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Showing posts with label corporation. Show all posts
Showing posts with label corporation. Show all posts

Thursday 14 February 2013

When did being lowly paid become a criminal offence?



Increasingly, corporations and politicians treat the poor with distrust. That's why this week's ruling on workfare was important
Matt Kenyon 14022013
‘In the ruling in favour of Cait Reilly and Jamieson Wilson the judges were clear: these people were treated dishonestly.' Illustration by Matt Kenyon

Inside Amazon's flagship factory in Rugeley, Staffordshire, a new way of working is evolving. There is a strong topnote of distrust, evinced by the full-body scanners that workers have to pass, every time they leave, to prove they haven't stolen anything. The profound insecurity built into the employment model is dressed up as discipline – which is to say, Amazon expects huge seasonal fluctuations in the number of people it needs, yet likes to mask their dismissals behind a misdeameanour, so a lot of people get axed for crimes like being ill. There's a lifesized blonde lady made of cardboard at the entrance, with a think bubble coming out of her head that says, "This is the best job I've ever had!" If that detail alone is enough to make your blood run cold, marry it to the testimony of the chairman of nearby Lea Hall Miners Welfare Centre and Social Club: "The feedback we're getting is that it's like being in a slave camp."

Of all the details revealed by the Financial Times, the one that sank my spirits was the electronic tagging – workers have a handheld device directing them to goods. But these devices also measure their productivity in real time. If they lag behind, the machine bugs them. They are issued with constant warnings not to talk to one another or tarry for any reason. A lot of people find it quite stressful. Call them crazy. (Amazon counters: "Like most companies, we have performance expectations for every Amazon employee, and we measure actual performance against those expectations.")

Meanwhile, in Tesco's Donabate distribution centre in Dublin, workers wearing these tags are awarded percentages for their speediness (100% if they perform a task in the time estimated, 200% if they're twice as fast, and so on), but claim they are docked if they take a loo break; afterwards, they find they have to work much faster – to get back up to their 100%. To put it in context, workers routinely scoring 110% are reported to be sweating quite hard for most of the day. So making up your targets is no walk in the park. Tesco insists that their tag is turned off while workers are in the toilet.

Anybody who's ever worked in a very repetitive, menial job will recognise this suspicious atmosphere – the less enjoyable a job is, the more people there are who suspect you of trying to get out of it. That's reasonable, I suppose, though if people were treated less like robots to begin with, they might not need so much surveillance. But the fabled "innovation" of the private sector never seems to be able to extend itself towards making jobs more self-determining and satisfying. Presumably this is because there's always a danger that self-determining, satisfied people might distinguish themselves in some way, might cease to be interchangeable and might want – indeed, deserve – more than the paltry wage they might be being paid.

But there is innovation here, in a new shamelessness. Let's be honest, tagging is what you do to criminals. Criminals often don't mind this, because the alternative for them is prison. The understanding, however, is that there's already been a significant breakdown of respect between the authority and the person before anybody's movements are electronically monitored. It used to be taken as read that you wouldn't do that to a person until you already had good reason to suspect that they wouldn't tell you the truth.

I am reminded here of the Conservative MP Alec Shelbrooke calling for people's benefits to be delivered on a card, rather than cash, for the easier prohibition of the purchase of booze, fags, Sky+ and trips to Tenerife. Again, the government has form with this idea –certain categories of asylum seeker are given their sustenance on a card, with which they are banned from buying condoms and (obscurely) sanitary products.

A friend of mine stood behind an asylum seeker once while she was turned down for the purchase of some crayons. It's not a system I'd want on my conscience, but its development has some deterrence rationale to it: that is, to make conditions so unpleasant that the bogus claimant gives up of his or her own accord. So when did that become OK – to exclude benefit claimants from the mainstream economy, to humiliate them? Does Shelbrooke hope to deter them all from living here? Where does he propose they go?

What I cannot help noticing is a failure of normal human respect for the people at the bottom of the heap – Tuesday's ruling in favour of Cait Reilly and Jamieson Wilson has had its bones picked over for what it does or doesn't say about slavery, and yet the judges were clear: these people were treated dishonestly. They were treated as though, being unemployed, they could be parcelled about at the whim of the secretary of state.
A similar belief pervades the suggestion that those on benefits need to be ritually humiliated every time they go into a shop; or those on low wages, by dint of their low status, need to be monitored like criminals. Across the piece, having a low financial status is now elided, by politicians and by corporations, with being untrustworthy.

They may have different motives; Shelbrooke is hoping to make political capital out of the contempt in which he holds the poor; Tesco and Amazon's contempt is just a byproduct of their drive for profit. But the wellspring doesn't matter; what matters is that this is a frighteningly divisive worldview.

Tuesday 30 October 2012

When corporations bankroll politics, we all pay the price



Letting taxpayers fund parties directly could revive our rotten system – and at £1 per elector, it would be cheaper too
Illustration: Daniel Pudles
‘Despite attempts to reform it, US campaign finance is more corrupt and corrupting than it has been for decades.' Illustration: Daniel Pudles
It's a revolting spectacle: the two presidential candidates engaged in a frantic and demeaning scramble for money. By 6 November, Barack Obama and Mitt Romney will each have raised more than $1bn. Other groups have already spent a further billion. Every election costs more than the one before; every election, as a result, drags the United States deeper into cronyism and corruption. Whichever candidate takes the most votes, it's the money that wins.
Is it conceivable, for instance, that Romney, whose top five donors are all Wall Street banks, would put the financial sector back in its cage? Or that Obama, who has received $700,000 from both Microsoft and Google, would challenge their monopolistic powers? Or, in the Senate, that the leading climate change denier James Inhofe, whose biggest donors are fossil fuel companies, could change his views, even when confronted by an overwhelming weight of evidence? The US feeding frenzy shows how the safeguards and structures of a nominal democracy can remain in place while the system they define mutates into plutocracy.
Despite perpetual attempts to reform it, US campaign finance is now more corrupt and corrupting than it has been for decades. It is hard to see how it can be redeemed. If the corporate cronies and billionaires' bootlickers who currently hold office were to vote to change the system, they'd commit political suicide. What else, apart from the money they spend, would recommend them to the American people?
But we should see this system as a ghastly warning of what happens if a nation fails to purge the big money from politics. The British system, by comparison to the US one, looks almost cute. Total campaign spending in the last general election – by the parties, the candidates and independent groups – was £58m: about one sixtieth of the cost of the current presidential race. There's a cap on overall spending and tough restrictions on political advertising.
But it's still rotten. There is no limit on individual donations. In a system with low total budgets, this grants tremendous leverage to the richest donors. The political parties know that if they do anything that offends the interests of corporate power they jeopardise their prospects.
The solutions proposed by parliament would make our system a little less rotten. At the end of last year, the committee on standards in public life proposed that donationsshould be capped at an annual £10,000, the limits on campaign spending should be reduced, and public funding for political parties should be raised. Parties, it says, should receive a state subsidy based on the size of their vote at the last election.
The political process would still be dominated by people with plenty of disposable income. In the course of a five-year election cycle, a husband and wife would be allowed to donate, from the same bank account, £100,000. State funding pegged to votes at the last election favours the incumbent parties. It means that even when public support for a party has collapsed (think of the Liberal Democrats), it still receives a popularity bonus.
Even so, and despite their manifesto pledges, the three major parties have refused to accept the committee's findings. The excuse all of them use is that the state cannot afford more funding for political parties. This is a ridiculous objection. The money required is scarcely a rounding error in national accounts. It probably represents less than we pay every day for the crony capitalism the present system encourages: the unnecessary spending on private finance initiative projects, on roads to nowhere, on theTrident programme and all the rest, whose primary purpose is to keep the 1% sweet. The overall cost of our suborned political process is incalculable: a corrupt and inefficient economy, and a political system engineered to meet not the needs of the electorate, but the demands of big business and billionaires.
I would go much further than the parliamentary committee. This, I think, is what a democratic funding system would look like: each party would be able to charge the same, modest fee for membership (perhaps £50). It would then receive matching funding from the state, as a multiple of its membership receipts. There would be no other sources of income. (This formula would make brokerage by trade unions redundant.)
This system, I believe, would not only clean up politics, it would also force parties to re-engage with the public. It would oblige them to be more entrepreneurial in raising their membership, and therefore their democratic legitimacy. It creates an incentive for voters to join a party and to begin, once more, to participate in politics.
The cost to the public would be perhaps £50m a year, or a little more than £1 per elector: three times the price of a telephone vote on The X Factor. This, on the scale of state expenditure, is microscopic.
Politicians and the tabloid press would complain bitterly about this system, claiming, as they already do, that taxpayers cannot afford to fund politics. But when you look at how the appeasement of the banking sector has ruined the economy, at how corporate muscle prevents action from being taken on climate change, at the economic and political distortions caused by the system of crony capitalism, and at the hideous example on the other side of the Atlantic, you discover that we can't afford not to.

Monday 20 February 2012

India's elite is blinded by a cultish belief in progress

Rather than emulate US swagger, my home country should learn a lesson from America's current jobs crisis
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Prosperity for some: a man cycles past offices near New Delhi. Photograph: Manpreet Romana/AFP/Getty Images
 
From 2007 to 2009, during the process of gathering material for a non-fiction book on India, I often found myself exposed to the aspirations of its upper and middle classes. These people were part of the 150 or 200 million who had done very well materially from the economic changes of the past two decades, and as a group they believed firmly in India as a superpower on a path of infinite growth.

The people I met ranged from extremely wealthy businessmen, part of a super-elite, to the salaried middle classes. When I encountered them as individuals, usually in extended sessions, they often showed themselves capable of nuance and even outright contradiction, from the government official who expressed understanding for ultra-left guerrillas fighting the government and mining corporations in central India to the waitress at an upscale Delhi restaurant who wished, despite her apparent upward mobility, to have her mother's less affluent but stable life as a provincial schoolteacher.

But what was apparent in my long conversations with individuals was hardly ever true in the aggregate. In the public discourse produced by the upper and middle classes in India – in newspapers and talk shows, in tweets and television soaps, in the comments that flood websites should anyone dare make a dissenting note – such contradictions vanish, replaced by an uncomplicated, almost cultish faith in India as a success story. In this version of contemporary India, the material wealth of the upper and middle classes can only keep on increasing. The comfortable will get rich, the rich get richer. As for the poor living on 50 cents a day (perhaps as much as 77% of the entire population, according to one government report), they might see their lot improve. If not, they have only their lack of ability, effort and merit to blame.

In fact, when a series of scandals exploded in 2010, the elite response involved fixating on the corruption of government and politicians. It is true that both government officials and politicians were involved in the scandals, which included the shoddy construction of buildings for the Commonwealth Games and the irregularities involved in auctioning off the mobile phone spectrum that may have cost the public exchequer $39bn. But although corporations and the media were quite complicit in such corruption, as evident from the last of the 2010 scandals, which involved the income tax department's wiretaps on a British-Indian corporate lobbyist called Niira Radia, their role vanished in the anti-corruption movement led by Anna Hazare last year.

Along with the corporations and the media, India's middle and upper classes were particularly eager supporters of Hazare, a former soldier and social reformer whose primary demand was for the creation of a Jan Lokpal, a tribunal that would have policing powers over the government and legislature. When rallying behind Hazare, elite Indians did not raise questions about inequality, in the way their country lags behind other poor countries in many social indicators, including the child mortality rate, underweight children and female youth literacy, or how large sections of the population from Kashmiris in the north to tribal people in the central Indian state of Chhattisgarh feel the state as nothing but an oppressive presence.

Those supporting the Hazare movement seemed unconcerned with such things, instead focusing on government corruption as all that stood between their present wellbeing and future prosperity. If only the corrupt state would step aside in certain areas – obviously not Kashmir, Chhattisgarh or the north-east – the Indian elites could prosper even further.

The Hazare movement has since petered out, but its central idea, of the unique meritoriousness of the middle and upper classes of India, remains. It is an illusion, and it reminds me of the illusion among the middle and upper classes of another society, and that is the US. I live and teach in New York, where I've seen among my students (mostly white, just as elites in India tend to be mostly upper caste) and in the Occupy Wall Street movement an elite that has suddenly been forced to examine its notions of unique meritoriousness and endless prosperity.

The lack of jobs in the US, something that earlier affected only those in manufacturing and the service industry, and therefore had an impact mostly on inner city African Americans, poor immigrants and rural whites, has now worked its way into the lives of the middle and upper classes, towards even people with expensive college degrees.

In the conversations I've had with members of this American middle class, I've been privy to another reality behind their seemingly affluent facades. I teach writing, and so I've read, with surprise, about a student whose past consisted of private school education, a large suburban house, well-paid professional parents, and global travel, but whose parents are now unemployed, their large house caught up in endless mortgage payments, and where, along with attending classes, it is equally important for this student to scrounge for a subway card and food. It's not just the young who are afflicted, either. On New Year's Eve, an old friend of mine showed me around the house he'd fixed up painstakingly over the years. He now plans to sell it off because, in spite of having a steady job, he can no longer keep up with the mortgage payments.

It's painful to see people struggling with such hopelessness. Yet I can't help but note that it's allowed a significant portion of Americans to shed their shell of complacency, their belief that they must continue to prosper because they are deserving and that the world of the marketplace will always deal them a fair hand. In India, the elites shout themselves hoarse about emulating America – in its wealth, its swaggering confidence, its Hummers and parking lots – even as that America ceases to exist. Even in the land of manifest destiny, destiny has run into its limits, and it seems only a matter of time before the same turns out to be true for India's privileged classes.

Monday 19 December 2011

'Freedom' an instrument of oppression

This bastardised libertarianism makes 'freedom' an instrument of oppression

It's the disguise used by those who wish to exploit without restraint, denying the need for the state to protect the 99%
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Illustration by Daniel Pudles

Freedom: who could object? Yet this word is now used to justify a thousand forms of exploitation. Throughout the rightwing press and blogosphere, among thinktanks and governments, the word excuses every assault on the lives of the poor, every form of inequality and intrusion to which the 1% subject us. How did libertarianism, once a noble impulse, become synonymous with injustice?

In the name of freedom – freedom from regulation – the banks were permitted to wreck the economy. In the name of freedom, taxes for the super-rich are cut. In the name of freedom, companies lobby to drop the minimum wage and raise working hours. In the same cause, US insurers lobby Congress to thwart effective public healthcare; the government rips up our planning laws; big business trashes the biosphere. This is the freedom of the powerful to exploit the weak, the rich to exploit the poor.

Rightwing libertarianism recognises few legitimate constraints on the power to act, regardless of the impact on the lives of others. In the UK it is forcefully promoted by groups like the TaxPayers' Alliance, the Adam Smith Institute, the Institute of Economic Affairs, and Policy Exchange. Their concept of freedom looks to me like nothing but a justification for greed.

So why have we been been so slow to challenge this concept of liberty? I believe that one of the reasons is as follows. The great political conflict of our age – between neocons and the millionaires and corporations they support on one side, and social justice campaigners and environmentalists on the other – has been mischaracterised as a clash between negative and positive freedoms. These freedoms were most clearly defined by Isaiah Berlin in his essay of 1958, Two Concepts of Liberty. It is a work of beauty: reading it is like listening to a gloriously crafted piece of music. I will try not to mangle it too badly.

Put briefly and crudely, negative freedom is the freedom to be or to act without interference from other people. Positive freedom is freedom from inhibition: it's the power gained by transcending social or psychological constraints. Berlin explained how positive freedom had been abused by tyrannies, particularly by the Soviet Union. It portrayed its brutal governance as the empowerment of the people, who could achieve a higher freedom by subordinating themselves to a collective single will.

Rightwing libertarians claim that greens and social justice campaigners are closet communists trying to resurrect Soviet conceptions of positive freedom. In reality, the battle mostly consists of a clash between negative freedoms.

As Berlin noted: "No man's activity is so completely private as never to obstruct the lives of others in any way. 'Freedom for the pike is death for the minnows'." So, he argued, some people's freedom must sometimes be curtailed "to secure the freedom of others". In other words, your freedom to swing your fist ends where my nose begins. The negative freedom not to have our noses punched is the freedom that green and social justice campaigns, exemplified by the Occupy movement, exist to defend.

Berlin also shows that freedom can intrude on other values, such as justice, equality or human happiness. "If the liberty of myself or my class or nation depends on the misery of a number of other human beings, the system which promotes this is unjust and immoral." It follows that the state should impose legal restraints on freedoms that interfere with other people's freedoms – or on freedoms which conflict with justice and humanity.

These conflicts of negative freedom were summarised in one of the greatest poems of the 19th century, which could be seen as the founding document of British environmentalism. In The Fallen Elm, John Clare describes the felling of the tree he loved, presumably by his landlord, that grew beside his home. "Self-interest saw thee stand in freedom's ways / So thy old shadow must a tyrant be. / Thou'st heard the knave, abusing those in power, / Bawl freedom loud and then oppress the free."

The landlord was exercising his freedom to cut the tree down. In doing so, he was intruding on Clare's freedom to delight in the tree, whose existence enhanced his life. The landlord justifies this destruction by characterising the tree as an impediment to freedom – his freedom, which he conflates with the general liberty of humankind. Without the involvement of the state (which today might take the form of a tree preservation order) the powerful man could trample the pleasures of the powerless man. Clare then compares the felling of the tree with further intrusions on his liberty. "Such was thy ruin, music-making elm; / The right of freedom was to injure thine: / As thou wert served, so would they overwhelm / In freedom's name the little that is mine."

But rightwing libertarians do not recognise this conflict. They speak, like Clare's landlord, as if the same freedom affects everybody in the same way. They assert their freedom to pollute, exploit, even – among the gun nuts – to kill, as if these were fundamental human rights. They characterise any attempt to restrain them as tyranny. They refuse to see that there is a clash between the freedom of the pike and the freedom of the minnow.

Last week, on an internet radio channel called The Fifth Column, I debated climate change with Claire Fox of the Institute of Ideas, one of the rightwing libertarian groups that rose from the ashes of the Revolutionary Communist party. Fox is a feared interrogator on the BBC show The Moral Maze. Yet when I asked her a simple question – "do you accept that some people's freedoms intrude upon other people's freedoms?" – I saw an ideology shatter like a windscreen. I used the example of a Romanian lead-smelting plant I had visited in 2000, whose freedom to pollute is shortening the lives of its neighbours. Surely the plant should be regulated in order to enhance the negative freedoms – freedom from pollution, freedom from poisoning – of its neighbours? She tried several times to answer it, but nothing coherent emerged which would not send her crashing through the mirror of her philosophy.

Modern libertarianism is the disguise adopted by those who wish to exploit without restraint. It pretends that only the state intrudes on our liberties. It ignores the role of banks, corporations and the rich in making us less free. It denies the need for the state to curb them in order to protect the freedoms of weaker people. This bastardised, one-eyed philosophy is a con trick, whose promoters attempt to wrongfoot justice by pitching it against liberty. By this means they have turned "freedom" into an instrument of oppression.

Tuesday 4 October 2011

Osborne, cut these items to reduce deficit

Bins, roads, unwinnable wars: this is a chancellor with money to burn

While the poor struggle to survive the crisis, George Osborne is happy to run a welfare state for corporations and billionaires
  • daniel pudles
    Illustration by Daniel Pudles

    Crisis, what crisis? There must be one: George Osborne, chancellor of the exchequer, said so 12 times in Monday's speech. But if it really is as bad as he says, why is he squandering what remains of our money like an aristocratic gambler in a Russian novel?

    This column is about the cuts the government has failed to make. It's about the profligate, pointless spending that has not been slashed, and the money Osborne could have raised but has instead decided to fritter away. For the sake of argument it accepts his estimate of the amount that will need to be saved. But it will show that over half of it could be found with much less pain.
    Let us begin with the easiest cut of all: one that would hurt no one except a few grasping corporations.
    By cancelling its planned re-organisation of the National Health Service, the government would save £2bn. That would allow it to drop three-quarters of the cuts to the NHS's capital spending budget planned for the next four years.

    To show how reasonable I mean to be, I won't adopt Simon Jenkins's arresting proposal that we cut the entire armed forces' budget. I'll suggest we drop only the military projects of such withering pointlessness that even the government can't decide what they are for.

    The strategic purpose of the war in Afghanistan changes by the week. Its prospects of achieving any of its fluctuating aims recede by the day. Pulling out would save us £4.5bn a year. That's equivalent to the entire cut in the government grant to local authorities, plus the entire cut to the housing budget, which will raise social rents to impossible levels. So here's the choice: Sure Start centres, libraries, Citizens Advice bureaux, affordable housing, all the other services that give the poor a chance of a decent life; or an unwinnable war likely to sow further conflict.

    Whatever else the Ministry of Defence gets wrong, however, you can't fault it for innovation. It's spending £6.2bn on a pair of aircraft carriers with a unique feature: they won't carry any aircraft. The jets they were to have supported won't be ready in time, or perhaps at all. They will drift around the oceans like the Flying Dutchman, the embodied ghosts of our imperial pretensions. Because of the commitments already made, cancelling them now would save only £1.2bn. But that's enough to avert all but £200m of the government's cuts to early intervention programmes for families that might otherwise run into trouble.

    While we're on the subject of pointless foreign intervention, could someone in government please explain the survival of the export credit guarantee department? Its purpose is to subsidise multinational companies by underwriting their business in other countries: such as drilling for oil in fragile environments or selling weapons to dodgy regimes. It costs the government £20m a year. This money could have saved the Sustainable Development Commission and the Royal Commission on Environmental Pollution four times over.

    The road schemes the government wants to fund would have been pointless and destructive in the boom years. In a time of crisis and contraction, they are a refined form of madness. A report by the Campaign for Better Transport analyses the local authority transport schemes listed as the "best and final bids" for new money by the government, which will decide in December. You have until 14 October to respond.

    Though it generates the least employment, does the greatest damage to the environment and creates the fewest social benefits, road building is in line for the greatest share of the new transport spending: £897m. Some of the schemes being proposed, such as the £86m Bexhill to Hastings link road (all of 6km) or the £108m Kingskerswell bypass (also 6km) have been fought by local people for years. Like the useless new roads the last Tory government built, they will simply bump the traffic problem along to the next bottleneck. The same money would have kept the education maintenance allowance afloat for 18 months – or, as we're talking about transport, provided mobility for disabled people in residential care (one of the cruellest of the proposed cuts) for 300 years.

    The Beast of Brentwood, known to his mother as Eric Pickles, has insisted – on the expert advice of the leader writers of the Daily Mail – that councils reinstate weekly bin collections, at a cost of £250m. This spending, unlike some of the examples I'm listing, will do no harm. But a government that believes it's a higher priority than, say, legal aid for people with no representation (now cut by £300m a year) is a government that's lost all sense of proportion.

    Such sums are trifling by comparison with the money the government has selflessly foregone. Wherever it has spotted a relatively painless means of plugging the spending gap, it has hurried away to find an excruciating alternative. It continues to hold out against a Robin Hood tax on financial transactions. Levied at just 0.05%, this would raise around £20bn a year from the people who brought us the crisis. That's equivalent to one quarter of all the cuts the government is making.
    When he slapped new charges on the North Sea companies making tanker-loads of money from a mineral resource that belongs to the nation, Osborne could have banked the £2bn he raised. He could have used the oil revenues to cancel almost all the cuts to disability living allowance. Instead he gave it, as a tax rebate, to a group some way from the top of the priority list: motorists. When he struck a deal with Switzerland, and British tax evaders stashing their ill-gotten gains in its banks, Osborne could have held out for £25bn. Instead he settled for £5bn, all malfeasance forgotten. He threw away the equivalent of another quarter of this year's cuts.

    Then there are the straight giveaways: acts of profligacy at any time, of Bullingdonian debauchery today. The government's cuts to corporation tax will cost us £1bn a year by 2014. Changes to controlled foreign company rules, capital gains tax, capital allowances, inheritance tax and similar levies (all of which reward only corporations or the ultra-rich) will deprive the exchequer of a further £1.5bn a year by 2015 – almost enough to reverse the fiscally destructive cuts to the tax collection service: a net £2.3bn. The freezing of air passenger duty, excise duty for lorries and the aggregates levy – which in all cases, like the spending on new roads, damages the environment as much as they damage the economy – will cost us another £175m.

    Far from running out of funds, this looks like a government with money to burn. While the poor and middle struggle to survive the crisis that George Osborne bewails, he's giving away our money to those who need it least. So let's support him when he calls for cuts, but demand that he directs them at the welfare state he's running for corporations and billionaires, which is turning this crisis into a calamity.