Showing posts with label UK economy. Show all posts
Showing posts with label UK economy. Show all posts

Friday, February 7, 2014

Conservative Soul

Sorry music lovers, this isn't a piece about some long lost strain that emanated from a rich enclave in America's South.  This is about the missing soul of conservatism.

Frit is the word used by the late and former UK Prime Minister, Lady Margaret Thatcher to describe someone who is frightened.  That term seems very apposite to describe modern day conservatives in both the UK and the US.  

I have posted here before concerning the lack of focus amongst America's conservatives -  http://bit.ly/1kiLq2r - so, today, I want to concentrate on UK conservatives but I think that there will still be resonance for US ones, as well, so stay tuned!

The UK will shortly be 'celebrating' four years of a Conservative 'led' coalition.  I use the term led because nominally, that is supposed to be the case.  The Conservative Party have the highest number of MPs in the House of Commons and considerably outnumber their Liberal Democrat partners, and yet one regularly comes away with the notion that it is the Lib Dems that are the senior partner.  It isn't just about better press management, by them.  Look at the policies of the Conservatives and see if you can find those that can be called truly Conservative.   Ok, how about just one? 

Europe is always touted by the media, led by the in-thrall BBC, to be a very divisive and electorally damaging issue for the Tories.  We are regularly 'told' that voters don't like to see a divided party and that the factional fighting within the Conservative party will make them unelectable.  And yet, these same voters are also, in large numbers,  said to be skeptical of the whole Euro project.  These same voters want to see a changed relationship between the UK and the European Union.  This is what is 'promised' by David Cameron along with a post the next  General Election, referendum.  I sense though that people just don't trust the Conservative leadership to deliver.  Cameron states that he wants to remain in Europe and will campaign on that basis, in any referendum, which kind of preempts his view of the choice that will be put before the British people -

 "Well we went and had these discussions with the EU and they agreed that, going forward we, the great British people, can have our MPs, sitting in the 'mother of all parliaments' decide on whether or not we retain British Summer Time (or insert some other meaningless non-concession).  Of course, negotiation is about compromise, and so we had to concede that in future, Britain's economic policies will be first approved by our colleagues in the EU, before we put them to the House of Commons, so that we know that they are aligned with those of the other EU states.  Yes we also had to cede control over foreign affairs to the EU but, with my former colleague, Nick Clegg, now the EU High Commissioner, we know we have a friend who will look after British interests and don't forget, while we had to give up the Pound Sterling, as an independent currency, we did manage to get the name of the Euro changed to the Pound"  
 Back to reality:
Why then aren't the Conservatives using their historical opposition to statist/corporatist institutions like the European Union and pushing this as a policy to the electorate?  Providing a real choice on Europe, for a change.  I know some will say, that this is what the UK Independence Party does but I really can't see them making the breakthrough in significant numbers to radically change the political make-up of Parliament. So it has to be the Conservatives that do this.  But first they need to regain their 'soul'.

The name of the Conservative Party in the UK is more properly, The Conservative and Unionist Party.  The Unionist tends to be forgotten by some because of its past associations with Ulster Unionists and their seeming intransigence (imagine! They wanted to remain part of the United Kingdom!!).  However, the party's roots are in maintenance of the whole United Kingdom and yet...
Consider the referendum that will occur in Scotland this year.  Where are the weekly or daily speeches by the Prime Minister and other leading Tories, extolling the virtues of a United Kingdom over a split one?  Where are the monthly ones?  Any speeches?  All we get are minor passing references buried in other keynote addresses.  If the Scottish electorate were some girl that the Unionists were trying to woo, then our apparent indifference will drive her into the arms of the Scottish Nationalist cad, who roguishly offers to take her away from an over-bearing parent and into the bright sunny uplands.  Where is the robust defence of what the 'union' means?  Where are the vigorous attacks on the economic lunacy that is presented as Scotland's future?  The attacks on the ever-encroaching state presence on Scotland's landscape?

If I were a Scot, I would look at the indifference shown by the Conservative and Unionist Party and think that since the Tories 'cannot be bothered with putting up any kind of fight for Scotland, then I cannot  be bothered with them or with the Union.  Maybe Salmond has a point!'

It is though on economics that the Conservative soul is found to be most absent.  

Consider.  At the tail end of the 1980s, communism was in its death throes (thanks in large part to Thatcher and Reagan's policy of confronting communism and showing to all, its inherent flaws).  Its slowly, slowly sister ideology, socialism, was also tainted by its association.  Even now people can look back at communism and see it for the human and economic failure that it was.  Nazism (which incidentally was based on socialism, though socialists and labourites get offended when you point this out), led to the slaughter of many millions of innocents but think on how many millions  Stalin and Mao and  Pol Pot and their communist fellow travelers massacred.

And yet, instead of seeing the adoption of capitalist and small government principles and the retreat of socialism, we have seen that governments of every hue, continued with the creeping implementation of socialism.

The UK's Conservatives have been complicit in this when out of office and we continue to see this with the current government.  The idea of moving the needle on public spending by a meaningfully noticeable amount seems alien to the current Tories.  True conservative values require that the state steps back, that the starting premise is why should the government be involved in doing this at all and why can it not be left to the private sector?  Instead there is no 'rolling back the frontiers of the state' but mere tinkering at the edges.  Does anybody think that Margaret Thatcher or Ronald Reagan would consider the current crop of UK Tories and American Republicans as 'conservative'?  Or would they see them as faintly pink quasi-socialists?  I believe the latter, you will take your own view.

These 'socialist-lite' Tories follow such defeatist policies even when in opposition, such as supporting the UK Labour parties bail-out of over-extended banks.  They wrap-up such an anti-capitalist policy in words that could be lifted straight from the Communist Manifesto and then blindly follow Labour through the division lobbies and support such dangerous and costly legislation.  Again, they allow the Bank of England to devalue currency by simply printing more of it, via Quantitative Easing  and then rationalize the whole thing by saying that there is no alternative and that they are making cuts to public spending.  Even when they know that the cuts that are being made are, despite all of the grandstanding and soundbites from the Labour Party and its mouthpiece, the BBC, tiny, and represent barely a scratch on the surface of the bloated beast that is state spending.

So, if you are a conservative, what can you do?

In the USA, the Tea Party represents a more conservative option.  They are touted as a divisive 'faction' within the Republican Party but I sense that they are actually a far greater influence than the 'old' Republican establishment yet understand.

For UK Conservatives?  I couldn't recommend UKIP, though their policy on the EU - offering a straight In/Out referendum is sound.  Their other policies, seem quite limited and seem to have patches of socialism running through them.  In fact, I would go further on the UKIP EU policy and say that this is the right one.  I don't think that the EU can be reformed, I do not believe there is the political will to do so.  For evidence refer to Francois Hollande's comments last week.  Still though, for me, UKIP is a one-trick pony. 

I think what is needed is a UK Tea Party - or a Tea Party done in the UK style.  That is, Conservative Associations adopting candidates that understand what being a conservative means.  That understand the need for a complete re-alignment of the social contract between government and the governed, with power and responsibility moving from the former to the latter. 

Of course this will take time but when you see people like Tim Yeo being de-selected by his constituency association, one lives in hope.

Please pass this post on to any Conservative Party members that you know and tell them that the future of conservatism lies in their hands.  All of us need to get active and breathe new life into the soul of conservatism and to use every opportunity to roll back the frontiers of the state and state control. 





Friday, December 28, 2012

The UK needs a 'fiscal cliff'

There is much talk about the 'fiscal cliff' that is facing the USA.  This refers to the tax increases and spending cuts which come into effect on January 1, 2013 unless some action is taken to repeal or amend the relevant legislation.  The aim of the original legislation was to require the US Congress and Administration to address the ever increasing budget deficit and US debt.

As one would expect, politics has intervened and a game of fiscal chicken is now underway.   The Democrats, buoyed by the results of the presidential election think they have a mandate to tax more and not cut expenditure.  The Republicans seem to be trying to reach a compromise which reduces the level of tax increases but still has some expenditure cuts.  As so often with Obama, though, there is a lot of talk and no real action.

However, I was thinking that the UK needs its own 'fiscal cliff'.  So, for that matter does Europe but let's stay with the UK.

As a nation, we need to face-up to our situation.  Forget all the rhetoric about 'responsibly' cutting public expenditure from the Tories or 'swingeing' cuts from Labour.  The reality is that public expenditure is not being reduced by any meaningful level.  There will be all the usual suspects lining-up to defend the 'steady as she goes' approach and saying too much has already been cut etc., but the plain and simple truth is that the UK, as a nation continues to live way beyond its means.

It won't happen, but here is what I think we need.

First, a Chancellor that is focused on the UK economy not one who always has his eye on the electoral impact.  I hesitate to say this but someone like Ken Clarke was, after 1992.  Someone that builds the economy for the economy's sake and damn the electoral consequences - hence the Labour landslide of  1997!!  My belief is that Clarke's insistence on something approaching fiscal rectitude, gave Labour a 'golden legacy' and the Tories defeat!

Second, honesty as to the course of action that is to be undertaken.  Tell it like it is.  I know that sounds incredibly naive but some Britons are actually grown-ups.  They are having to deal with their own fiscal cliff and managing and struggling to do so.

Third, demonstrable cuts across the board.  Yes that includes the 'sacred NHS' .  Demonstrable?  How about a 15% cut in expenditure for ALL departments.  Zero based budgeting.  What did we spend in the last 12 months?  That number less 15% is what we spend in the next 12 months.

Fourth, cease payments, within 60 days, to the EU.  Simply stop.  Make no further payments until, CAP is abolished, until the books are audited and approved, until the EU bureaucracy is reduced by at least 50%.  Until.............  the whole damn place is under control and that means democratic control - not political appointees.  No more money until all of the above is achieved.

Fifth, cut overseas aid.  Make all overseas aid actually only 'in kind' and only is UK manufactured products.  Any 'on the ground' costs must be met by the recipient nation.  End all overseas aid to India, China and Brazil, immediately.  I read today that the average age of retirement, in Brazil, for private sector workers, is 53 years of age.  Makes Greece look miserly!

Sixth, instruct the NHS and other public institutions to initiate immediate discussions with their Private Finance Initiative  (PFI) providers and the starting point is a dramatic reduction in the payments that are to be made under these agreements.    If not, the NHS Trusts to declare bankruptcy.  Who exactly do we think holds the whip hand?  The NHS, who can make use (or sometimes misuse) of the relevant facilities or the financing companies?  What will the latter do with bankrupt hospitals?

Seventh, and we are back to # 3 make the cuts even more demonstrable - abolish a complete government department.  The Department for Energy and Climate Change would get my vote for abolition, along with the Welsh Office and the Scottish Office - I know that's three and I am in danger of fuzzy maths but.....   All of the displaced personnel to receive redundancy pay in line with the statutory limits - so not the usual 'golden parachutes'.

Eighth, Cut support for local government by 25%  - This will lead to a decline in employment opportunities for 'diversity officers' and LGBT empowerment posts but we will just have to get by.

Nine, 'means test'all benefits,  Welfare should be a 'safety net' not the lap of luxury.  And yes, 'means test' including those for pensioners.  Why should a pensioner get free bus pass?  Or a winter fuel allowance, if they don't really need it? 

Ten, abolish the so called 'green taxes' that have been imposed upon all energy users and go 'hell for leather' to promote shale gas exploitation.  This will require ignoring the lies from the BBC and Greenpeace but at least, if # 7 is followed, there won't be anyone at the Cabinet table pushing these lies and distortions.

As I said at the outset, it won't happen but it was nice to get this off of my chest.  Instead the UK will slide towards IMF bailouts and austerity much like the above but it will be administered by 'foreigners'.  And we will have the usual bogeyman of bankers to blame, so that's all right then!!

The USA has a chance to turn back from the financial abyss but politicians being what they are, the problems are as likely to be kicked down the road over there, as they are in the UK.




Saturday, August 4, 2012

Gay Marriage - again

The BBC posed a question  recently ' Is Gay marriage an election issue'?

I think yes.

I suspect  that returning to this topic will unleash the ignorant comments I have seen in the past but this needs to be said.

Why do I think yes? 

Firstly, I believe that some voters, who otherwise are indifferent, will wonder just what is going on.  When Britain is in the depths of recession and economic gloom and, while there is a realisation that 'so called' austerity cuts need to be made, folks will wonder why the people, who they have elected, choose this moment to spend their time, not addressing the 'bread and butter' issues that affect the man in the street, but instead pander to a vocal minority.

Secondly, voters will ask, as I have done, why do homosexuals feel that they need to have their unions called marriage?  People know and, like me, reckon that the 2004 Civil Union act, which afforded homosexual partners equal rights on a whole range of issues.  So why the need for further legislation?  OK, right-on pandering might be a reason but really?

I believe voters will see through the government's meaningless promises that 'no religious organisation will be compelled to offer marriage to homosexuals on religious sites'.  Everyone knows that this is rubbish and that before the ink is dry on the legislation, the homosexual advocates, for whom no amount of progress is ever enough (until perhaps homosexuals are in the ascendancy and heterosexuals are a down-trodden minority), will be pushing for marriages to take place in churches and claiming all sorts of 'human rights abuses' when they are denied.  We have seen this all before.

Christians certainly need only look back to the Abortion Act of 1967.  When this was passed the impetus was to close down 'back-street' abortionists and care for the people who would receive abortions.  These women were to be rape victims, women with social or mental  issues etc.  We were assured that there would be no 'abortion free for all'.  We know the truth to the lies peddled by the politicians of that time (led by the bill's author Lord David Steele (of the Lib Dems parish) and can see these in the ever soaring number of abortions being performed in the UK

I actually think that this proposed legislation and the phony consultation that is being conducted ('we are consulting about the legislation but we will pay no attention to any comments that we receive!') may have a negative effect or backlash against homosexuals.  Instead of just saying 'enough is enough' people might just say ' this shows we have already gone too far' - something similar to what is happening in people's response to the EU

Please feel free to comment but please try to answer the question 'What do homosexuals achieve by calling their commitment to each other a marriage rather than a civil union?'


 

Wednesday, February 15, 2012

Cash handout or more QE

Just recently, the Bank of England issued a further £50 billion of money in what is known as Quantitative Easing.  As far as I can ascertain this is the BofE simply printing money.  The BofE then used this money to buy debt issued by the Government.

As a means of stimulating the economy, I don't see it.  Much of the money that the government raises, in this way, then gets spent on the inefficient Public Sector part of the economy.

As an alternative, would it not be better if every taxpayer received a one-off payment of £1,500 to £2,000 through their pay packet?

I am sure that were such a step taken, then some would be used to pay down personal debt and some would be saved but I am confident that a sizable portion of any such payment would get into circulation in the general economy - in other words, people will spend it.

What do you think?

 


Wednesday, February 8, 2012

Your Choice - National Interest or Political Opportunism

Which would you choose, if you were a politician?  Go for the quick soundbite and a 30 second slot on the Six O'clock news or do what's right, in the interest of your country?

Consider:

You are a finance minister and there is a global banking crisis with confidence in the whole economic system, on a knife edge.  The Finance Sector is a major component of your country's economy.  The largest bank in your country faces insolvency and this would have a catastrophic effect on the whole financial system.  A major contribution to this particular local  situation is that this bank over-stretched itself with an overseas acquisition but you worry that the light and 'hands-off' regulatory systems, that you allowed to exist, might also be a contributory factor.  

So you inject a very significant sum of taxpayer money, into the bank and take a substantial shareholding.  You decide that it would be best if the semi (largely) state-owned bank be managed at arms length rather than become part of any ministerial portfolio, though you do push for the exit of the bank's CEO.  You put in place such an arrangement for the management of the taxpayers investment.  You, along with the bank's board, negotiate with a suitably qualified banking executive.  Someone not caught up in the immediate crisis but who 'made his bones' in banking.  You agree contractual terms and set targets etc. and then step back.

Get into your personal Tardis

Now Fast Forward 2 years


You are in opposition.  The recent election sees the electorate lay a charge of economic mis-management, at your party's door and they kick you out of office.  However, they are swayed by the charm and rhetoric of a smaller party and so the election result is that this minor party gains a seat at the big table and participates in the coalition government that is formed.


Back into your personal Tardis

Fast Forward 2 years

In spite of the government initiating austerity cuts, your party is languishing in the polls and many lay this at the door of your lacklustre leader.   The earlier mentioned banking executive is making good progress at the bank and achieving the targets that are set for him, by the Board of Directors.  Under the terms and conditions of the contract of employment, which you and your colleagues either directly negotiated or approved, he is entitled to a performance related bonus.  The government that succeeded yours, imposed a blanket ban on large cash bonuses and so the bulk of his bonus must be in shares that vest over a period of term.  Technically that may be a breach of his contractual terms but he doesn't complain - he is in it for the long run.

Do you as an opposition MP or Shadow Cabinet Minister throw hypocrisy to the wind and use the compensation package that your party agreed to, when in power, as a stick to beat the recently elected government, or do you support the individual that you selected and find the words to placate the mob whose fury has been whipped-up by a sensationalising media?

Consider also.

You are part of the newly elected government.  The majority political philosophy is founded on the support of trade and business and less intervention from government in the business sphere. 

Given the above scenario, do you
Support the executive and say that his compensation is a matter for the Board of Directors? Pointing out, as you do so,  that the employment contract was negotiated by the previous administration.  Also that by forcing boards to ignore legal contracts we bring into question the foundations on which our society is built!

Do you throw the executive to the baying mob, pressure him into forgoing the bonus, while at the same time pointing out that the employment contract was agreed by the previous administration, etc..  At the same time ignoring the risk to your party's and your country's reputation.


Now
  • Answer this as if you were a UK Labour politician

  • Answer this as if you were a UK Conservative politician

  • Answer this if you were a UK Lib Dem Politician 

and finally

  • Answer this if you are just a decent UK citizen, who, maybe doesn't understand the complexities of the financial system nor why all of these bankers seem to get such large salaries and bonuses, but think it is important that the UK doesn't get a reputation as a place where contracts are agreed and then ignored.  In short, someone with decency and a moral code that isn't swayed by the slightest of political breezes.