Blindingly obvious

tim — Tue, 02 Sep 2008 11:47:36 +0000

Home Office Minister Tony McNulty is correct to point out that suggesting that economic recession could lead to an increase in petty crime, violence, racial abuse and far-right extremism was a “statement of the blindingly obvious.”

Unfortunately, the minister seems to assume that the recession is an act of God and the government powerless to influence matters.

While the international downturn in trade is a reality and the knock-on effects of the credit crisis detonated by the US subprime mortgage scandal undeniable, every country will undergo its own economic experience that is dependent on specific national characteristics.

And the level of the crisis that is already hitting Britain is conditioned by the pro-business policies pursued by new Labour.

Recession will not cause the problems itemised in the Home Office draft letter. There is already huge resentment in working-class areas across Britain that will be exacerbated by rising unemployment, mortgage defaults and a general depression of living standards.

Governments tend to appeal to the mythical Dunkirk spirit to ride the wave of hardships, but that is less likely when people can see clearly that there is no equality of sacrifice.

Indeed, new Labour has made a virtue of inequality, with Chancellor Alistair Darling simply the latest leading advocate to say that he is not perturbed by the prospect of hugely differing levels of income.

And this is not simply rhetoric. New Labour has presided over a widening gap in income and wealth more akin to Victorian norms than to a supposed modern democracy.

The revelation by the TUC PensionWatch survey that top bosses can retire on average annual pensions of £200,000, 25 times what the average worker will get and 50 times more than the basic state pension, illustrates a grotesquely divided society.

Employers and managers have, in recent years, launched a concerted drive against workers’ pension entitlements, while ensuring that their own are safeguarded.

The government has acquiesced in this process, lecturing workers about their own supposed fecklessness while running down the value of the state pension.

And its obsession with leaving economic priorities to be decided by the vagaries of the market has seen Britain’s manufacturing sector inexorably eroded, with over a million relatively well-paid jobs, complete with decent conditions and a pension, scrapped and replaced by a combination of McJobs and dead-end “training” schemes.

It has claimed that there isn’t the finance available to improve the state pension, take the railways back into public ownership or invest to defend manufacturing jobs.

But it has been able to find billions of pounds for overseas wars and £50 billion to bail out Northern Rock shareholders.

The government’s wars have not only been costly but have created a new enemy – international terrorism – which is used as an excuse to cut back human rights and to increase xenophobia.

This combination of crimes against working people makes new Labour unfitted to lecture anyone on the effects of recession. It is implicated up to its neck.

The only way to avoid the negative consequences in the Home Office letter is to fight back against the economic and social policies that cause them in the first place.

Income | ukwatch.net

Blindingly obvious