Tag Archives: Economics

Is Utopian PostCapitalism post-NATO post-Brexit Society Possible?

Economics & Society – the next big ‘ism

I hate ‘isms, whether capitalism or communism, neoliberalism or even postcapitalism. I also dislike ‘ities, whether cities or christianities – for there are thousands of incarnations of both. I prefer the land and environment of the countryside, not high-rise development living on top of each other, aspiring to the penthouse apartment, swarming like bees to a square mile of golden honey, gold handshake, gilded lifestyle of the 1 per cent. History has led us ever closer to each other in terms of where we live, with population expansion and the pressure to move towards the capitalist and industrialist means of production. Will the age of the Internet allow us to live out self-employment part-time creative dreams?

Norfolk Peoples Assembly Anti-Austerity Demo, Norwich Haymarket, 30 May 2015
‘Inequality’ – Norfolk Peoples Assembly Anti-Austerity Demo, Norwich Haymarket, May 2015

The EU – Peace & Prosperity in our time?

Will modernity bring or sustain peace? The European project, the EU, has been an ever expanding union in terms of peace, even prosperity perhaps, until the crash of 2008/9 affected us all as we shored up banks and capital but not people and livelihoods. Whilst the UK marginally voted to leave the European Union, assuming “Brexit means Brexit” as Theresa May so simply and yet evasively said, it is undeniable that however lumbering a bureaucratic behemoth ‘Brussels’ is, it has been on balance a force for good. The UK, well England in the main, recoiled nonetheless against ever increasing fiscal and foreign policy union.

NATO – “One for all and all for One”?

As with a nuclear “deterrent”, have defence pacts really saved us from wars? Arguably, NATO‘s 28 nations are neither at war with each other and would, in theory, defend each other against external aggression. In principle, at least, for Jeremy Corbyn has expressed his doubts and previously said that NATO only furthers capitalist self-interest and has had its time.

“I don’t wish to go to war. What I want to do is achieve a world where we don’t need to go to war, where there is no need for it. That can be done.” – Jeremy Corbyn

Who can disagree with that? Yet, the media focus is on the possible breaking of NATO Article 5 pledges instead. His words are idealistic rather than realistic but where would we be without ideals?

Capitalism and PostCapitalism?

In his 2015 book, Postcapitalism, Paul Mason argues, along with the OECD, that “the best of capitalism is behind us” and that with decreasing returns for the many inequality will rise 40%, as the few batten down the hatches. What lies beyond a breaking capitalism, not neoliberalism, for sure.

“Is it utopian to believe we’re on the verge of an evolution beyond capitalism? We live in a world in which gay men and women can marry, and in which contraception has, within the space of 50 years, made the average working-class woman freer than the craziest libertine of the Bloomsbury era. Why do we, then, find it so hard to imagine economic freedom?

Postcapitalism - Paul Mason, Penguin 2015
Postcapitalism – Paul Mason, Penguin (2015)

… All readings of human history have to allow for the possibility of a negative outcome… But why should we not form a picture of the ideal life, built out of abundant information, non-hierarchical work and the dissociation of work from wages?

Millions of people are beginning to realise they have been sold a dream at odds with what reality can deliver. Their response is anger – and retreat towards national forms of capitalism that can only tear the world apart. Watching these emerge, from the pro-Grexit left factions in Syriza to the Front National and the isolationism of the American right has been like watching the nightmares we had during the Lehman Brothers crisis come true.

We need more than just a bunch of utopian dreams and small-scale horizontal projects. We need a project based on reason, evidence and testable designs, that cuts with the grain of history and is sustainable by the planet. And we need to get on with it.” Paul Mason

Putting the Human where Capital once was

Norfolk Peoples Assembly Anti-Austerity Demo, Norwich Haymarket, 30 May 2015
‘No Cuts’ – Norfolk Peoples Assembly Anti-Austerity Demo, Norwich Haymarket, 30 May 2015

Humanism begins well, with human, but ends in another ism. An upside down society, as suggested by Jesus, where the last are first, the migrants welcomed, the poor ‘last hour workers’ paid well, the sick, disabled or mentally unwell treated with care, dignity, and respect, is possible. If, we choose to create it.

But it takes an ‘us’ not a ‘me’. So many recoil at immigration because of a perceived threat to self, status, employment, a drain on health or schooling. Yet migration is what history and evolution are all about, the development and expansion of humanity. Again, like humanism, humanity puts human beings first and then ends with an ‘ity’, another intangible unified concept, a utopian ideal that lumps us all as one, without recognising our differences, diversity and distinction – the very things that when accentuated create mistrust and tribal misanthropy.

I prefer the word humankind, for it is only in being kind, being kindred, perpetuating random acts of kindness towards our fellow human beings – recognising their ‘being’ and right to ‘be’ that we can coexist, cooperate and create a humane society together.

Economists for and against Brexit. Why don’t we believe the numbers? Lies?

Lies, Damned Lies and Statistics Economics

Economics can be studied as a BA or a BSc, with the latter having more Maths and Econometric elements. The point I’m making is that Economics is a dark art and an arcane weird science akin to alchemy, it is not a perfect predictor of the future, but on balance it makes sense. People are the irrational unpredictable factor. Nonetheless, a group of 200 Economists is in favour of Remain and 27 Economists for Britain, and a further smaller ensemble of 8 in favour of Brexit (3 are in both lists). No doubt there are other groups that would bolster both camps, you can add my BSc (Econ/Stats) to the 200 camp. In addition, ten international winners of the Nobel Prize in Economics have warned against Brexit and nearly every international economic policy thinktank and institute. Even the Brexit economists accept they are the minority:

“I do not deny for a moment that there are more economists who write on blogs and in newspapers arguing against Brexit than in favour. Furthermore, opinion polls suggest that most economists believe Brexit would be damaging.”

The verdict, then? People trust economists about as much as they trust politicians and journalists! The polls are roughly 50:50 at the moment with less than 48 hours to go, but with a consistent 15% of voters undecided, who may or may not vote, or who might change their vote.

£350 million a week or £60 a year?

Polls show that the majority of people actually believe the £350m/week claim (around £252/year each) of the cost of the EU which is a blatant half-truth in that it totally ignores the UK rebate, inbound EU benefits and investment, EU jobs creation etc, which by other counts brings the cost down to about £1.15 a week. Less than a cup of coffee – the cost of reciprocal EU health and travel benefits, improved worker rights, gender equality and human rights agendas, and multicultural diversity benefits – cited by a CEBR study as a cause of UK economic growth and investment attraction. £350m a week has been consistently debunked by the BBC, Channel 4, The Guardian, The IndependentInFacts, the New Statesman, and the head of the UK Statistics Authority who says it is closer to £110m, yet people still believe it.

Brexit EU 350m Bus Poster Claim
Brexit EU 350m Bus Poster Claim

One thing, for sure, is that we don’t send £350m a week to the EU. What the net contribution of the UK to the EU budget is, after our rebate, grants, subsidies and other receipts, sources cannot be sure but vary from £83m – £164m, minus just the rebate it is around £248m but that ignores other benefits:

UK 'Net' Contributions to EU Budget

SourceCost per week
Vote Leave£350m
FullFacts£248m
The Independent£188m
New Statesman£164m
BBC£161m
The Guardian£136m
InFacts£120m
UK Statistics Authority£110m
Channel 4 (IFS)£83.33m

£4,300  a year cost or £3,000 a year gain?

The figure on the cost of Brexit ranges from £300-£4,300 to Armageddon per family, so it is not as if either side are clean of the putting a spin on the figures. The CBI actually says that we gain around £3,000 per household from EU investment, trade, jobs and lower prices across Europe. That £3,000 a year gain (or rather, status quo) more than offsets the £200-£300 a year cost per household.

Fear, Hate and Scapegoats

Few believe, however, neither the allegedly independent academic facts nor the financial fearmongering of Vote Remain, instead preferring the demonising of the EU. They quote ‘figures’ alleging that the EU sucks us dry financially, that we are supporting the sick economies of Europe, and financing the health and benefits of millions of migrants. Neglecting the costs that 2 million Brits living in Europe run up! You see, Vote Leave‘s fearmongering is combined with scapegoating – someone to blame, that is its increased ‘sell’ factor, its USP.

The irrational human factor, always the bane of economic theory, is that we seem to need someone to hate, someone to blame. In this case, it is the EU, some kind of nine-headed Hydra, the Beast of Revelation, the government of the AntiChrist, German federal dominion redivivus, or fresh French neo-Napoleonic invasion, not to mention an influx of ‘begging and thieving gypsies’ – as some have erroneously and xenophobically characterised Romanians and Bulgarians, not to mention an entire nation of millions of Islamic terrorist Turks – Turks who are more likely to be victims than perpetrators of ISIL violence.

This may partially explain why people are predisposed to believe only the figures that reinforce their preexisting views and beliefs – much like religious argument!

It has not gone unnoticed that some of the poster campaigns and political assertions would not have been out of place in the 1930s Nazi Germany.

Breaking Point the EU has failed us all, UKIP, Vote Leave, EU Referendum
Breaking Point the EU has failed us all, UKIP, Leave.EU, EU Referendum

Bigger Lies more likely to be believed

A “big lie” or famously the große Lüge was a Nazi propaganda tool first put forward by Adolf Hitler in Mein Kampf (1925) suggesting that if a lie were so “colossal” nobody would believe that someone would have the “impudence to distort the truth so infamously.”

“…in the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.”  — Adolf Hitler, Mein Kampf, vol. I, ch. X (tr. James Murphy)

Goebbels took the theory further, and even cited the English in his development of it!

“The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, one should lie big, and stick to it. They keep up their lies, even at the risk of looking ridiculous.” – Aus Churchills Lügenfabrik (“From Churchill’s Lie Factory”), Die Zeit ohne Beispiel, 12 January 1941

When even opposite minds agree

It should either be seen as really worrying or oddly reassuring that the leaders of all the parties except UKIP and other further far Right political entities are in agreement that we should not leave. For Jeremy Corbyn and David Cameron to agree is a sign of institutional panic, and Corbyn is normally anti-institution. The dilemma is that people see Vote Leave as, as much a vote against the EU as against Politicians of all hues. Cameron is seen as dodgy Dave but Farage as normal Nigel, the honest speaking man of the people. It’s not just the Sun readers who believe its barely researched economic claims that Brexit fears are “nonsense” but also the entrenched traditionalist views of 75% of the Daily Telegraph readership.

The EU Referendum is not about those who have already made up their minds, but those who have yet to decide, for they will determine the UK’s fate on Thursday. Whether they will listen to 9 out of 10 economists, Richard Branson, and David Beckham, in favour of Remain or the 1 out of 10 economists, Boris Johnson, and Nigel Farage, we will see then.

More EU Referendum fact checking sites

BBC Reality Check & Live updates
BBC EU Referendum key claims round-up
Channel 4 Fact Check
Full Fact, independent fact checking charity
Katy Jon analysis

Highest Numbers Ever on World Refugee Day as Humanitarian Crisis Escalates

World Refugee Day, Record Numbers

Refugees from “forced displacement” recorded worldwide in 2015 numbered over 65 million according to UNHCR, the UN Refugee Agency. That’s nearly 1% of the world currently homeless, nationless, fleeing wars, terror, persecution and the slow death and disease of refugee poverty from relying on handouts and the generosity of others, NGOs, international aid and agencies. So far, this year, over 3,500 have died on their migrant journeys to apparent safety. World Refugee Day highlights the plight and peril of people seeking safety amidst an escalating humanitarian crisis.

“At sea, a frightening number of refugees and migrants are dying each year; on land, people fleeing war are finding their way blocked by closed borders. Closing borders does not solve the problem.” – Filippo Grandi, UN High Commissioner for Refugees

Refugees & Migrants are People Too!

But numbers, percentages, records, are not facts or statistics, they are people too. They are not just migrants, often prefixed with the dehumanising word “illegal”, or trafficked by exploiters and transporters of vulnerable people with nothing left to risk except their life itself. They are desperate migrant peoples, refugees, asylum seekers, human beings, not cattle or ballast to be bounced around from port to port, dragged back out to sea, or denied entry based upon the decision that they may harbour an ISIL terrorist.

It’s a humanitarian crisis because they share a common humanity with the 99% of people that have settled homes and domestic security. Whilst 1% of the world control half its wealth, another 1% don’t even have a dollar a day because they are stateless, which in some countries means they officially don’t exist, being without permanent address or social security numbers. 50% of the world has access to just 1% of the world’s wealth. Global economic disparity and inequality are an injustice demanding those that have, to aid those that don’t. It’s a moral crisis as well as a humanitarian one.

Definition of a Refugee

Article 1 of the 1951 UN Convention relating to the Status of Refugees, as amended by the 1967 Protocol, defines a refugee as:

“A person who owing to a well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, is unwilling to avail himself of the protection of that country; or who, not having a nationality and being outside the country of his former habitual residence as a result of such events, is unable or, owing to such fear, is unwilling to return to it.” 1951 UN Refugee Convention

Will you stand #WithRefugees?

Don't Bomb Syria Rally, Norwich, 28 November 2015 photo by Katy Jon Went
“Refugees Welcome” Don’t Bomb Syria Rally, Norwich, 28 November 2015

A Global Community & Worldwide Village

The benefits of global bodies like the United Nations and regional socio-economic communities like the African Union or European Union are that they can act as greater than the sum of their nation parts when they pull disparate national interests into international focus on issues facing the world as a whole, for which we a have a common responsibility.

Immigration and the EU Referendum

Whilst the United Kingdom votes this week to Leave or Remain in the EU, thinking little England rather than Great Britain, the world has bigger issues than one nation’s sovereignty or solvency. Immigration has become one of the most divisive issues in the EU Referendum campaign and the responses have turned ugly. Campaign posters have been called racist, Jeremy Corbyn, the leader of the Labour Party, has admitted that we cannot control EU migrant numbers, however, nor would we be able to if we adopted a Norwegian or Swiss-style model of European Economic Area affiliation rather than full EU membership.

“Immigration has overtaken the economy as the most important issue to how the public will vote…[it] is now the most critical issue, cited as very important to their vote by 33%, up five points in a month, including just over half (52%) of leave supporters…which coincides with the official Vote Leave campaign focusing more strongly on immigration.” – Evening Standard

Opinion polls consistently show that immigration is one of the key Referendum issues, but one that is closely aligned with geography, age and gender. The majority of men and people over 65 would vote to Leave and the majority of women and people under 35 would vote to Remain. It’s often the areas with the least impact of immigration that would vote most against it. Those, such as London, with the greatest cultural diversity, are more likely to vote Remain. Integration and acceptance take time but then do bring community benefits and positivity.

It’s about perception, integration, insecurity and fear. A Guardian piece included the words of Chantelle, a young mother from Leigh, near Manchester, who despite 96.% of local residents being British thought that “80%, maybe 90%” of locals were immigrant foreigners!

Controls on Immigration or Contributions from Immigration?

At the last UK election, most major political parties except the Green Party were calling for controls on immigration despite its long term benefits.

“Immigration to the UK since 2000 has been of substantial net fiscal benefit, with immigrants contributing more than they have received in benefits and transfers. This is true for immigrants from Central and Eastern Europe as well as the rest of the EU.” – The Economic Journal

A CEBR report on world economic ranking data said of the UK’s growth and dynamism:

“The United Kingdom is forecast to be the best performing economy in Western Europe … likely to overtake Germany and Japan during the 2030s … becoming the world’s 4th largest economy for a short time … The UK’s strength (though mainly in London) is its cultural diversity and its strong position in software and IT applications. Its weakness is its bad export position and unbalanced economy … It also runs the risk of breakup, with Scotland and possibly Northern Ireland seceding and will have a referendum on its continuing membership of the EU in 2016 which might prove at best disruptive and at worst lead to a more insular and less diverse culture which in turn would generate slower growth.” – CEBR

Surely, then, the UK – currently the world’s fifth largest economy, should accept a substantial share of supporting the world’s refugees rather than turning a blind eye and walking on by as the selfish ‘neighbours’ in the Parable of the Good Samaritan.

The country taking by far the largest number of migrants is Germany, down to Angela Merkel’s so-called “open door policy”. Germany is currently the fourth largest powerhouse economy in the world, aided rather than restrained by its immigration policy:

“Germany’s influx of Syrian immigrants is expected to keep the country ahead of the UK for a few further years as skill shortages are alleviated, wage growth restrained and profits boosted.” – City A.M.

EU Migrants a drain on Benefits?

EU benefits claimants are the smallest group receiving either working age benefits or tax credits, according to economic and statistical data. Some 92.5% of benefit claimants are British, 5% are non-EU immigrants, and just 2.5% are EU migrants. Whilst those from outside the EU are more likely to be on benefits than EU migrants, we have a degree of control over non-EU immigrants, albeit an international responsibility to refugees and asylum seekers. Even the Daily Telegraph which is essentially pro-Brexit said this:

“…whatever the arguments for and against reducing the number of EU migrants receiving British benefits, delivering such a reduction wouldn’t make a significant difference to the overall welfare bill…and seeing as the take-up of benefits among migrants is so small, it’s also worth asking how big of a draw Britain’s welfare system really is.”

Migration Breaking Point?

Breaking Point the EU has failed us all, UKIP, Vote Leave, EU Referendum
Breaking Point the EU has failed us all, UKIP, Leave.EU, EU Referendum

UKIP’s ‘breaking point’ immigration poster calling for a Leave vote and taking back of border controls has been compared to 1930s Nazi propaganda by George Osborne and even criticised by other Brexiters, not to mention being reported to the Police for inciting racial hatred. Nigel Farage has defended the poster even saying he is the victim of hate!

Even Michael Gove “shuddered” after seeing the UKIP migrants poster based upon a photo taken of migrants crossing the Croatia-Slovenia border in October 2015, apparently of refugees arriving from Syria – a route now all but shut. Boris Johnson, who heads the official Vote Leave campaign also distanced himself from the poster and announced he was in favour of an “illegal immigrants” amnesty for those that had been here 12 years.

Far from immigration being the ‘breaking point’ for the UK, we are cruising it compared to many other austerity-hit nations, growing off the back of net contributions to the treasury from migrants of the past and present. Migrants are far more likely to start businesses than British nationals, nearly half as likely to be on benefits, pay more in taxes than they take out, and more likely to take the jobs others don’t want to do that keep the economy growing – over three-quarters are in employment, more than their British counterparts. They are not “taking our jobs” just more willing to do them.

EU Referendum Vote Leave or Remain, Katy Jon Fact Check & BBC Reality Check

BBC EU Referendum Reality Check

The BBC is attempting to navigate an independent stance on fact-checking the statements by the ‘BrexitVote Leave and the Remain campaigns in the EU referendum June 23 Vote. This leaves most of my practical work on economics and statistics (my undergrad background) redundant and instead makes me ponder what are the emotional, personal and psychological reasons why people are in such entrenched positions, when, to me at least, the balance of economic and equality facts favour Remain.

Labour say they cannot understand why any worker would not want to Remain for enhanced workers rights. LGBT groups say something similar regarding LGBTI equalities. Yet I know left and right wing LGBT people who have vehemently opposed opinions on this. The vote will be decided on the waverers as neither campaign reaches 50% without the 10-20% undecideds, mostly women, so please research and reflect before voting. This is more important than any 5-year election, this is a 50-year, once in a lifetime decision. Don’t stay at home on June 23.

Economic Facts and that £350m a week

Both sides have accused the other of false figures, but the use of the £350m/week claim which arrived via Leave leaflet through my door again this morning leaves most to be challenged. Admittedly, in their small print they acknowledge we get some back, but they say “less than half”, the IFS and others disagree, arguing it is considerably more than half, as do BBC and Channel 4 Fact Checks.

The reality is that we pay less than £85m/week not £55m/day after rebates and other incomings. This is still a net donation to the EU, but why shouldn’t we, as the economically healthiest nation emerging from austerity, help our neighbours?  That is a global obligation in this modern world, on a broader stage than our own isle, every socialist would surely agree with a redistribution of wealth to poorer nations?

The IFS report estimates:

“the cost of EU membership to the UK to around £60 (€75) per person (per year)”

What do we get for our net £60?

Freedom of travel across Europe, a last-resort court for human, worker and equality rights issues, reciprocal health treatment, ease of settlement and benefits receipt should we retire or relocate in the EU as 1.4m-2.2m Brits have done. Inward investment, education, and scientific research might all suffer from our withdrawal.

Environmentalists argue that the EU has brought us reduced pollution and pesticide use, as well as species and habitat protection.

Whilst, not a direct comparison, non-EU Norway contributes a gross £135/person to the EU for its access to EU markets via the European Economic Area (EEA).

Norway and Switzerland Options

Aside from the Norwegian model of EEA membership and EU budget contributions – actually more than the UK’s there is the Swiss option. Switzerland is a member of the European Free Trade Association (EFTA) but has to negotiate numerous bilateral agreements and has still ended up having to agree to freedom of movement, one of the biggest Brexit issues.

“A senior Swiss official said last month that Switzerland can expect no progress in talks with the EU over migrant caps until after Britain’s referendum on EU membership in June.”

In other words, the Swiss model already costs Switzerland and they are hoping a Brexit would empower them to renegotiate a better deal on migrant numbers.

Trade & Business Costs & Benefits

Whilst EU rules and red tape are the most-cited complaints about the EU, nonetheless, a majority of SME businesses (67-78%) said the EU was a net benefit and they would vote to remain. Access to a half-billion person world’s biggest single market far outweighs any 0.4% GDP cost. Open Europe describes an admittedly worst-case “Brexit” scenario with the UK economy losing 2.2% GDP by 2030 and only gaining 1.6% if we deregulated radically and achieved better terms by far than either Norway or Switzerland. Indeed, we buy far more from the EU than we export, but that balance of trade would likely worsen with Brexit, and to keep the status quo would cost us an EU budget contribution and probably sign-up to freedom of labour movement.

“The EU is…far and away our biggest trading partner, amounting to well over half of our world exports. Indeed, we export more to Holland alone than to the entirety of the Commonwealth.”

Around half of our exports go to EU countries (44-50%), tariff-free, with trade laws that we help to draw up and at least have a say on. Even if we left, to export to the EU British products would still have to comply with EU health & safety standards.

British dairy exports might attract the 55-200% tariffs on imports to the EU. British farmers stand to lose £2.7 billion in EU subsidies.

Equality, Consumer & Workplace Laws

We may berate the EU courts and laws, but they have been a significant factor in tightening workers rights and hours, consumer protection, and especially for protected characteristic groups, champions of equality legislation. Many rights for LGBTI persons have emerged from or been challenged but upheld by European courts.

In an interview with the Daily Telegraph, Sir Ian McKellen says:

“Now is the time to be backing Europe and giving back that sense of empowerment to countries in the European Union that are still very backward in this regard. If I were to look at ‘in’ or ‘out’ from that point of view, there’s only one point, which is to stay. If you’re a gay person, you’re an internationalist. I don’t want us to retract.”

For trans people, it is even more the case, that EU laws and courts have granted improved rights and equalised protections, even if there is some way to go still, especially for intersex persons.

Since 1999 same-sex discrimination has been banned in Europe and any joining nations like Turkey would have to abide by them, the EU can raise the rights of people in nations with poorer human rights records. Same-sex sexual activity is legal in all EU states and discrimination in employment has been banned since 2000. European Court of Justice case law has often come down against the UK Gov in the past in favour of trans people’s rights since it interprets discrimination on the basis of ‘sex’ as also extending to ‘gender reassignment’. Thus, all EU sex discrimination law applies to transgender people. In 2002, the 1976 equal treatment directive was revised to include discrimination based on gender identity. Whilst not all nations have same-sex marriage yet, EU directives mean that a same-sex marriage agreed in one EU country must be respected in all others.

Nonetheless, whilst 63% of Pink News readers would vote Remain, a surprising 37% would not. Even Boris Johnson has tried to ride the pink bus for Brexit and an ‘Out and Proud‘ group has formed to favour Leave. Admittedly, countries like the Netherlands, Spain and the UK have been ahead of the EU game on many LGBT rights, but the EU has encouraged other nations to follow the trend for greater LGBT equality.

Reasons to Leave the EU?

The three issues of security, sovereignty, and immigration, are the most oft-cited Leave issues. In addition, there is the fear-competition factor of EU access to British jobs.

Migrants and Immigration

Immigration regularly raises its ugly head during elections and its control is considered the holy grail of pandering to electorate fears. The ONS says there are 942,000 eastern European working in the UK, along with 791,000 western Europeans. A combined figure roughly equivalent to the number of Brits living in Europe. A fair trade? A further 2.93m workers originate from outside the EU with China and India being the biggest source of foreign workers in the UK. In other words we have a bigger issue with the numbers we can control than the ones we can’t. It has also been suggested for years that over 3 million British jobs may depend upon EU membership and trade.

Unemployment rate in member states of the European Union in February 2016 via Statista
Unemployment rate in member states of the European Union in February 2016 via Statista

Furthermore, there is a demographic timebomb approaching, in that, even with high net migration of up to 300,000 people a year, a small city’s worth, in a decade with an aging population we would need them to fulfil available jobs. We have one of the lowest unemployment rates across Europe at around 5% compared to an EU average of 9.6%, only Czech Republic and Germany are lower and yet the latter has taken in huge numbers of migrants. A strong economy can absorb and afford migants, if not actually requires them. In addition, migrants tend to do the jobs Brits don’t want to. Long-houred agricultural, care or service sector, restaurant potwashing, jobs are invariably filled by foreign-born workers not British ‘shirkers’. Admittedly, a derogatory phrase but even in-work Brits are less productive than many foreign counterparts. France and Germany are 30% more productive per person-hour worked.

Security, Borders & Foreign Criminals

It is disingenuous to argue that the EU prevents us deporting foreign criminals. In only a handful of cases do EU courts block deportation on human rights grounds. One gain from membership is participation in the European Arrest Warrant which assists the bringing to justice of criminals across the EU. In addition, seeking to deport released foreign prisoners on the argument that they remain dangerous, suggests their sentences were too lenient in the first place, and prison reform and probation are the area of failure. Also, justice means that after a served-sentence, a prisoner is considered to have done the crime, done the time, and should be given a second chance, albeit with probation monitoring and social assistance at reintegration into society.

Iain Duncan Smith says our “open border” from staying in the EU is leaving the “door open” to terrorist attacks. Yet, recent attacks in France have meant a redoubled effort to share intelligence and prevent attacks. Security is illusory, as terrorism by its nature, usually circumvents most checks, although the British Government has already prevented and prosecuted many such attacks, all the while being in the EU. Many leading military figures say that the EU is an “increasingly important pillar of our security”.

As to preserving our UK borders and sovereignty, leaving the EU is almost certain to trigger a second Scottish referendum at which they would most likely leave the UK and commence negotiations to join the EU. Sovereignty is a false-idol and catch-22 if it leads to the break of the UK and creation of a future border with Scotland. In Ireland the border with Northern Ireland would have to close again.

Whilst we might regain control over fishing rights around our shorelines and for miles beyond, we don’t have sufficient a fishing industry any more to exploit that gain, or vessels to police incursion by other EU fishing boats.

Brexit is a big unknown, better the devil you know – and can influence and negotiate with, than an outside-EU limbo of uncertainty.

“The most likely outcome would be that Britain would find itself as a scratchy outsider with somewhat limited access to the single market, almost no influence and few friends. And one certainty: that having once departed, it would be all but impossible to get back in again.” – The Economist

Voting matters, your vote counts, but read between the campaign soundbites, slanging matches, economic promises and fears. Instead, think about the bigger picture, future development and not just apparent personal gain, which may include so much more loss, if we were to vote leave.

 

Fat Cat Tuesday about FTSE100 Bosses earning 100x more than UK workers

Fat Cat Tuesday Trending

Today sees the trending of Fat Cat Tuesday on social media platforms, accompanied by ubiquitous photos of mega moggies and fat fluffies. Unlike #Caturday, which is devoted to real cats, the hashtag #FatCatTuesday is actually about FTSE100 bosses earning more by the end of today, the fifth day of the year, only the second working one, than the average UK worker in a whole year.

In fact, they could knock off early, sometime this afternoon, having earned £27,645 – the UK average salary, in less than two working days, according to the High Pay Centre, which has labelled today ‘Fat Cat Tuesday’ and launched a compare-your-pay counter online.

Feline Takeover…

The Internet’s ailurophilic love of cats almost meant the serious social and economic point was lost amidst a flurry of furry cat-selfies:

…Back to Business

Britain’s top executives make an average of £4.96 million a year and even assuming long hours, rare holidays or weekends off, their average hourly pay is still more than £1,260, nearly 200 times the minimum wage of £6.70 and easily 200 times the wages of those who build the skyscrapers in the City of London or the nurses that treat them in A&E. Assuming they do play golf at the weekend then it is over 200 times the basic guaranteed UK wage – voted the most successful government policy of the last 30 years.

Pay inequality

These levels of pay inequality, whilst legitimate in a free society are nonetheless abhorrently unethical and unnecessary. Who needs £1260/hour to live off, that’s £20 a minute. Whatever the crime, you’d expect a lawyer charging that much would get you off scot-free. In fact, many people earning these figures employ accountants and lawyers to find ways to avoid paying taxes on their exorbitant earnings.

Scot Free

The phrase ‘scot-free‘ has little to do with the Scots and everything to do with the Scandinavians and the French – linguistically, at least. The word comes from Old Norse and French escot which came into Old English as sceot, meaning “a payment, lot, portion or share”. Some merchants and nobles were given a tax “get out of jail free” card absolving them from paying, then royal, taxes, leaving them ‘lot’ or scotfreo – ‘scot’ free.

Old English scotfreo “exempt from royal tax,” from scot “royal tax,” from Old Norse skot “contribution,” literally “a shooting, shot; thing shot, missile,” from PIE *skeud “to shoot, chase, throw” (see shoot (v.); the Old Norse verb form, skjota, has a secondary sense of “transfer to another; pay”) + freo (see free(adj.)). First element related to Old English sceotan “to pay, contribute,” Dutch schot, German Schoß “tax, contribution.” French écot “share” (Old French escot) is from Germanic. – Online Etymology Dictionary

Maximum Pay Ceiling/Ratio

Should society, or government, at lease intervene to create pay controls, for example a fixed maximum pay or flexible least:most pay ratio balance?  Left Foot Forward argues that it’s time. What would be a fair rate when NHS and council chiefs can already earn multiples of MP and Prime Minister salaries and that’s just the public sector. Even the most free-market liberal socialist would surely argue for a rate around 10-20x base wages. Actually, many are arguing for 75x which is still a 50% cut from the 133-200x reality that currently exists. Over time, it would be great to bring it down further, whilst also raising minimum pay. John Lewis already employ a 75:1 maximum ratio and employee profit share. A 2010 report recommended a maximum 20:1 ratio for public sector pay, a ratio which is mostly currently observed:

  • 19:1 in major universities
  • 14:1 in largest NHS trusts
  • 10:1 in government departments

It’s an ethical economics catch-22 whether everyone earning more is better than nobody being paid disproportionately too much, in other words should we work on raising minimum wages irrespective of maximum wages, or whether it is the imbalance itself that is the problem. There are so many small-print ways of evading a suggested or mandated pay ration, what it boils down to is that an ethical company would want to observe such a policy whether it was law or not. Fat Cat Tuesday is so shocking that it should lead to fewer fat cats and more healthily average-weight and salaried employee kittens across the board!

Fat Cat Tuesday moggy on mounds of cash #FatCatTuesday
Photo credit: Ginger the cat by KJW and miscellaneous mounds of money #FatCatTuesday