Customers didn't have to pay more for their washing powder to help prevent Wilko going bust. Energy firms should be no different. That Ofgem thinks this is remotely acceptable is evidence of regulatory capture.
#r4today
giving a platform to Ian Maxwell to protest his sister's innocence shows two features of BBC news: a class bias (do working class nonces get the same privilege?); and a prioritizing of "balance" so that a jury verdict has no more weight than some guy's opinion.
One oddity of the Truss govt is its sheer randomness. "We don't want to tell people what to do": we want to criminalize cannabis. "We're pro-growth": we're banning solar farms. It's policy-making by tombola.
That's ยฃ1578pa less for households to spend on other things - which means closures of pubs, shops & restaurants. This isn't just a catastrophe for the worst-off: it's disaster for almost everyone.
BREAKING:
@Ofgem
says the energy price cap'll rise an avg 80% on 1 Oct, taking typical bills from ยฃ1,971/yr to ยฃ3,549/yr.
Iโll tweet on the new standing charge & unit rates ASAP, plus as it varies by region & use, once we've data, link to our new personalised price calc.
There are valid arguments against nationalization. But the "cost" is not one: you're buying an income stream. The fact that this drivel isn't laughed out of existence shows how debased the political discourse is.
Labours Thangam Debbonaire says the next Labour govt won't take our failed privatised water industry into public ownership because of the cost. Why not issue bonds?
But then of course, cost is simply an excuse to mask the Labour rights ideological oposition to public ownership.
I don't consider myself a Corbynista: too much moralistic posturing for me. But I am anti-anti-Corbyn: his critics seem clueless about the crisis of capitalism
Blairism was a continuation of Thatcherism in some senses (eg low top tax rates, relaxed about growing income share to the 1%, similar share of govt spending in GDP), but not in others (eg NMW, tax credits). Why is this so difficult?
If I'd been chairman of a bank that went bust, I'd keep quiet about economic illiteracy. But then, if I'd been the old Etonian chairman of a bank that went bust, I might lack the self-awareness & humility to do so.
It is as affordable as we want it to be. Starmer is pulling off an old ruling class trick here - presenting their own preferences as some kind of economic necessity.
'I don't think 35% is affordable'
Labour leader Sir Keir Starmer agrees that the pay demand from junior doctors is too much, but says the government must 'get round the table'
In a free market, Thames Water would go bust & customers faced with rising prices would shop elsewhere. But then, Tories have never really believed in a free market; they only talked about it to justify transferring wealth to their cronies.
Thames Water bills could rise by up to 56% or ยฃ262 per year for average household by 2030.
Why?! Because of the companies dodgy financing decisions since privatisation.
Meanwhile, the CEO gets paid millions.
They really do think weโre mugs
This could be one cause of low productivity growth. If we're handing our money over to sclerotic parts of the economy (landlords, utility companies etc) we've less to spend in dynamic sectors. as Ricardo pointed out.
๐ต Labour members in Manchester sing โOh Rebecca Long-Baileyโ as she arrives for her speech. ๐ต
Will Long-Bailey stick to the same tune as Jeremy Corbyn? Seems they hope so.
One lesson of Farage's career is that you can achieve big political change from outside parliament, if you have access to other levers of power. It's a paradox that whilst the left has for years spoken of extra-parliamentary action, it is the right that has best practised it.
This shouldn't need saying, but as the Bullingdon club is trending it does: it is only anti-social behaviour if the poor do it; what the rich do is high jinks. At least learn the language of our class society.
Price controls are normal in wartime (which is what this is from the pov of the energy "market"). What's also normal in wartime, though, are laws against profiteering - and not state aid for doing so.
It's odd how some people care so much about freedom of movement as a threat to the low-paid but so worry little about other threats such as monopsony, weak unions, austerity, an inadequate welfare state, & capitalist stagnation. Cynics might almost think them guilty of bad faith
Last year we exposed the scandalous conditions some people are living in in our capital city. Weโve been back to the estate to see what, if anything, has changed. And the council leader has this time agreed to come onto our programme, live 10am
@BBCTwo
@BBCNews
"Reasoning will never make a Man correct an ill Opinion, which by Reasoning he never acquired" - Jonathan Swift. This is why "debating" the far right is pointless.
If Steve Baker cared about freedom, he'd oppose the govt's stripping people of their citizenship & criminalizing protest. Wanting freedom only for people like yourself isn't libertarianism; it's narcissism.
"Conservatism consists of exactly one proposition, to wit: There must be in-groups whom the law protects but does not bind, alongside out-groups whom the law binds but does not protect" - Frank Wilhoit
"It wasn't a crime"
Conservative Desmond Swayne claims the picture of Boris Johnson at a gathering with bottles of wine took place at a "work meeting"
#Newsnight
It's strange how those people who are likening Johnson's neighbours to the Stasi for calling the police weren't so upset about someone photographing Diane Abbott drinking on a train. Their complaints aren't serious, but just mindless tribalism.
Contrast Cleverly feeling comfortable enough to tell a date rape joke in public to Labour pols (eg Miliband as leader) being scared of their own shadows. That's the asymmetric influence of the media.
Of today's 5.1% CPI inflation, just 3 components (representing 7.6% of the CPI basket) account for 2pp of it: used cars (where inflation is 27.1%), petrol (28.5%), & electricity & gas (23.2%). It's not obvious that higher rates are the solution to this.
Hypothesis: the UK's acute lack of management ability (across most industries) means that the railways will be poorly run whether in public or private hands.
When I was preparing for my Oxford entrance exam, my teacher told me to study Irish history on the grounds that nobody knew anything about it so if I did I would stand out. Almost 40 years on, his point still holds.
@flying_rodent
@JonnElledge
Quite. The fact that capitalism (at least in its UK form) is failing millions of people is one that cannot be discussed in polite society.
In R4's 7.30am news the BBC said "taxpayers' money" has paid for the furlough scheme (it hasn't); that the UC cut will "save the govt up to ยฃ6bn"; & that higher grad loan repayments will "save ยฃ3bn of public money" (rather than cost people those amounts). This is not impartial.
Not only can we not have nice things, we're fast approaching the point where we cannot even have rational discussion about whether to have nice things.
A real human being, a living, breathing, sentient human being has got so angry about the possibility of being able to nip out and back to the post office and the butchers in 10 minutes that they have painted this placard.
There's no "harsh economic reality" requiring children to stay poor. If lifting them out of poverty would be inflationary, the solution is to raise tax or cut spending elsewhere. To not do this is a *choice*, not an economic necessity.
'There just, frankly, is no money left'
Shadow culture secretary Lucy Powell says the Labour Party can't make promises it 'can't afford to keep' as she defends Keir Starmer's plan to keep the two-child benefit cap in place
There are no systemic or institutional failings in UK politics, only the persistent bad luck of having the wrong people in charge. This opinion is of course absurd - but it's what many MPs & journos seem to believe.
I didn't vote remain because I loved the EU. I did so because I didn't want the economic hit & to oppose the racists & reactionaries who supported Brexit. All this is still true.
The great Andrew Glyn used to ask: what's the mechanism? Which is one qn (of several) we must ask here: what's the mechanism whereby an insurance model will produce more doctors, nurses & hospitals?
There's lots of praise for Merkel for this. But it only tells us a basic fact about democracy: if you vote for a scientist you get a scientist, and if you vote for a comedian you get a comedian.
This is how Angela Merkel explained the effect of a higher
#covid19
infection rate on the country's health system.
This part of today's press conf was great, so I just added English subtitels for all non-German speakers.
#flattenthecurve
People said a similar thing after 9/11: emergency services were more important than hedge fundies. That attitude didn't last, Inequality is determined more by the balance of class power than by sentiment.
โIt turns out that we can function without celebrities or star athletes, but we really cannot function without nurses, doctors, care workers, delivery drivers, the stackers of supermarket shelves or, perhaps unexpectedly, good neighbours.โ My latest
Those people opposing masks are NOT libertarian: if they were they'd be loudly opposing migration controls or the Police, Crime, Sentencing and Courts bill. They are just narcissists.
Are there any other jobs paying around ยฃ80k pa where it's normal for folk to have a second job as well? Do (eg) accountancy firms have to allow employees to have side jobs for fear of losing talent?
I became an economist because I'm left-handed: being unable to write much was a handicap in history/politics/philosophy exams, but not in economics, where I could do diagrams & equations instead
#LeftHandersDay
Everybody's pointing & laughing at James Delingpole. But this tells us something about the BBC: a tendency to draw on a narrow roster of (often posh) blowhards to the neglect of expertise. (No I'm not telling them to have me on: I wouldn't appear)
At the time, officials thought the police acted fairly towards the Shrewsbury 24 and Birmingham 6; had acted in self-defence at Orgreave; and that the deaths at Hillsborough were accidents.
The art of right-wing politics is to distract people from the fact of the material failures and injustices of capitalism. What's remarkable is how easily they can do this.
Economists' main objection to Brexit wasn't that it'd cause short-term disruption at ports. It was that even small trade frictions would gradually reduce productivity growth relative to what it would otherwise be. Whatever happens next month doesn't invalidate this point.
On Radio 4's PM, Priti Patel repeated Raab's claim this AM that this is a "great deal" for NI because they get "frictionless trade with the EU. As with Raab, the interviewer missed the obv qn: if frictionless trade is such a good thing, why can't the whole of the UK have it?
I'm not surprised to see people defend Kwarteng/Truss: tribalism is a powerful force. What is surprising is how risible the defences are: FX traders are left-wing, the IMF is woke: and 2010-19 didn't happen. If I want to see clowns I'll go to the circus.
I'd like Labour to tell us why the incomes of landlords should be protected more than those of small businesses. The latter's losses mean we risk losing a valuable asset if the business shuts: the former's don't (unless they burn the house down)
Key qn in today's Budget: what inadequate gimmicks based upon a discredited ideology will the economically illiterate media be fawning over this afternoon?
Since everybody else is seeing what they want to see in the P&O outrage, I'll join in. It's one of many symptoms of capitalist stagnation: companies that cannot raise efficiency or sales can sustain profits only by cutting pay and conditions.
The idea that you can cheaply & easily reform an organization as large as the NHS in a country lacking state capacity & management skill is an example of what I've called centrist utopianism:
Liz Kendall is asked how Labour are going to fund improvements to the NHS and social care. Kendall rules out taxing the wealthy, & pressed on how Labour will therefore be able to deliver those improvements, she emphasises the importance of reform.
#Ridge
Listening to Born in the USA in the gym reminded me that deindustrialization & its correlates, a sense of decline & threat to male identity, are themes that are 30+ years old. Which poses the qn: why did they only recently come to dominate US politics?
Too many of our people donโt own anything. They have income, but no assets.
Our challenge is to rebuild a country where everyone can start and grow their own balance sheet: homes, shares, savings, treasure.
How can we expect people to be capitalists when they have no capital?
Alasdair MacIntyre said that being expected to sacrifice one''s life for the modern nation-state was like being asked to die for the telephone company. Johnson now seems to be asking people to die for a branch of Pret.
If there were an Economists' Party, it would campaign for liberal immigration; rejoining the single market; shifting taxes from income to land; relaxing planning laws; & not worrying about the national debt. It would be to the left of Labour, & would win absolutely no votes.
Posh people can afford to say that politics doesn't matter much. For the person waiting weeks for UC, or facing benefit sanctions, or deportation, however, it matters enormously. Which is why the wrong people are in politics - those who don't have enough skin in the game.
It would save a lot of misunderstandings if "political correspondents" were renamed "Westminster gossipmongers" - e.g. why do they give Reform more attention than the Greens?, why do they get so much wrong?
I started working in equity markets weeks before the 1987 crash. I joined Nomura just before the start of Japan's long bear market. I became a journalist as the internet began to destroy jobs & pay. And today I'm retiring...
Can we ditch the phrase "trickle down economics"? It's a straw man. Those who support tax cuts for the rich don't care whether the poor will benefit or not: any claim that they will is wishful thinking or bad faith.
Those of you laughing at Burgon's idea for a Tony Benn University for political education should say where people could get a political education short of returning to school - coz it sure as hell isn't coming from the media.
Starmer is acting as if public opinion if something fixed (& well-defined) rather than something to be changed by campaigning. Which is a problem, because the right has spent decades shaping that opinion.
If it's true that kids are hungry because of bad parents, then the case for free school meals becomes even stronger. A key function of the state is to protect people from others' cruelty & incompetence.
Some do... dont think that's controversial to say, tbh. Some parents are not good parents and prioritise other things ahead of their kids. Small minority, yes... but some do. Step out of the PC bubble and come live in the real world.
He's not being paid for his expertise, any more than Osborne is. JP Morgan is showing finance ministers around the world that there are big rewards to be had if you don't upset them.
Free marketeers: markets are better at processing information than individuals.
Gilt market: government debt is not a problem.
Free marketeers: no, the market is wrong.
โWe are living beyond our means in the good times and living way beyond our means in the bad times.โ
Discussing public spending during the pandemic, the
@iealondon
's DG
@MarkJLittlewood
says โwe have to be realistic about how much the government is spendingโ
#Newsnight
The fact that the govt wants us back in offices whilst many large employers are happy for us to continue working from home reinforces the fact that the Tories are now the party of the most regressive sections of capital.
Badenoch is wrong here. We don't "need to make sure Thames Water an entity survives." We need to keep water clean & running. It doesn't matter who does that.
Private schools don't want poor kids going to Oxford for the same reason butchers don't want people to be vegetarians. I cant' believe anybody is stupid enough to think their arguments have any merit:
The binding constraint on UK fiscal policy is not interest rates, solvency or inflation. It is the media - which means the constraint is much tighter for Labour than for the Tories.
"Weak leadership, dreadful misjudgements and reckless gambles". That this account of Cameron's PMship can be so damning without mentioning austerity reminds just how contemptible he was:
Being incapable of providing a candidate in a by-election in a safe seat is not a good look - especially when you have no principles, no ideas & no charisma and are campaigning only on the claim to be competent.
Back in the 70s & 80s, the right had serious complaints: inflation, union power, high taxes. Today, their complaints are mostly trivial or imagined: mask-wearing, "cancel culture" etc. This is a big and under-appreciated change.
We've surely gone beyond the issue of Johnson's character by now. The question is why so many people are happily complicit in his serial dishonesty, even after the Corbyn threat has passed. It's not about them being deceived: everybody knows what he is.
The people who gave us these headlines are now telling us to go back to the days before central heating. They're just bad faith know-nothing tribalists who should be ignored.
It's odd how we no longer hear so much about evidence-based policy now there's abundant evidence that neoliberalism is failing millions of people. What a coincidence.
The people in this film are living through perhaps the greatest improvements in human history - the arrival of electricity, running water, cars - & for younger ones, radio, TV & flight. OTOH, they'll see the loss of cool hats.
It's odd how bankrupticies & unemployment are a price worth paying for Brexit, whilst slightly higher top taxes are not a price worth paying for more equality & better public services:
Most of us have at our fingertips the best music, books and films ever made. And yet many of you still watch Question Time. Have you not heard of opportunity cost?
The fact that Maitlis doesn't seem to have come across Fetzer's theory until reading it in a minor celebrity's rant illustrates the point I made here - that journalism is often uninterested in social science:
Just come across this extraordinary passage in โฆ
@mrjamesob
โฉ bestseller โ How they broke Britain โ.
Look at the impact austerity cuts had (- according to economist Fetzer- ) on the actual Brexit vote, in the light of this weekโs changes.
This is one reason why social mobility is a con: however well they do academically, working class people will stay shut out of the networks that boost earnings. The damage done by class society can't be healed by individual effort alone.
People don't need tax cuts to become entrepreneurs: they need premises they can afford to heat & light. This is so obvious that only ideology can stop one seeing it.