per the accelerating neoliberal slavery-trend (workfare) to reduce wages to the level of no-payment (“zero-hour contracts”) – is rapidly converging to zero. Therefore, even if the trained and skilled part of the young would find new jobs, they would still need extra financial help to complement the ludicrously low wages in order to sustain their mental and physical condition to meet the challenges posed by the jobs in our uniquely competitive era.

The confessions of a gazillionaire

There is a curious case of a millionaire – one of the gazillionaires, as he introduced himself – who gave a series of presentations on the actual macroeconomic dynamics of job-creation versus the myths regarding the job-creating activities of the rich classes.

  • Rich people don’t create jobscustomer demand creates jobs – he tells us. And how to create and increase demand in an economy that is shrinking? His answer: “Taxing the rich, in order to make investments, to make the middle class grow and thrive is the single shrewdest thing we can do for the middle class, for the poor and … for the rich.” [4]

In his more recent speech [5] gazillionaire Hanauer emphasises the importance of raising the minimum wage and of keeping wages at a high standard as a primary factor of maintaining a thriving middle class, which in turn – as he correctly realises – is the basis of a strong economy.

The job of job-creation and the grand neoliberal enigma

political-cartoon-raising-taxes-exec-pay-money-bags-job-creator-funny-memeFollowing from above the next big question – sort of enigma – raised upon “socialist” Miliband’s Tory-proposal: who and how will create jobs for these skilled young people after they miraculously appear on the labour-market with a dandy student debt on their back large enough to be barely repayable throughout a lifetime?

The corporations won’t create new jobs – either for the young or for anyone else. Corporations don’t have the time and motivation to do so. Their lack of motivation is due to their global monopoly or oligopoly position, fixed wages and prices, and due to the lack of actual competition as the neoliberal flow-chart clearly demonstrates [3].

Rather than taking up the job of job-creation, the activities the rich individuals and corporations are engaging in:

  • – instead of creating jobs, killing jobs in massive quantities [15]
    – finding more outlandish ways to spend the vast amounts of predatory profits for the most obscene levels of luxuries [6]
    – finding more and more creative ways to evade taxes
    – discovering more and more regions to outsource labour to cheapest sweatshops
    – converting domestic workplaces into 3rd-world sweatshops
    – crafting and applying more and more fancy terms – workfare – to the modern slavery they impose on our societies
    – financing science and technology projects to robotise all jobs, thus eliminate human workforce altogether [7]
    – scolding those many millions whom they force to live on welfare [10]
    – finding more and more inventive ways to conspire against their own employees, including the top-skilled engineers [8]

Banks and Governments aren’t motivated to create jobs either. They don’t have to – they have their particularly devious ways [9, 10] to accumulate the wealth of the planet in their hands as one giant “free lunch”, without moving a little finger and without being held accountable for this ongoing scheme.

Middle- and small size businesses won’t create jobs either, simply because they are rapidly disappearing under the noliberal vicious-cycle affecting all segments of society. [2, 3, 14]

  • Altogether it seems, the leaders of Great Britain – including those allegedly representing the working classes – are waging a war against the youth of Great Britain, pushing them into a position of no jobs and no welfare.

The primary destructive driver: public debt

The ultimate factor driving our societies into mass-poverty and economic decline is the illegitimate public Debt [9, 10]. Without erasing these artificially generated burdens –  as Iceland did [16, 17] – and without erasing the de facto one-party neoliberal system imposing this burden, our societies will never see the day of actual Recovery.

Related Posts:

The Crisis-generating Austerity-Debt vicious cycle and the EU as catalyst of the cycle
https://globalpoliticalanalysis.wordpress.com/2013/11/29/the-eu-enforced-austerity-a-catalyst-of-the-deepening-crisis-in-europe/

References:

[1] Miliband: Young jobseekers must train or lose their benefits
http://www.independent.co.uk/news/uk/politics/miliband-young-jobseekers-must-train-or-lose-their-benefits-9546966.html

[2] The great austerity shell game
http://www.theguardian.com/commentisfree/2013/nov/04/great-austerity-shell-game

[3] Crisis versus Recovery flow-charts
https://globalpoliticalanalysis.files.wordpress.com/2013/11/crisis-vs-recovery-new.jpg

[4] Banned TED Talk: Nick Hanauer “Rich people don’t create jobs”
http://www.youtube.com/watch?v=CKCvf8E7V1g

[5] Nick Hanauer: Beware, fellow plutocrats, the pitchforks are coming
http://www.ted.com/talks/nick_hanauer_beware_fellow_plutocrats_the_pitchforks_are_coming?language=en#t-7205

[6] Making a splash! Banker builds lavish $1MILLION swimming pools shaped like a violin as water features become new status symbol of the rich and famous
http://www.dailymail.co.uk/news/article-2658390/Making-splash-Over-swimming-pools-new-status-symbol-rich-famous.html

[7] Billionaire Google CEO Thinks It Won’t Be So Bad When Robots Start Taking Our Jobs
http://www.huffingtonpost.com/2014/07/07/google-ceo-larry-page-part-time-jobs_n_5564044.html

[8] Apple, Google, Intel, Adobe Escape Cheaply From The Engineers’ Class Action Suit
http://www.forbes.com/sites/timworstall/2014/04/27/apple-google-intel-adobe-escape-cheaply-from-the-engineers-class-action-suit/

[9] The short story of how we are kept in odious Debt, Deficit, Crisis and Austerity
https://globalpoliticalanalysis.wordpress.com/2014/06/18/the-short-story-of-how-we-are-kept-in-odious-debt-deficit-crisis-and-austerity/

[10] The story of how we are being conned by Banks and Governments
https://globalpoliticalanalysis.wordpress.com/2014/04/21/lords-and-serfs-3-the-truth-is-out-money-is-just-an-iou-and-that-is-the-fraud/

[11] ‘I’ll govern like Tory leader Margaret Thatcher,’ says Ed ‘Red’ Miliband
http://www.express.co.uk/news/uk/459097/I-ll-govern-like-Tory-leader-Margaret-Thatcher-says-Ed-Red-Miliband

[12] Miliband in English devolution vow
http://www.dailymail.co.uk/wires/pa/article-2815150/Miliband-English-devolution-vow.html

[13] Austerity and Poverty in the European Union
http://bruegel.org/2014/09/austerity-and-poverty-in-the-european-union/
Full text: http://bruegel.org/wp-content/uploads/imported/publications/IPOL_STU_2014_518758_EN.pdf

[14] The Genocidal Global Politics and Neoliberalism
http://www.fatih.edu.tr/~jesr/Neoliberalism.pdf

[15] The 10 biggest corporate layoffs of the past two decades
http://fortune.com/2015/09/20/biggest-corporate-layoffs/

[16] Icelandic People Said No
http://www.youtube.com/watch?v=TjyuPRIoCeE

[17] Icelanders Overthrow Government and Rewrite Constitution After Banking Fraud-No Word From US Media
http://guardianlv.com/2013/12/icelanders-overthrow-government-and-rewrite-constitution-after-banking-fraud-no-word-from-us-media/

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About Sky Wanderer

Global Political Analysis, Research & Commentary. Multidisciplinary research and analysis revealing the big picture of the global status quo versus the mainstream myths. Searching the way out of the global financial tyranny and slavery, before the system ends up in a full-blown version of global fascism.

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