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Showing posts with label exploit. Show all posts
Showing posts with label exploit. Show all posts
Friday 7 April 2023
Sunday 24 December 2017
Who pays for Manchester City’s beautiful game?
Nick Cohen in The Guardian
Even though I come from the red side of Manchester, I want Manchester City to win every game they play now. Hoping City fail is like hoping a great singer’s voice cracks or prima ballerina’s tendons tear. Journalists have written and broadcast millions of words about the intensity of Manchester City’s game and the beauty of its movement. You watch and gasp as each perfect pass finds its man and each impossible move becomes possible after all.
Everything that can be said should have been said. But here are words you never hear on the BBC or Sky and hear only rarely from the best sports writers. Manchester City’s success is built on the labour extracted by the rulers of a modern feudal state. Sheikh Mansour, its owner, is the half-brother of Sheikh Khalifa, the absolute monarch of the United Arab Emirates: an accident of birth that has given him a mountain of cash and Manchester City the Premier League’s best players.
An absolute monarchy is merely a dictatorship decked in fine robes. The usual restrictions of free speech, a free press, the rule of law, an independent judiciary and democratic elections still apply in the Emirates federation of seven sultanates. Critics are as likely to disappear or be held without due process as they are in less glamorous destinations. The riches that supply Pep Guardiola’s £15m salary and ensure the £264m wage bill for the players is met on time do not just come from oil. The Emirate monarchies, Qatar and Saudi Arabia rely on a system of economic exploitation you struggle to find a precedent for.
In the UAE as a whole, only 13% of the population are full nationals. In the glittering tourist resort of Dubai, citizenship rises slightly to 15% and in the Abu Dhabi emirate to 20%, but everywhere a subclass of immigrants does the bulk of the work. The obvious comparison is with apartheid: Arab nationals sit at the top, white expats have some privileges, as the coloureds and Asians had in the last days of the South African regime, while the dirty work – from construction to cleaning – is done by despised immigrants from south Asia.
But comparisons with apartheid or the Israeli occupation of the West Bank or America’s old deep south miscarry because the Arab princelings import their working class rather than rule over subdued inhabitants. It’s like Spartans bringing in Helots. Or if images of stern Spartan militarists feel incongruous when imposed on the flabby bodies of Gulf aristocrats, Eloi importing Morlocks. Timid labour reforms are meant to have improved the lot of the serfs. In law, employers can no longer keep them in line with the threat of deportation to India or the Philippines if they do not please a capricious boss. In practice, absolute monarchies repress the lawyers and campaigners who might take up their cases. Now, as always, activists are silenced and workers fear the cost of speaking out.
You should be able to praise Manchester City’s football and condemn it owners. Or, if that is asking too much, you should at least be able to talk about its owners or mention the source of their wealth. If only in passing. If only the once. Instead, there is silence. With Mansour building a global consortium of clubs, Qataris owning Paris Saint-Germain and Emirate money poised to buy Newcastle United, rich dictatorial states are engaging in competitive conspicuous consumption. They are creating the world’s best clubs and may one day take them off into an oligarchs’ league. You are not “bringing politics into football” when you worry about Sheikh Mansour. You are recognising that the future of football is political.
The silence about the fate of the national game covers much of national life. Everywhere you look, you are struck by the arguments that are not being made.
Mainstream Conservatives refuse to join Tory rebels in speaking out against the dangers of Brexit. They like to boast that they are stable and commonsensical types, with no time for dangerous experiments. When confronted with the reckless nationalism of the Tory right, however, they prefer the safe option of keeping quiet until public opinion shifts. Many Labour MPs and leftwing journalists deplore Corbyn and the far left. I speak from experience when I say they talk with great eloquence in private, but will not utter a squeak of dissent in public until Corbyn’s popularity among party members falls. They, too, will speak out when, and only when, they can be certain that it is too late for speaking out to make a difference.
We think of ourselves as more liberated than our ancestors, but the same repressive mechanisms silence us. In the 18th and 19th centuries, few wanted to say that gorgeous stately homes and fine public buildings had been built because the British looted Indians and enslaved Africans. Today, it feels equally “inappropriate” – to use a modern word that stinks of Victorian prudery – to say that a beautiful football club has been built on the proceeds of exploitation.
Football supporters reserve their hatred for owners such as the Glazers, who bought Manchester United with borrowed money and siphoned off the club’s profits to pay down the debt. If billions are available to turn Manchester City or Paris Saint-Germain into world-class clubs, the fans do not care where the money came from. Nor do neutrals who love football for its own sake. For them, it is as miserablist to talk about Manchester City’s owners on Match of the Day as to talk about the factory farming of turkeys at the Christmas lunch table.
Honest sports writers fear the accusation that they are joyless puritan nags whose sole pleasure is ruining the pleasure of others. In Britain’s vacuous politics, Conservatives fear accusations of ignoring the will of the people on Brexit. Labour MPs fear their activists rather than their voters. In both the Tory and Labour cases, the worst that can happen to MPs is deselection. Mail or Express journalists who came out against Brexit would, I imagine, risk their jobs or being moved on to a different story. But no leftwing paper would sack a columnist who criticised Corbyn. The worst they would endure is frosty words from line managers and twaddle on Twitter.
We do not live in Abu Dhabi. The police do not pick up dissidents. Jailers don’t torture them. Yet peer pressure and trivial fears are enough to suppress necessary arguments. If you do not yet have a New Year resolution, it’s worth resolving to treat both with the contempt they deserve.
Wednesday 5 April 2017
Freedom for whom, at whose expense?
George Monbiot in The Guardian
‘When thinktanks and the billionaire press call for freedom, they are careful not to specify whose freedoms they mean. Freedom for some, they suggest, means freedom for all.’ Photograph: Dan Kitwood/Getty Images
Propaganda works by sanctifying a single value, such as faith, or patriotism. Anyone who questions it puts themselves outside the circle of respectable opinion. The sacred value is used to obscure the intentions of those who champion it. Today, the value is freedom. Freedom is a word that powerful people use to shut down thought.
When thinktanks and the billionaire press call for freedom, they are careful not to specify whose freedoms they mean. Freedom for some, they suggest, means freedom for all. In certain cases, this is true. You can exercise freedom of thought, for instance, without harming others. In other cases, one person’s freedom is another’s captivity.
When corporations free themselves from trade unions, they curtail the freedoms of their workers. When the very rich free themselves from tax, other people suffer through failing public services. When financiers are free to design exotic financial instruments, the rest of us pay for the crises they cause.
Above all, billionaires and the organisations they run demand freedom from something they call “red tape”. What they mean by red tape is public protection. An article in the Telegraph last week was headlined “Cut the EU red tape choking Britain after Brexit to set the country free from the shackles of Brussels”. Yes, we are choking, but not on red tape. We are choking because the government flouts European rules on air quality. The resulting air pollution frees thousands of souls from their bodies.
As if to hammer the point home, the Sunday Telegraph interviewed Nick Varney, chief executive of Merlin Entertainments, in an article claiming that the “red tape burden” was too heavy for listed companies. He described some of the public protections that companies have to observe as “bloody baggage”. The article failed to connect these remarks to his company’s own bloody baggage, caused by its unilateral decision to cut red tape. As a result of overriding the safety mechanism on one of its rides at Alton Towers – which was operating, against the guidelines, during high winds – 16 people were injured, including two young women who had their legs amputated. That’s why we need public protections of the kind the Telegraph wants to destroy.
The same ethos, with the same justification, pervades the Trump administration. The new head of the environmental protection agency, Scott Pruitt, is seeking to annul the rules protecting rivers from pollution, workers from exposure to pesticides, and everyone from climate breakdown. It’s not as if the agency was overzealous before: one of the reasons for the mass poisoning in Flint, Michigan, was its catastrophic failure to protect people from the contamination of drinking water by lead: a failure that now afflicts 18 million Americans.
‘The new head of the US environmental protection agency is seeking to annul the rules protecting rivers from pollution, workers from exposure to pesticides and everyone from climate breakdown.’ Photograph: Alamy
‘When thinktanks and the billionaire press call for freedom, they are careful not to specify whose freedoms they mean. Freedom for some, they suggest, means freedom for all.’ Photograph: Dan Kitwood/Getty Images
Propaganda works by sanctifying a single value, such as faith, or patriotism. Anyone who questions it puts themselves outside the circle of respectable opinion. The sacred value is used to obscure the intentions of those who champion it. Today, the value is freedom. Freedom is a word that powerful people use to shut down thought.
When thinktanks and the billionaire press call for freedom, they are careful not to specify whose freedoms they mean. Freedom for some, they suggest, means freedom for all. In certain cases, this is true. You can exercise freedom of thought, for instance, without harming others. In other cases, one person’s freedom is another’s captivity.
When corporations free themselves from trade unions, they curtail the freedoms of their workers. When the very rich free themselves from tax, other people suffer through failing public services. When financiers are free to design exotic financial instruments, the rest of us pay for the crises they cause.
Above all, billionaires and the organisations they run demand freedom from something they call “red tape”. What they mean by red tape is public protection. An article in the Telegraph last week was headlined “Cut the EU red tape choking Britain after Brexit to set the country free from the shackles of Brussels”. Yes, we are choking, but not on red tape. We are choking because the government flouts European rules on air quality. The resulting air pollution frees thousands of souls from their bodies.
‘Yes, we are choking, but not on red tape. We are choking because the government flouts European rules on air quality.’ Photograph: Stefan Rousseau/PA
Ripping down such public protections means freedom for billionaires and corporations from the constraints of democracy. This is what Brexit – and Donald Trump – are all about. The freedom we were promised is the freedom of the very rich to exploit us.
To be fair to the Telegraph, which is running a campaign to deregulate the entire economy once Britain has left the EU, it is, unusually, almost explicit about who the beneficiaries are. It explains that “the ultimate goal of this whole process should be to … set the wealth creators free”. (Wealth creators: code for the very rich.) Among the potential prizes it lists are changes to the banana grading system, allowing strongly curved bananas to be categorised as Class 1, a return to incandescent lightbulbs and the freedom to kill great crested newts.
I suspect that the Barclay brothers, the billionaires who own the Telegraph, couldn’t give a monkey’s about bananas. But as their business empire incorporates hotels, shipping, car sales, home shopping and deliveries, they might be intensely interested in the European working time directive and other aspects of employment law, tax directives, environmental impact assessments, the consumer rights directive, maritime safety laws and a host of similar public protections.
If the government agrees to a “bonfire of red tape”, we would win bent bananas and newt-squashing prerogatives. On the other hand, we could lose our rights to fair employment, an enduring living world, clean air, clean water, public safety, consumer protection, functioning public services, and the other distinguishing features of civilisation. Tough choice, isn’t it?
The overriding of the safety mechanism on a ride at Alton Towers led to two young women having their legs amputated
To be fair to the Telegraph, which is running a campaign to deregulate the entire economy once Britain has left the EU, it is, unusually, almost explicit about who the beneficiaries are. It explains that “the ultimate goal of this whole process should be to … set the wealth creators free”. (Wealth creators: code for the very rich.) Among the potential prizes it lists are changes to the banana grading system, allowing strongly curved bananas to be categorised as Class 1, a return to incandescent lightbulbs and the freedom to kill great crested newts.
I suspect that the Barclay brothers, the billionaires who own the Telegraph, couldn’t give a monkey’s about bananas. But as their business empire incorporates hotels, shipping, car sales, home shopping and deliveries, they might be intensely interested in the European working time directive and other aspects of employment law, tax directives, environmental impact assessments, the consumer rights directive, maritime safety laws and a host of similar public protections.
If the government agrees to a “bonfire of red tape”, we would win bent bananas and newt-squashing prerogatives. On the other hand, we could lose our rights to fair employment, an enduring living world, clean air, clean water, public safety, consumer protection, functioning public services, and the other distinguishing features of civilisation. Tough choice, isn’t it?
The overriding of the safety mechanism on a ride at Alton Towers led to two young women having their legs amputated
As if to hammer the point home, the Sunday Telegraph interviewed Nick Varney, chief executive of Merlin Entertainments, in an article claiming that the “red tape burden” was too heavy for listed companies. He described some of the public protections that companies have to observe as “bloody baggage”. The article failed to connect these remarks to his company’s own bloody baggage, caused by its unilateral decision to cut red tape. As a result of overriding the safety mechanism on one of its rides at Alton Towers – which was operating, against the guidelines, during high winds – 16 people were injured, including two young women who had their legs amputated. That’s why we need public protections of the kind the Telegraph wants to destroy.
The same ethos, with the same justification, pervades the Trump administration. The new head of the environmental protection agency, Scott Pruitt, is seeking to annul the rules protecting rivers from pollution, workers from exposure to pesticides, and everyone from climate breakdown. It’s not as if the agency was overzealous before: one of the reasons for the mass poisoning in Flint, Michigan, was its catastrophic failure to protect people from the contamination of drinking water by lead: a failure that now afflicts 18 million Americans.
‘The new head of the US environmental protection agency is seeking to annul the rules protecting rivers from pollution, workers from exposure to pesticides and everyone from climate breakdown.’ Photograph: Alamy
As well as trying to dismantle the government’s climate change programme, Trump is waging war on even the most obscure forms of protection. For instance, he intends to remove funds from the tiny US chemical safety board, which investigates lethal industrial incidents. Discovering what happened and why would impede freedom.
On neither side of the Atlantic are these efforts unopposed. Trump’s assault on public protections has already provoked dozens of lawsuits. The European council has told the UK government that if it wants to trade with the EU on favourable terms after Brexit, companies here cannot cut their costs by dumping them on the rest of society.
This drives the leading Brexiters berserk. As a result of the pollution paradox (the dirtiest corporations have to spend the most money on politics, so the political system comes to be owned by them), politicians like Boris Johnson and Michael Gove have an incentive to champion the freedom of irresponsible companies. But it also puts them in a bind. Their primary argument for deregulation is that it makes businesses more competitive. If it means those businesses can’t trade with the EU, the case falls apart.
They will try to light the bonfire anyway, as this is a question of power and culture as well as money. You don’t need to listen for long to the very rich to realise that many see themselves as the “independents” Friedrich Hayek celebrated in The Constitution of Liberty, or as John Galt, who led a millionaires’ strike against the government in Ayn Rand’s novel, Atlas Shrugged. Like Hayek, they regard freedom from democracy as an absolute right, regardless of the costs this may inflict on others, or even themselves.
When we confront a system of propaganda, our first task is to decode it. This begins by interrogating its sacred value. Whenever we hear the word freedom, we should ask ourselves, “Freedom for whom, at whose expense?”
On neither side of the Atlantic are these efforts unopposed. Trump’s assault on public protections has already provoked dozens of lawsuits. The European council has told the UK government that if it wants to trade with the EU on favourable terms after Brexit, companies here cannot cut their costs by dumping them on the rest of society.
This drives the leading Brexiters berserk. As a result of the pollution paradox (the dirtiest corporations have to spend the most money on politics, so the political system comes to be owned by them), politicians like Boris Johnson and Michael Gove have an incentive to champion the freedom of irresponsible companies. But it also puts them in a bind. Their primary argument for deregulation is that it makes businesses more competitive. If it means those businesses can’t trade with the EU, the case falls apart.
They will try to light the bonfire anyway, as this is a question of power and culture as well as money. You don’t need to listen for long to the very rich to realise that many see themselves as the “independents” Friedrich Hayek celebrated in The Constitution of Liberty, or as John Galt, who led a millionaires’ strike against the government in Ayn Rand’s novel, Atlas Shrugged. Like Hayek, they regard freedom from democracy as an absolute right, regardless of the costs this may inflict on others, or even themselves.
When we confront a system of propaganda, our first task is to decode it. This begins by interrogating its sacred value. Whenever we hear the word freedom, we should ask ourselves, “Freedom for whom, at whose expense?”
Monday 19 December 2016
Don’t complain about the strikers – they’re only doing what we all should in 2017
Paul Mason in The Guardian
We seem to love the working class as long as it is a) white and b) passive. The real working class is neither. It is multi-ethnic and, from Southern Rail to British Airways, it is set to strike.
Predictably, the Conservatives are calling for more legal restrictions on strike action. Theresa May accused strikers of “contempt for ordinary people”. And – as always – the neck veins of TV reporters are bulging as they express outrage on behalf of those affected.
Union leader says No 10 demonising working people in strikes row
Yet, try as they might, the politicians and journalists have failed to stir up mob hatred against the strikers, some of whom – such as the Southern Rail drivers and guards – have been taking industrial action for weeks. And the reasons for this are obvious: they are ordinary people.
While the miners and steelworkers of the 1980s worked in relatively insular steel and mining towns, everybody knows a BA cabin steward, a train guard, a baggage handler or a Post Office counter worker. What’s more, because so much of our work has become modular, low-paid and deskilled, many people know, or can guess, exactly what they are going through.
We have near full employment yet near wage stagnation. The strikes taking place over Christmas are happening among workers who have not seen a pay rise for years. BA’s onboard customer service managers, for example, have been stripped of their union negotiation rights and had their pay frozen for six years.
One of the most pitiful things about the political class, and the economists who whisper certainties in their ear, is their distance from the actual experience of work. As trade union rights have become eroded throughout the private sector, and large chunks of the public sector become privatised, a culture of coercion has taken root at work.
A commuter protests in support of Southern Rail staff. at Victoria Station in London. Photograph: Andy Rain/EPA
It does not have to be as bad as the leading fast-food cafe chain where a secret shopper deducts the bonus of an entire shift if one person does not smile. But it is pervasive.
Generally, you are supposed to smile, supposed to exhibit happiness for your seven quid an hour, obey orders without question, to hit meaningless targets or scam them on the instruction of your line manager – and, increasingly, you’re supposed to pretend you are self-employed.
You can spend entire days, if you think about it, being served only by people with no actual employment status: the Uber driver, the hairdresser, the physiotherapist. Even businesses where you’re paying a limited company through your credit card now routinely require their “associates” to be self-empolyed.
The result looks like a fake-tan version of Downtown Abbey with all the same levels of deference but zero paternal responsibility. And deep down, people who work for a living understand the modern “contract” between worker and employer is barely worth the paper it is written on.
That’s why workers with union rights and relative job security use the strike weapon. It’s never pleasant. But every cabin worker at BA and Virgin knows that, without the unions, they would see their pension rights stolen and their conditions eroded to the same levels enjoyed by their counterparts at the budget airlines.
And what’s driving the attacks is always the same familiar, financial pressure. Public services, once privatised, are forced to enter a race to the bottom in terms of pay, conditions and pensions for their workers. Once financial logic overtakes the logic of providing a service as efficiently as possible, you get the stupidities of Southern Rail, which cut its services to passengers in order to provide itself with an achievable target.
Jeremy Corbyn has been condemned for failing to condemn the strikes – and for attending a Christmas party with the Aslef union. If it were up to me, Corbyn would actually throw a Christmas party, not just for the Aslef strikers but for all the workers toiling on basic pay, fictitious contracts and unachievable targets over the festive period.
Those of us in unions – and there are still millions of us – know they make a massive and positive difference. Because workers on London Underground are unionised, there is a guard at my local tube station who refuses to wear any other name badge than one with “Lenin” on it.
No 10 accuses striking workers of 'contempt for ordinary people'
Although I do not recommend this level of resistance for everybody, it is a physical symbol of the fact that unionised workers are people you do not mess around with.
The Southern strikers, the BA crews and the Post Office workers are showing a different side of what it means to express your collective identity at work. So did the junior doctors, whose determined action got them a better deal than their leaders originally thought they could achieve.
Coming on top of the strikes by Deliveroo riders and a union-led court victory for Uber drivers, these are signs that even the heavily casualised workforce of the 21st century will not suffer indignity for ever.
In economics, it has become common to hear that one of the main failings of the current system is wage stagnation; even the Bank of England would like to see more inflation. So don’t complain about the posties, train drivers, cabin crews and baggage handlers – they’re only doing what we all should in 2017.
Ask for a pay rise, defend your pension rights, insist that work conditions are respectful and safe – and demand your employer negotiates with a real trade union and pays the rate for the job.
We seem to love the working class as long as it is a) white and b) passive. The real working class is neither. It is multi-ethnic and, from Southern Rail to British Airways, it is set to strike.
Predictably, the Conservatives are calling for more legal restrictions on strike action. Theresa May accused strikers of “contempt for ordinary people”. And – as always – the neck veins of TV reporters are bulging as they express outrage on behalf of those affected.
Union leader says No 10 demonising working people in strikes row
Yet, try as they might, the politicians and journalists have failed to stir up mob hatred against the strikers, some of whom – such as the Southern Rail drivers and guards – have been taking industrial action for weeks. And the reasons for this are obvious: they are ordinary people.
While the miners and steelworkers of the 1980s worked in relatively insular steel and mining towns, everybody knows a BA cabin steward, a train guard, a baggage handler or a Post Office counter worker. What’s more, because so much of our work has become modular, low-paid and deskilled, many people know, or can guess, exactly what they are going through.
We have near full employment yet near wage stagnation. The strikes taking place over Christmas are happening among workers who have not seen a pay rise for years. BA’s onboard customer service managers, for example, have been stripped of their union negotiation rights and had their pay frozen for six years.
One of the most pitiful things about the political class, and the economists who whisper certainties in their ear, is their distance from the actual experience of work. As trade union rights have become eroded throughout the private sector, and large chunks of the public sector become privatised, a culture of coercion has taken root at work.
A commuter protests in support of Southern Rail staff. at Victoria Station in London. Photograph: Andy Rain/EPA
It does not have to be as bad as the leading fast-food cafe chain where a secret shopper deducts the bonus of an entire shift if one person does not smile. But it is pervasive.
Generally, you are supposed to smile, supposed to exhibit happiness for your seven quid an hour, obey orders without question, to hit meaningless targets or scam them on the instruction of your line manager – and, increasingly, you’re supposed to pretend you are self-employed.
You can spend entire days, if you think about it, being served only by people with no actual employment status: the Uber driver, the hairdresser, the physiotherapist. Even businesses where you’re paying a limited company through your credit card now routinely require their “associates” to be self-empolyed.
The result looks like a fake-tan version of Downtown Abbey with all the same levels of deference but zero paternal responsibility. And deep down, people who work for a living understand the modern “contract” between worker and employer is barely worth the paper it is written on.
That’s why workers with union rights and relative job security use the strike weapon. It’s never pleasant. But every cabin worker at BA and Virgin knows that, without the unions, they would see their pension rights stolen and their conditions eroded to the same levels enjoyed by their counterparts at the budget airlines.
And what’s driving the attacks is always the same familiar, financial pressure. Public services, once privatised, are forced to enter a race to the bottom in terms of pay, conditions and pensions for their workers. Once financial logic overtakes the logic of providing a service as efficiently as possible, you get the stupidities of Southern Rail, which cut its services to passengers in order to provide itself with an achievable target.
Jeremy Corbyn has been condemned for failing to condemn the strikes – and for attending a Christmas party with the Aslef union. If it were up to me, Corbyn would actually throw a Christmas party, not just for the Aslef strikers but for all the workers toiling on basic pay, fictitious contracts and unachievable targets over the festive period.
Those of us in unions – and there are still millions of us – know they make a massive and positive difference. Because workers on London Underground are unionised, there is a guard at my local tube station who refuses to wear any other name badge than one with “Lenin” on it.
No 10 accuses striking workers of 'contempt for ordinary people'
Although I do not recommend this level of resistance for everybody, it is a physical symbol of the fact that unionised workers are people you do not mess around with.
The Southern strikers, the BA crews and the Post Office workers are showing a different side of what it means to express your collective identity at work. So did the junior doctors, whose determined action got them a better deal than their leaders originally thought they could achieve.
Coming on top of the strikes by Deliveroo riders and a union-led court victory for Uber drivers, these are signs that even the heavily casualised workforce of the 21st century will not suffer indignity for ever.
In economics, it has become common to hear that one of the main failings of the current system is wage stagnation; even the Bank of England would like to see more inflation. So don’t complain about the posties, train drivers, cabin crews and baggage handlers – they’re only doing what we all should in 2017.
Ask for a pay rise, defend your pension rights, insist that work conditions are respectful and safe – and demand your employer negotiates with a real trade union and pays the rate for the job.
Friday 23 August 2013
Furniture stores used fake prices, says OFT
Six High Street furniture and carpet retailers have been accused of misleading their customers with fake prices.
The Office of Fair Trading (OFT) said the stores had all advertised price cuts which were not genuine.
In particular, they advertised reductions from previously higher prices, which tricked customers into thinking they were getting a bargain.
So far, none of the retailers involved has been named officially.
During its inquiries, the OFT said it found systematic examples of inflated "reference pricing".
That is where a retailer claims the price "was" £500, for example, and is "now" £300.
But the OFT said that in some cases, the stores under investigation had not sold a single product at the previous higher price.
On average, it found that 95% of sales were at the lower, or "now" price, suggesting the original prices were not genuine.
It also said the problem was "endemic" within the industry.
Fines
The OFT's investigation revealed that high reference prices can persuade people to buy goods when otherwise they would not.
"Reference pricing can mislead consumers into thinking the item they have bought is of higher value and quality," said Gaucho Rasmussen of the OFT.
It also puts consumers under pressure to buy immediately, and stops them hunting for better deals elsewhere.
"Buying an item immediately means they do not get the chance to search the market for the real best deals," said Mr Rasmussen.
The OFT has ordered the six to stop the practice of misleading pricing.
If they continue the habit, the OFT has the power to fine them up to 30% of their relevant turnover.
Consumers shopping this coming weekend are being advised to ask the shops how long reference prices were used for and what percentage of sales were achieved at the higher price.
'Genuine prices'
Earlier this week, Tesco was fined £300,000 for misleading customers over what it claimed were "half-price" strawberries.
The higher prices that the offer referred to, the "reference prices", had been available for just two weeks.
However, the lower price was available over several months.
Under the pricing practices guide, administered by the Department of Business, Innovation and Skills, the length of the new lower price sale should not be longer than the old higher price was available for.
The same guidelines also stipulate that "a previous price used as a reference price to make a price comparison should be a genuine retail price".
Under the Consumer Protection from Unfair Trading Regulations (CPRs) 2008, it is illegal to indulge in misleading or aggressive advertising.
Thursday 18 July 2013
The chimera of Dalit capitalism
NISSIM MANNATHUKKAREN
The recent launch of the first Dalit venture fund occasions an examination of the moral and ethical emptiness of capitalism
History shows that where ethics and economics come in conflict, victory is always with economics
B.R. Ambedkar
If only Milind Kamble, founder of the Dalit Indian Chamber of Commerce and Industry (DICCI) and Chandra Bhan Prasad, Dalit thinker, columnist and DICCI mentor, had imbibed the wisdom of Manning Marable’s How Capitalism Underdeveloped Black America, a classic work in African-American studies, they would not have been such virtuoso performers of the ballad of Dalit capitalism (which claims Black capitalism among its inspirations). And this ballad is increasingly getting mainstream attention as evidenced by the interview of the duo in a famous talk show after the recent launch of the first Dalit venture capital fund.
The fundamental argument made by them is that it is time for Dalits to change their image of being perpetual victims (always in need of state support through reservations and doles) to that of being in charge of their own destiny — to put it pithily, “Dalits are not only takers, they are givers.” And what better way to achieve this than Dalits becoming capitalists themselves, and welcoming with open arms, economic reforms and globalisation: “we see that there is an economic process, that capitalism is changing caste much faster than any human being. Therefore, in capitalism versus caste, there is a battle going on and Dalits should look at capitalism as a crusader against caste.”
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IN THE U.S.
It is, of course, understandable that an oppressed people would look to any and every avenue that would help overthrow the shackles of oppression. In that sense, the limited use of the market in dissolving some of the millennia-old feudal and caste hierarchies has to be acknowledged. But to move from that to romanticising the relationship between capitalism and caste is completely different, especially when it is done in an anodyne and vacuous manner as Prasad does: “along with globalisation came Adam Smith to challenge Manu. So that’s why for the first time, money has become bigger than caste... bigger than Marx, bigger than everybody because in this marketplace, only your ability is respected.” And “Montek [Singh Ahluwalia] is a friend of Adam Smith and Adam Smith is an enemy of Manu, so therefore, Montek is our friend.
If indeed the market is a level playing field, one wonders why is it that after centuries of glorious capitalist growth and decades of Black capitalism in the headquarters of world capitalism, African-Americans languish at the bottom of socio-economic indicators. In 2011, the poverty rate among blacks was 28.1 per cent, almost three times the rate for non-Hispanic whites. In the prison capital of the world, African-Americans are incarcerated at almost six times the rate of non-Hispanic whites, thus constituting almost a million out of a total prison population of 2.3 million! So much for a market place that respects one’s ability. If capitalism is so democratic and benign, why is it that its biggest crisis since the Great Depression — the financial crisis in 2008 — had a particularly devastating effect on the African-American population?
The Pew Research Center analysis shows that the median wealth of white households was a staggering 20 times that of black households in 2009. This was the largest gap in 25 years and almost twice the ratio before the crisis.
Despite the optimism that people like Prasad and Kamble exude about Dalits becoming equal participants in a democratic capitalism, there are other Dalit and non-Dalit scholars who have demonstrated the immense barriers for Dalit entrepreneurs within the so-called capitalist market, and the ugly casteism that marks corporate India.
But my concern is not about the inability of Dalits to become capitalists within a structure marked by gargantuan economic and social inequalities, but about the moral and ethical emptiness of capitalism as a liberatory mechanism for an oppressed people. When Chandra Bhan Prasad speaks in glowing terms about the four Mercedes Benz cars that Rajesh Saraiya, the richest Dalit businessman, worth about $400 million and based in Ukraine, owns, he does not ponder about the gross inequalities that characterise the global capitalist system which bestows such bounties on a minuscule number at the expense of the vast majority who inevitably pay the price.
THE FLAW
The fundamental flaw in the argument for Dalit capitalism is that it merely seeks to find an equal space for Dalits within what is inherently an exploitative system: thus the hitherto exploited sections of the people will now play the role of exploiters. In sum, Dalit capitalism, while it seeks to dismantle age-old hierarchies and discriminations, is hardly bothered about the new oppressions perpetrated by capitalism.
What is particularly shocking is that Dalit liberation seeks to join hands with capitalism at a juncture when it is at its carnivorous worst. The Golden Age of capitalism and industrialisation has given way to “casino capitalism,” driven by financial speculation and what Marx calls as “fictitious capital.” The greatest example of this is the crisis of 2008. In a desperate bid to sustain its profit margins, capitalism resorts to, in the words of distinguished professor of anthropology and geography David Harvey’s words, “accumulation by dispossession” — privatisation of public property, forcible expulsion of peasant and indigenous populations from their lands, unbridled exploitation of natural resources and so on.
Rather than grapple with the question of a comprehensive transformation of political, economic and cultural relations towards equality in society, Dalit capitalism ingratiates itself with the present exploitative order. There are no radical questions asked, like that of reparations for slavery in America (theHarper’s Magazine estimated the value of reparations to be over $100 trillion for forced labour from 1619 to 1865). Instead, Dalit capitalism becomes the new darling of mainstream media simply because it refuses to question the commonsense of market as the saviour. As a prominent columnist gushed about the Dalit venture capital fund: “This is a vision of shared equality among castes, not of trickle down. It is a vision of Dalit entrepreneurs taking their place at the top of the pyramid and offering to share their profits with investors from all castes that historically dominated them.”
Ultimately, what is most disturbing is that Dalit capitalism is mainly inspired by the “economic thought of Dr. Babasaheb Ambedkar”! The great man would definitely turn in his grave when he sees his followers seeking the liberation of his people through capitalism when global multinational capital is pillaging the Aymara people of Latin America for oil and minerals, and the Ethiopian peasants for land. In an interlinked world, the former’s destiny is irrevocably tied to the latter.
Tuesday 10 January 2012
The cost of our habits
By Ardeshir Ommani
Altria Group is the leading cigarette maker in the United States. The stock of the company rose 20% in 2011's depressed markets and it's up 50% over the past two years, nearly four times the market's average gain. About two weeks ago, the stock of the company, which is the parent of Philip Morris USA and that of the Marlboro brand hit a 52-week high of $36.40.
The rise in its stock price is influenced by the company's stable cash flow and a dividend yield of 5.5%. At the time when money market rates are less than 0.5%, and the 10-year Treasury is
yielding less than 2%, the stocks of Altria Group attracts all the attention of the investors who do not ask how many smokers would die this year because of addiction and succumbing to lung cancer. It is worth noting that on December 23, 2011, from Richmond, Virginia, Altria's operating companies launched "Citizens for Tobacco Rights", a nation-wide website to assist the tobacco companies in promoting lowering taxes on cigarette sales.
Although US cigarette sales have been in a severe long-term decline, to be exact, its shipments dropped by a third over the past 10 years, the industry has been able to offset the volume decline with increases in wholesale prices. Naturally after addicting a large segment of the youth around the world, the owners of Altria Corporation are led to raise the cost of their habits and suffering.
The companies have raised cigarette prices by nearly 35% over the past 10 years, even as smokers shouldered huge jumps in federal and state cigarette taxes. Altogether retail prices and additional taxes hiked the cost of a pack to $5.95. This was more than double the rise in overall consumer prices.
This shows that the high rates of profitability in addictive substances is the ideal method of exploiting not only the workers, but also the consumers. The change in the demographics of cigarette addicts has forced the industry to intensify the rate of exploitation of those who can least afford the habit in a long period of economic stress and high rates of unemployment.
The captains of the stock market seem unshaken. The stocks look rich based on their double-digit price per earning ratios. The high rates of profitability in the industry have led the management to implement the strategy of stock buybacks and huge stock awards for management compensation.
Altria is by far the biggest US cigarette maker in both market weight ($61 billion ) and revenue-wise (over $16 billion a year). A substantial share of the company profits are generated outside the US. Philip Morris International, a subsidiary of Altria, sells Philip Morris brand lineups in about 180 countries around the world.
In other words, the men, women and more frequently, elementary-aged children - often at the cost of their lives - are providing these gentlemen in New York and Chicago with lavish life-styles. (Looking at just a few of the advertisements in major corporate newspapers as the Financial Times, New York Times, The Telegraph, etc. directed at this wealthy 1%, we see a woman's handbag selling for $4,000).
In 2009, Altria purchased the smokeless-tobacco producer UST, which makes Copenhagen and Skoal brands at the cost of $11.7 billion. The reason Altria shouldered such a high cost price is that smokeless tobacco is a much-less regulated part of the worldwide cigarette market. Lack of regulations leaves the smokers at the mercy of the tobacco industry. Altria generates in an average $3.5 billion a year in cash flow, most of which ends in the investor's bank accounts in the form of dividends and interests and conspicuous consumption.
As a group, cigarette smokers have lower household incomes than non-smokers and are nearly twice as likely to be unemployed, says a financial officer of Morgan Stanley, a banking corporation. Studies have shown that in communities with higher economic status, its members send their children to better-financed public schools and private universities where environmental sciences and healthier life-styles are emphasized in the educational curriculum from early grade school through university level.
Anti-smoking campaigns partially financed by higher city and state budgets are more predominant on expensive billboards in these higher income communities.
On average a member of this lower economic class spends more than $2,000 annually, smoking a pack a day, the amount that could be allocated towards the present and future sustenance. Smokers, in their attempts to halt casting a large amount of money to the rich, many have traded down to either cheaper cigarettes or bulk tobacco for rolling their own cigarettes.
For this reason, shipments of roll-your-own and pipe tobacco jumped 30% in the first half of 2011. In the brave new world, particularly the Facebook generation age 21 through 29 is no longer fascinated with that rugged cowboy who was for many decades the symbol of Marlboro.
Alongside Altria in the tobacco market stand such giants as Reynolds American, maker of Camel and Pall Mall as well as Natural Spirit brands selling the ugly and more hazardous chewing tobacco brands. To entice new smokers or keep the old ones in the loop, the cigarette companies constantly hatch out new names with new packets. Recently, Philip Morris USA came up with what it calls the "Marlboro Leadership Program" which puts a price cap on what the retailers can charge for a pack of Marlboro in return for promotional incentives, such as a free pack for every carton sold.
While in the US, after years of public pressure, the federal and state governments have imposed some restrictions on advertising and marketing tobacco products, the same companies in the markets of the developing countries promote and glamorize smoking among school children, going so far as to distribute free packs of cigarettes along the pathways leading to schools, the way they did just a few decades ago in the run-down parts of the big cities and the depressed small towns across the US.
Also, the ruling classes of the countries whose economies are dependent on the US and its partners benefit from such relations through providing lucrative markets for the tobacco products of the major international cigarette producers.
It is telling that the gains posted by these tobacco companies in 2011 was skyrocketing when few other stocks were thriving last year. A group of mutual fund managers who tried to avoid negative performance by the end of the year resorted to placing the shares of several tobacco firms among their top holdings.
Gains of more than 20% among the addiction enablers helped these funds outperform their rivals and attracted the moderate savings and the retirement funds of the employed and retired working class. Such is the political economy of the habit-forming industry, addiction of the oppressed and higher rates of profitability.
Ardeshir Ommani is a writer on issues of war, peace, US foreign policy and economic issues. He has two Masters Degrees in the fields of Political Economy and Mathematics Education.
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%
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.
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