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.

Why Co-Ops and Mutuals are the way forward

I have always thought that the UK economy had wrongly left the route of mutuals and co-ops too far behind in the blind rush towards capitalism. Here’s an interesting take on how we can regain our love of co-ops and mutuals written by Richard Warren for the Lib Dem Voice web site.

The Co-Op Museum in Toad Lane, Rochdale.

The Co-Op Museum in Toad Lane, Rochdale.

Lib Dems: The Co-operatives Party
By Richard Warren
|

Theresa May’s plan to introduce worker directors onto company boards is a start, but she still has a long way to go to catch up with liberal thinking: Jo Grimond advocated worker-owned firms more than 50 years ago, and she hasn’t reached that point yet.

But the Lib Dems need to be more consistent and outspoken in support for worker-owned firms and other types of co-operatives, too. Over the decades, we’ve had the occasional burst of enthusiasm, such as when Nick Clegg called for the creation of a “John Lewis economy” in 2012, but it doesn’t appear to be integrated into our policy-making as it is over at the Co-operative Party. It ought to be for the following three reasons:

First, by supporting co-operatives we can create a coherent, credible, principled centre-left alternative to Corbynite state socialism that might help us find common ground with some Labour and Co-operative Party supporters. Significantly, the Co-operative Party is increasingly keen to distinguish itself from Labour now, and shares some of our views on key issues. As Labour MP and chairman of the Co-operative Party, Gareth Thomas, says, the co-operative movement is pro-business and pro-EU; so are we.

And, of course, by supporting co-operatives we reinforce our claim that we are now the party of business, not the Tories.

Second, mutuals work. Twice as many cooperatives survive their first five years than other types of businesses. What’s more, co-operatives are efficient providers of low rent homes and successfully develop human-scale regeneration projects.

Third, if the rise of the SNP and the Brexit referendum have told us one thing, it’s that people want more control over their lives. Looking to break-up the United Kingdom or have Britain reject collaborative working with our European neighbours are, of course, wholly destructive. Much better and more meaningful to give people a greater say over their affairs by looking for ways to extend mutualisation in more areas of our daily life: more housing co-operatives to help ease the housing shortage by providing low rent homes, and more businesses owned by their workers and even their customers to sell honestly-made goods and services at honest prices in an honest way. And, of course, to pay a decent salary.

Indeed, support for co-operatives could form part of a policy package aimed at giving people more power over their lives. Other components could include our continued support for proportional representation.

Co-operative ownership comes in many guises. Which is best, if any, is something to discuss. Companies don’t necessarily need to be wholly owned by their workers and customers: The Co-operative Party is arguing for carers, care recipients and their families to be represented on the boards of private companies providing social care, for example.

Co-operatives themselves are looking for their voices to be heard more loudly, and some feel both the Labour and Co-operative Parties have let them down in recent years. We would be doing them, ourselves and the country a service if we gave them a home in our party.

* Richard Warren is a journalist who is a member of the Liberal Democrats.