Thank heavens for the private sector!

Now that the awful public sector has rid itself of thousands of jobs, isn’t it great to see such a thriving private sector?

Well. No.

There are now more unemployed women, than in 1988. Overall unemployment is at its highest since 2009 – the middle of a recession. One in five people between 19 and 24 is unemployed. Average wages rose 2.8% since 2010, whilst RPI (inflation) rose 5.2%, which means wages actually fell by 2.4%.

So we were told that the private sector would take up the jobs lost in the public sector. George Osborne, back in November 2010, told the House of Commons in November that jobs created in the Private Sector, would:

Far outweigh

– the loss of jobs in the Public Sector.

Remember those “35 leading businessmen” that the Chancellor quoted, as some sort of economic demi-gods (I have always wondered why businessmen are considered economic experts. They are not economists. They have an agenda). They sent a letter to the Telegraph, in support of Osborne’s claim. They wrote:

“The private sector should be more than capable of generating additional jobs to replace those lost in the public sector.”

Here’s the letter in full. Tories loved to point to it, last year. I’m guessing they will be less forward in pointing to it, this year.

At its most optimistic, we we under the impression that someone who had spent their life in the public sector employed in a job they love, would now get a nice new job working the tills at McDonalds. Even that, failed to materialise. From April to June public sector job losses reached 111,000. The private sector jobs grew by 41,000. The problem is, the Government insisted in March, that only 20,000 (I say only, because it appears I have caught the bug of treating people and their jobs, as mere statistics – Am I becoming Tory? Dear God, I hope not) would lose their jobs. Unemployment rose by 80,000 in June.

Apparently, when you make people unemployed, and you devalue wages, it becomes impossible to kick start the demand needed for the private sector to thrive. WHO WOULD HAVE THOUGHT IT!

EDF have just announced energy prices are to raise by 15%, despite profits of Euro1.2bn last year. Last month HSBC announced 30,000 jobs would be cut. They must be struggling right? Again….well. No. The first six months of the year saw their profits raise 3% on the previous six months, to $11.5bn. Seriously. We are now only concerned, as a World, with profit. This is emphasised in the fact that the moment HSBC announced it was kicking 30,000 people out of their livelihoods, their shares rose 3.4%. Rich people absolutely love to hear that they can make even more money now that there isn’t the annoying factor of having to pay 30,000 people.

It is clear that demand creates jobs. Not wealthy businessmen. Referring to them as “job creators” is a falsity of epic proportions. When you take money out of peoples pockets with a VAT rise, with the removal of universal services, with housing benefit cuts; you cut demand in the process. Giving the wealthiest few a tax break isn’t going to change that.

When growth is downgraded, almost on a daily basis, they insist it is Labour’s fault, Europe’s fault, the snow’s fault. No, it is the fault of holding dear to the heart a dangerous Freidman-ite economic philosophy. As with HSBC mentioned above; the epitome of the thought process that leads to this kind of system, is that the abstract concept of the “market” is deemed to be improving, regardless of how many jobs are lost. Shares in HSBC increase, as 30,000 jobs are cut. There is a dramatic evil in that process.

Labour MPs and Shadow Ministers on Twitter insist on questioning whether Strike action is necessary. They should be ashamed to refer to themselves as ‘Labour’. A Labour party, who have seemingly made absolutely no impact on the political landscape since 2010, are quietly licking their wounds as a Tory party who have no legitimate mandate to carry out the ideological attacks they are inflicting, get away with it. If we don’t have the support of a half arsed Labour Party unsure of where its allegiances lie, given it’s past thirteen years of total capitulation to the financial sector, nor do we have the support of a weak Lib Dem party who cowardly abstain when they disagree with Tory policy, then Unions are the only other way to go. There is no other option. A very radical government, requires a very radical opposition. Instead, Labour seem to be constantly worried about their ties to the Union movement, rather than pro-actively and jointly making the case against deep and vicious austerity. The Tories have cleverly managed to set the political discourse in favour of a mythical, broken public sector, and away from the real broken sector; the financial sector.

Yesterday we saw that same Financial Sector produce a rogue trader responsible for UBS losing $2bn on unauthorised dodgy dealings. Have they learnt nothing? UBS was also responsible in 2009, for helping wealthy Americans set up offshore accounts to avoid tax. Growth for the sake of the wealthy, is not real growth. The banks have been let off the hook, by having the support of government like ours, who shift the blame from them, to the constantly demonised public sector.

If anything, we are finding out, for the second time in thirty years, that harsh and forced Neoliberalism is a dangerous dogma. Monetary policy does not pull Nations out of sovereign debt crises. It never has.

Unemployment – Done.
Dismantled NHS – Done.
Bend over to be fucked by the banks – Done.
Stagnating wages – Done.
Provoke riots – Done.
VAT rise – Done.
Pull any support for poorer children (EMA) – Done.
Close as many youth centres as possible – Done.
Close libraries – Done.
Make people work until they’re basically dead, before giving them a pension – Done.
Demonise disabled people – Done.
Rising inflation – Done.
Threaten Unions – Done.
Burden of debt created by wealthy, slammed onto the shoulders of Nation’s 18 year olds – Done.
Tax cuts for the wealthy – Done.
All within 15 months.

It makes Thatcher look like a Socialist in comparison.


2 Responses to Thank heavens for the private sector!

  1. dancingczars says:

    Try getting your facts straight. The crash of the US economy is directly at the feet of the lying Democrats who received money and sweet heart deals from Freddie and Fannie, Obama then blames Wall Street Bankers, yet hires them for his economic advisory team. He had increased our debt in real dollars more than all presidents in history. He’s been in office 2 months of three years. Can you tell me anything that he has done that is working to help America rather than destroy it? Good luck…

  2. Ah another crazed Republican. I thought i’d shed them all from this blog. Apparently not. I’m not sure why you even brought up America? I didn’t mention America once here, except in the context of UBS.

    Total income was $2.7 trillion less in 2008 than in 2000. No matter what you say, Obama wasn’t President then. Those were Right Winged years. The US wouldn’t have needed a stimulus had the Bush years not been so appalling. Those wondrous Bush Tax Cuts that were going to help everyone prosper greatly, actually resulted in the average tax payer in the US being down $3512 dollars in 2008 compared to 2000. Even more proof of the “trickle down” affect being a myth. According to the Tax Policy centre, because of the Tax cuts, the US treasury is down $1.8 trillion from the first eight years. The “record years of growth” often claimed by the Right Wing, as proof of the workings of the Bush Tax Cuts, were fueled mainly by the boom in very easy credit. Easy credit does not equal real growth. It equals dangerous growth, a band aid over the massive wage inequality gap between those who create demand but whose wages are stagnating (the masses) and those who own great wealth and whose wealth is at risk if the masses are not spending, but create very very little demand (those at the top). How do we know this must be the case? Well, the financial crash was based on credit gone wrong (this time. Next time, it’ll be another commodity). But also, the reason for that easy credit is clear; in 2008 total wages fell by almost 4%, for 87% of the US population earning below $100,000 in comparison with 2007. Yet, 1 in every 200 high income-tax payers paid absolutely no federal income tax in 2008. The Republicans now talk of Obama fighting a Class War? It’s hardly even a small skirmish in comparison to the Bush years.

    This obsession on the Right, with decreasing the size of government, is dangerous religious dogma.

    The Crash of the US economy was a culmination of many different factors. Firstly, the power of labour (at least in the UK) in the 1970s was defeated but replaced by the excess power of capital. When you have excessive power of capital, it absolutely never all goes back into growth for the sake of humanity (look at the US healthcare system; where your life is less important than UnitedHealth’s share price) but for the sake of more money and so we see dodgy stock market gambles using excess capital (we know this too, because whilst Bush was giving the super rich more money through tax cuts, hoping it’d lead to job growth; job growth in the Bush years was only just 1/7th that of the Clinton years). Secondly, the rise in easy credit fueled by the 1980s Banking deregulations acts. And thirdly, because Political Parties are funded by the very people who create the problems in the first place (you are right to point out that Obama is ridiculous for bringing in Wall Street criminals to his Economic team…… it is one of the reasons he’s been weak on fighting the actual problems, and capitulation to the Republican demands for cuts). But, it is equally as wrong for Republicans to have been manically anti-stimulus, yet happy to pose for photo opportunities when the stimulus money comes in.

    And what was the alternative to stimulus? Look at the UK economy now. We have a mass of tax cuts for the wealthy, alongside deep spending cuts. And instead of producing the desired results of the Right Winged; we now face almost stagnant growth, mass unemployment, high inflation, stagnating wages (even when not taking inflation into account) and rising home repossessions. Are you telling me, from all that, the right winged vision of how to deal with economic crises, is correct?

    So, why don’t you get your “facts straight”.

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