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Friday 16 June 2017

The Economic Myths of UK's 2017 General Election Exposed

Ann Pettifor

With Grenfell Tower, we’ve seen what ‘ripping up red tape’ really looks like

George Monbiot in The Guardian

For years successive governments have built what they call a bonfire of regulations. They have argued that “red tape” impedes our freedom and damages productivity. Britain, they have assured us, would be a better place with fewer forms to fill in, fewer inspections and less enforcement.
But what they call red tape often consists of essential public protections that defend our lives, our futures and the rest of the living world. The freedom they celebrate is highly selective: in many cases it means the freedom of the rich to exploit the poor, of corporations to exploit their workers, landlords to exploit their tenants and industry of all kinds to use the planet as its dustbin. As RH Tawney remarked, “Freedom for the pike is death for the minnows.”

It will be a long time before we know exactly what caused the horrific fire in the Grenfell Tower, and why it was able to rage so freely, with such devastating loss of life. But it seems at this stage likely that the rapidity with which the fire spread was either caused or exacerbated by the cladding with which the tower was refurbished.

There have been plenty of warnings that cladding can present a severe fire risk. To give just one example, in 1999 the House of Commons select committee on environment, transport and rural affairs published a report entitled Potential Risk of Fire Spread in Buildings Via External Cladding Systems.

But both Conservative and New Labour governments have been highly reluctant to introduce new public protections, even when the need is pressing. They have been highly amenable to tearing down existing protections at the behest of trade associations and corporate lobbyists. Deregulation of this kind is a central theme of the neoliberal ideology to which both the Conservatives and Labour under Tony Blair succumbed.

In 2014, the then housing minister (who is now the immigration minister), Brandon Lewis, rejected calls to force construction companies to fit sprinklers in the homes they built on the following grounds:


Conservative MPs see Brexit as an excellent opportunity to strip back regulations

“In our commitment to be the first Government to reduce regulation, we have introduced the one in, two out rule for regulation … Under that rule, when the Government introduce a regulation, we will identify two existing ones to be removed. The Department for Communities and Local Government has gone further and removed an even higher proportion of regulations. In that context, Members will understand why we want to exhaust all non-regulatory options before we introduce any new regulations.”

In other words, though he accepted that sprinklers “are an effective way of controlling fires and of protecting lives and property”, to oblige builders to introduce them would conflict with the government’s deregulatory agenda. Instead, it would be left to the owners of buildings to decide how best to address the fire risk: “Those with responsibility for ensuring fire safety in their businesses, in their homes or as landlords, should and must make informed decisions on how best to manage the risks in their own properties,” Lewis said.

This calls to mind the Financial Times journalist Willem Buiter’s famous remark that “self-regulation stands in relation to regulation the way self-importance stands in relation to importance”. Case after case, across all sectors, demonstrates that self-regulation is no substitute for consistent rules laid down, monitored and enforced by government.

Crucial public protections have long been derided in the billionaire press as “elf ’n’ safety gone mad”. It’s not hard to see how ruthless businesses can cut costs by cutting corners, and how this gives them an advantage over their more scrupulous competitors.



Grenfell Tower fire is corporate manslaughter, says Labour MP



The “pollution paradox” (those corporations whose practices are most offensive to voters have to spend the most money on politics, with the result that their demands come to dominate political life) ensures that our protections are progressively dismantled by governments courting big donors.

Conservative MPs see Brexit as an excellent opportunity to strip back regulations. The speed with which the “great repeal bill” will have to pass through parliament (assuming that any of Theresa May’s programme can now be implemented) provides unprecedented scope to destroy the protections guaranteed by European regulations. The bill will rely heavily on statutory instruments, which permit far less parliamentary scrutiny than primary legislation. Unnoticed and undebated, crucial elements of public health and safety, workers’ rights and environmental protection could be made to disappear.

Too many times we have seen what the bonfire of regulations, which might sound like common sense when issuing from the mouths of ministers, looks like in the real world. The public protections that governments describe as red tape are what make the difference between a good society and barbarism. It is time to bring the disastrous deregulatory agenda to an end, and put public safety and other basic decencies ahead of corner-cutting and greed.

Wednesday 14 June 2017

Momentum - successful grassroots organising!

Rachel Shabi in The Guardian

Not so long ago, in the slur-filled era before this year’s election, Momentum, the grassroots group of supporters for Labour leader Jeremy Corbyn, were routinely dismissed as armchair activists, cultish Trots, delusional young naïfs, or some combination of the three. Now, media coverage of the group carries headlines such as “How Momentum changed British politics for ever” and “How Momentum HQ perfected social media outreach”.

The 24,000-member group didn’t deserve those dismissive pre-election labels, but it has certainly earned the more recently positive ones. Credited with mobilising the youth vote, Momentum’s snappy social media campaigns gleaned millions of shares. The group also sent scores of campaigners – some of them first-time canvassers – into the country’s most marginal constituencies, helping to drive up support for Labour, house by house and street by street.

Using an online map of marginal seats as well as WhatsApp and phone banks to enlist and direct activists, the group transformed Labour’s canvassing game, helping to turn seats such as Canterbury, Sheffield Hallam, Derby North and Croydon Central into Labour wins. MPs who may once have criticised the group are now more enthusiastic, while Momentum organisers say that, since members and constituency campaigners worked so closely in the past six weeks, relations are more cordial. Those who were divided over past splits in the Labour party got to know each other – and found that they got along.

Now, Momentum wants to build on the – oh, let’s just go with it – momentum to militate against any complacency over Labour’s dramatic increase in voter share, now at 40%, or disillusion that the party nonetheless lost the election. Since the general election, the Labour party has gained 35,000 new members, while 1,500 have joined Momentum. With greater numbers, capacity and credibility, the task now is ensuring more activists join in and are election-ready – because who knows how soon we’re going to have to do it all again.

But elections aren’t the only focus. For a start, Momentum wants to move away from the idea that political campaigning only takes place when votes are needed. It plans to engage in community action, whether that’s voter registration campaigns or support for local causes, so that the group and, by extension, the Labour party, is organically active at grassroots level. Not to re-open old wounds – and definitely not now the Labour party is united in support for its leader – but this terrain might have been broached sooner, were it not for Momentum instead having to rally in support of Corbyn during last year’s leadership challenge.

In any case, such endeavours, however embryonic, have already begun. Last year, local Momentum groups started to collect and volunteer for food banks. Now, national organisers are looking at the possibility of running these independently, although the idea isn’t to provide tinned beans bearing party slogans so much as to support local communities in tackling hardships also addressed by Labour’s political offer. At a time when so many have been terribly affected by the recession and Conservative austerity cuts, there are multiple social issues where Momentum could get involved.

The focus seems to be on harnessing the political engagement unleashed by Corbyn’s leadership and fostering unity among Labour’s different voter groups. This pursuit of collectivism, in the face of decades of rampant individualism, was always one of the more radical aspects of Corbyn’s leadership. It was in evidence throughout his campaign speeches, where he often spoke of society’s many cohorts as one community, binding together groups – young and old, black and white, nurses as well as builders and office workers – that are more often encouraged to compete against each other in the current economy.

Momentum draws inspiration and cross-pollinates ideas with the leftwing Syriza party in Greece and Podemos in Spain, both of which were fed by practical, grassroots organising to counter the effects of crippling austerity cuts. In Greece, for instance, the social movements that ran health clinics, food banks and legal aid centres were the blood supply for the Syriza party now leading a coalition government. In the UK, Momentum is also looking at growing the information-sharing debates developed by the World Transformed, which launched parallel to the Labour party conference in Liverpool last year and hosts political events.

The intention is to convert social media clicks and shares into practical action: the demand for Momentum’s election campaign training and turnout on the doorstop has shown that there is a desire to get involved, given the means, confidence and skills to do so. It’s also pretty much what grassroots democracy looks like – a movement that chimes with and feeds into a viable political party. And it’s this combination – a left wing effective both at parliamentary and community level that could help turn the Labour party into an unstoppable political force and propel it into power.

23 Signs You're about to be Fired

Aine Caine in The Independent


Getting fired can be a real shock to the system.

But there are usually signs that your termination is pending. You've just got to know where to look.

Maybe your boss is out to get you. Maybe you've been embroiled in some recent controversy at work. Or maybe your organization is undergoing a massive transition or merger.

Either way, it helps to be prepared.

Lynn Taylor, a national workplace expert and the author of "Tame Your Terrible Office Tyrant: How to Manage Childish Boss Behavior and Thrive in Your Job," tells Business Insider that the savviest professionals always keep an eye out for the classic signs that their job is in danger. This way, if and when they notice red flags popping up, they can attempt to turn the tides before it's too late.

Here are 23 signs you may be getting the boot:

You receive a bad performance review (or two, or three)

A negative evaluation is not always synonymous with being fired, but, in conjunction with other bad feedback, it can mean trouble, says Taylor. "Your employer needs to create a paper trail, so along with warnings, your employer will use a performance review to document the problem areas."

More than one poor performance review in a row is an especially bad sign, adds Michael Kerr, an international business speaker and author of "The Humor Advantage."

"Depending on how bad your first performance review was, you may be given a chance to make corrections and improve, but a series of critical performance reviews could be a major sign that your job is in jeopardy," Kerr tells Business Insider.

If it's because of a lack of experience or lack of training in a certain area, then there's always a chance to fix it. But critical phrases to be mindful of during performance reviews include, "You're not a good fit for our culture," "You're not a team player," "Your personality or style doesn't seem to mesh with the team," or "You have a major attitude problem."

"If you hear any of these types of criticisms then it's time to break out your résumé, since it's often assumed that attitudinal issues are deeply engrained and unfixable," he says.



You're left out of the loop

If it's suddenly hard to access important data that would help you perform well in your job, or you're not invited to important meetings or included on key emails, a pink slip may be coming your way, says Taylor.

"There could be other reasons for this happening, but certainly one may be that your leadership has lost the trust or confidence in your abilities, making you vulnerable when and if layoffs happen," Kerr says. 

Your job has become mission impossible

"When you first assumed the role, you had your marching orders and could accomplish them. Now it seems that you're tasked with projects akin to climbing Mount Everest blindfolded," says Taylor.

"You're being set up to fail," Kerr explains. "Sometimes this is due to lousy leadership, but occasionally it can be because a company wants to get rid of you, but they need solid evidence to do so, and setting you up for disaster is one way of getting the 'proof' you longer belong there."
Your boss has 'warned' you (more than once)

Formal warnings are never a good thing. "You may have received a verbal warning, a written warning, and maybe even a second written warning," says Taylor. If you have, know that more bad news may be coming your way.

Your relationship with your boss has deteriorated

You used to be friends (or friendly, at least) -- but now there's tension whenever you're in the same room. "Once your relationship has deteriorated to the point of being toxic, then how your boss treats you -- from ignoring you to publicly berating you -- can be obvious signs that your job might be in peril," says Kerr.




You're asked to provide detailed reports about time or expenses

"Increased scrutiny is a phenomenon that is rarely initiated by the accounting department," Robert Dilenschneider, author of "50 Plus!: Critical Career Decisions for the Rest of Your Life," tells Business Insider. "The boss believes that you have wasted time or inflated expenses. Even if you are 100% innocent, it doesn't matter. Find out if you are the only person being scrutinized."
Fewer projects are coming your way

Here's a bad sign: You suddenly have a lot of time on your hands because not a lot of work is being assigned to you. "As you try to secure normal work, it seems it's hard to get cooperation from your boss and other managers," Taylor says. "They're suddenly making your work life difficult."
Teamwork isn't your strong suit

It's important to fit into the company's culture. That means taking one for the team sometimes, as HR consultant Laurie Ruettimann tells Reader's Digest: "If we ask you to travel for your job or attend a conference, it's not really a question. Say no, and it can be career-ending."

You've lost resources

When you lose staff, budgets, and access to certain outside services and/or office space -- or any number of tools that would enhance your performance -- it could be because your employer is trying to push you out. 

Your boss is on your case all the time

Are you constantly being asked for progress reports? Do you find that your boss constantly monitors your work?

If so, you may want to start looking for a new job, says Dilenschneider.

You're being micromanaged or ignored

It seems that you're working in extremes. Either your boss is watching your every step, or they're nowhere to be found. "Either way, it makes for a highly uncomfortable environment," Taylor explains. "If they're watching over you, you feel a lack of trust. If they're ignoring you, then you are in a seemingly endless state of inertia on your project status."


You have fewer responsibilities

Do you feel less important? Have your subordinates been transferred to other managers? Have projects been reassigned to your colleagues? If so, you could be getting the boot sometime soon.
Your perks start to evaporate

"Your colleagues are all sent to a conference in Marrakesh, but you aren't invited. You are told to fly coach after years of flying business class. Suddenly, you lose your corner office and are relocated to the bullpen," says Dilenschneider. "Perks are an important part of the job, and if you sense yours are being eroded, you have every right to worry."
You're no longer praised for your work

Even if you performed a miracle never before witnessed by a mortal being, it seems your boss wouldn't acknowledge it now. "To do so would run contrary to the campaign underway to remove you from the company," explains Taylor.

You've received a pay cut or been asked to take time off

If you've been asked to take a leave of absence, you probably have something to worry about. "This is a major sign that things aren't well, even if it's under the guise of being what's 'best for you,'" says Kerr. "It's the equivalent of a dating couple 'taking a break for a while' -- and we all know how that usually ends."

You notice more gossip and strange behavior from your coworkers

When people seem to shy away from you, and you notice it most from people with whom you shared a friendship, it probably means something's up. "Oftentimes when coworkers hear rumors about someone being fired or even reprimanded, they stay away to avoid 'guilt by association,'" Taylor says.


You report to new or more people

Suddenly you're reporting to more junior people or more managers in a matrix environment. "There's more red tape and bureaucracy whereas before you could get your work done in a streamlined way," Taylor says. This isn't a great sign.

You've made a major mistake that causes your company external embarrassment or a lot of money

"Depending on the context and how your leadership team treats failures and setbacks, especially in the realm of experimenting with innovative ideas, then you might be allowed to file a major mistake under the heading 'learning experience,'" Kerr says. "But for some, this will mean an early exit out the door."

Your boss goes directly to your subordinates

This sign is similar to "being left out of the loop" -- but even worse. "Most organizations have a chain of command, and when it is disrupted, it is a clear indication that you are no longer needed," says Dilenschneider.

Your access to certain data is limited

When a company is preparing to let someone go, they sometimes limit or revoke the employee's access to certain accounts a bit prematurely.

Beware if your email password no longer works or you've been locked out of your company's intranet, says Taylor.

You're no longer asked for input on key decisions

Not being asked for input means your boss no longer values or cares about what you have to say, Kerr warns. "Freezing you out of the loop is often the first sign of a slow slide out the door."
There was a recent merger, but little information

After a merger, it's not uncommon for a company to make layoffs -- sometimes even massive layoffs, Kerr says.

"If you're feeling that your job was at risk already, then a merger could put the nail on the proverbial coffin," adds Taylor.

Your instincts are telling you something's wrong

"If you feel you've done everything you can, but still have that 'I might get fired' feeling, you're probably right, and it's likely time to move on," Andy Bailey of business coaching service Petra Coach tells Business Insider. "You may be an 'A' player, but it might have to be somewhere else. Begin seeking out other positions that better reflect your personality and work ethic."

Ketti Salemme of TINYPulse, an employee survey product, also tells Business Insider that it's important not to disregard your own instincts.

"Sometimes the sign can be nothing more than a gut feeling," Salemme says. "Whether it be a shift in the company culture, your job duties, or your relationship with colleagues, this can be indicative enough that you may soon be let go."

Tax evaders exposed: The HSBC Files

Annette Alstadsæter, Niels Johannesen and Gabriel Zucman in The Guardian


The statistics on inequality – those used, for instance, in Thomas Piketty’s bestseller, Capital in the Twenty-First Century – only include the income and wealth the taxman sees. So how high is inequality when also accounting for what he doesn’t see? Recent leaks from tax havens suggest the gap between the rich and the rest is even wider than we think.
Tax records are invaluable for the study of economic inequality. They contain detailed information about the income (and, in some countries, wealth) of taxpayers. Much of this information comes directly from employers and banks, and is therefore reliable. And because tax records exist as far back as the early 20th century, they can be used to shed light on the long-term evolution of inequality.

The graphs published on the World Wealth and Income Database, for example, show just how powerfully this information can inform the public debate. The top 1% income share is now closely scrutinised by journalists and policymakers in the US, where the rise of inequality has been particularly extreme; it even gave the Occupy movement its motto: “We are the 99%.”

But for all their merits, tax data raise an obvious issue: by their very nature, they entirely miss tax evasion. Is this a serious problem? That depends: if tax evasion is equally prevalent among rich and poor, measured inequality will be unaffected. But if the rich dodge taxes more than others, tax records will underestimate inequality.


At the time of the 2007 leak, HSBC Switzerland was a major actor in the offshore wealth management industry. Photograph: Harold Cunningham/Getty Images

Before now, there hadn’t been any attempts to address the measurement of global tax evasion systematically. The reason is simple: the lack of comprehensive information about who skirts taxes. The key data source used in rich countries to study tax evasion is random tax audits – but these audits do not capture tax evasion by the very wealthy, because few of them are audited, and because random audits fail to detect sophisticated forms of evasion involving shell companies and hidden accounts.


The higher one moves up the wealth distribution, the higher the probability ​​of hiding​ assets

In our recent study, however, we exploited a massive trove of data leaked from HSBC Switzerland, the so-called HSBC files, to fill this gap. In 2007 a systems engineer, Hervé Falciani, extracted the internal records of HSBC Private Bank, the Swiss subsidiary of HSBC. In 2008, Falciani turned the data over to the French government, who shared it with foreign tax administrations. The documents leaked by Falciani included the complete internal records of more than 30,000 clients of this Swiss bank in 2006-07.

At the time of the leak, HSBC Switzerland was a major actor in the offshore wealth management industry. It managed US$118.4bn – about 4% of all the foreign wealth managed by Swiss banks. This is a unique source of information through which to study tax evasion, because the leak can be seen as a random event, and it comes from a large (and, the available evidence suggests, representative) offshore bank.

We also made use of the Panama Papers, which last year revealed the identity of the shareholders of shell companies created by the Panamanian firm Mossack Fonseca. Just as with HSBC, this leak is valuable as it can be seen as a random event and involves a prominent provider of offshore financial services. The Panama Papers, however, have one drawback: they do not allow us to estimate how much tax was evaded (if any) by the owners of the Mossack Fonseca shell companies. It is not illegal per se to own shell corporations in Panama or elsewhere.


  Leaked documents revealed the identity of the shareholders of the shell companies created by the Panama-based law firm Mossack Fonseca. Photograph: Kin Cheung/AP

We combined random audits with these new sources of information to shed light on who really evades taxes in Denmark, Norway and Sweden – and the results are striking.

The higher one moves up the wealth distribution, the higher the probability of hiding assets. Scandinavian households in the top 0.01% of the wealth pyramid – the ultra-rich, who own more than $40m in net wealth each – are 250 times more likely than average to hide assets. Furthermore, the ultra-rich HSBC customers had considerably more wealth in their accounts than other customers – so although they were very few in number, they owned around half of all the wealth hidden at HSBC.


In Norway, the super-wealthy appear to be 30% wealthier when all the wealth hidden in tax havens is taken into account

This pattern is not specific to HSBC or the Panama Papers. Over the last few years, thousands of Norwegians and Swedes have voluntarily declared previously hidden assets under a tax amnesty. Here again, the super-rich are found to own half of the total amount of offshore wealth.

So what are the consequences for inequality? At the very top of the pyramid, it is much greater than previously estimated. In Norway, where the available wealth data is particularly detailed, the super-wealthy appear to be 30% wealthier than previously thought, when all the wealth hidden in tax havens is taken into account. The share of wealth owned by the top 0.1% increases from 8% to 10%.

Since Scandinavians generally pay their taxes and hide little wealth in total, our results are likely to be even stronger in Great Britain and elsewhere. A more accurate measurement of tax evasion would likely increase inequality levels even more than in Scandinavia.

These results underscore a basic truth: in a world where wealth is globalised and where a big industry has specialised in helping the ultra-rich avoid and sometimes evade their taxes, our ability to track great fortunes – and to tax them appropriately – faces considerable challenges.

But does this mean nothing can be done? Not at all.

It is possible to collect much better information on wealth and its distribution. Progress has already started in this area, as a number of tax havens have agreed to automatically exchange bank information with foreign countries’ tax authorities – a major evolution since the time of the HSBC leak.

But this policy faces an obvious issue: what are the incentives for offshore bankers to provide truthful information? After all, these are the same people who for decades have been hiding their clients behind shell companies, and sometimes even smuggling diamonds in toothpaste tubes or handing out bank statements concealed in sports magazines – all of this in violation of the law and the banks’ stated policies. Yet it still should be possible to secure their cooperation, if they face stiff enough sanctions for non-compliance.

More broadly, the key to successfully fighting tax evasion is to change the incentives for the providers of wealth concealment services. Over the last few years, a number of banks have pleaded guilty in the US to criminal conspiracies to defraud the Internal Revenue Service – yet they were able to keep their banking licences, and the fines they had to pay paled in comparison to their profits. A more ambitious approach would put criminal organisations out of business. If tax evasion ceases to pay, it will disappear.

NDTV and Chidambaram by Subramanian Swamy

In conversation with Rajiv Malhotra

The Corbyn Effect

Part 1 Andrew Murray interviewed byTariq Ali

Part 2