An economy which has to give welfare to those in work effectively subsidies rich corporate companies who refuse to pay their employees enough to live upon.

If you feel that our economy is failing the poorest in our society and underinvestinging in our vital public services then read on and have a look at the link below to a video from the Tax Justice Network:-

www.youtube.com/watch?v=qcWr3Yad2WY&feature=youtu.be

If you think our economy reasonably and fairly distributes wealth, provides excellent public services and looks after those who are less fortunate then surely you’ll not have read this far. But if you hold such views and have got this far and even looked at the video you’ll probably be spitting feathers by now!

Now you may be not be surprised to learn that this old Social Liberal and former trade union officer thinks the video actually hits a very important nail squarely on the head.

The fault-line in our economy is oft pointed at as starting with Thatcherism and has been developed by every government since. To quote a phrase from the video we have been on ‘a race to the bottom’, in my view, for 40 years or more. In that time the poor in comparison with the super-rich have been progressively getting poorer as the economic gap has widened as a direct consequence of governmental policy.

I don’t expect you to agree with me if you have done well out of an economic system designed to do what it has done unless of course you have a social conscience as well as wealth that is.

What I like about the video is that it paints a picture which makes it very clear that our political classes across all the major parties have bought into the economic structures which have delivered the the state we are in. The capitalist model is now being run globally in an extreme form which only benefits massive corporations and our politicians, across the political spectrum, have made it happen. It’s no use jumping up and down about the evils of Thatcherism as many are prone to do when we have have been voting for alternative supposedly progressive parties which have effectively been delivering versions of the same thing!

What the video does not address though is that moving forward our capitalist system is going to have to change fundamentally to combat climate change and the our climate crisis. Investing in oil and coal for example will have to stop in favour of renewable energy and it will require governmental action to make this happen. Just look at Australia, a country literally on fire but which mines massive amounts of coal on which its economy is very much reliant and which is the direct cause of its present and indeed future environmental crisis!

In my view the economic/social model which works well is that used in differing ways across the Scandinavian countries.

Liberalism and socialism go their separate ways in two specific areas I might add. Liberals believe in individual freedom (with responsibilities of course) whilst socialists believe in the collective/authoritarian model with policy being decided centrally and handed down to people. We also promote very different economic models as Liberals will back individual freedom to invest and innovate whereas socialists will want to centralise economic policy controlling most if not all aspects of investment and innovation. What we seem to have under our present economic model is actually too much freedom to invest irresponsibly and against our wider environmental and social interests with too little governmental guidance and direction especially when it comes to the environment and the distribution of wealth.

If you are comfortably off you may well be spluttering into your coffee having got to the end of this posting!

My thanks to Stephen Hesketh for the lead to this posting.

One thought on “An economy which has to give welfare to those in work effectively subsidies rich corporate companies who refuse to pay their employees enough to live upon.

  1. Stephen Hesketh says:

    Agree with every word of this Tony!
    Freedom, fairness, equality and sustainability are key drivers in Liberalism as is spreading wealth and power. Liberals can not credibly support these values in all spheres (as we do) but then exclude them when it comes to poverty, social justice, the economy, wages, taxation and related areas.
    P.S. thank you for the mention!

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