The wretched way.

bowery-new-york-city

Below is the poem of the week courtesy of the Guardian from Harlem Renaissance poet Claude McKay.  Ireland settles into a second week of political campaigning for the 2020 General Election on February 8th.

In the USA Andrew Yang continues to push his model for Universal Basic Income.  For me this has to be the model for the future.  As robots relieve us of the requirement to carry out boring, disgusting or dangerous work how will we fund the lives of those who lose their jobs?  Without low level workers paying their taxes how will we fund public works?  I believe society is on the cusp of a new economic model.  Tax robots perhaps, and deliver a universal basic income to every citizen.

The old constant growth model of economics is dead.  Climate change and resource depletion are seeing to that.  But also we are seeing a plateauing of population growth.  China is concerned that their one child policy has been too effective and they need to raise their birth rate.  The Chinese are not having it.

We need a move to economic planning on the donut.  Kate Raworth’s economic model has us living in a planned band that lies between delivering on the basics for life without consuming beyond a sustainable rate.  That is a good template on which to plan the global economy.

Most of all we need to move society away from the current capitalist dystopia where the majority are exploited to serve the unfettered desires of the few.  Which reminds me that this week the World Economic Forum gets underway in Davos.

 

Harlem Shadows; by Claude McKay

I hear the halting footsteps of a lass
in Negro Harlem when the night lets fall
its veil. I see the shapes of girls who pass
to bend and barter at desire’s call.
Ah, little dark girls who in slippered feet
go prowling through the night from street to street!

Through the long night until the silver break
of day the little gray feet know no rest;
through the lone night until the last snow-flake
has dropped from heaven upon the earth’s white breast,
the dusky, half-clad girls of tired feet
are trudging, thinly shod, from street to street.

Ah, stern harsh world, that in the wretched way
of poverty, dishonor and disgrace,
has pushed the timid little feet of clay,
the sacred brown feet of my fallen race!
Ah, heart of me, the weary, weary feet
in Harlem wandering from street to street.

Modern Slavery

Prison Labour

The news broke about Florence Widdicombe, the 6 year old from Tooting, south London, who opened a box of Tesco charity Christmas cards to find a note inside:

We are foreign prisoners in Shanghai Qinqpu prison (China) 

Forced to work against our will.

Please help us and notify human rights organization.

Contact Peter Humphrey (former prisoner and journalist)

The details of the story are all over the news.  Tesco has suspended its supply contract.  But this is the third time in so many years that Tesco has been suspected of engaging in supply contracts where forced labour forms a part of the supply chain.

Tesco will tell us that they, like all other multi-national and global supply companies, regularly inspect the factories that supply their goods in China.  But anyone who knows China and the business world there can tell you that the facilities the foreigners are permitted to inspect are the model factories.  Even there the staff who work 14 hour days are warned to tell the foreign auditors that they work 8 hour days if they are asked.

We, as consumers, are trusting the global corporations to carry out these audits properly.  We do not want to confront the ugly reality that our goods are manufactured by slaves, forced prison labour, child labour and highly exploited workers.

The global corporations are breaching their contract with the consumer, because they are under pressure to deliver shareholder value.  If the “markets” take a dim view of the company they will downgrade the investment rating and the corporation will lose money.

The billionaires who own the shares in the corporations will shift their shareholdings to less scrupulous companies, who will turn a blind eye to slavery, and will win consumers with low prices.

I can boycott Tesco this Christmas, but what do I achieve?  If I take my money to another supermarket, or even to a local store, how do I know that I am not funding slavery somewhere in the supply chain?  I might even be penalising a company that does its very best to clean up the supply chain in favour of a company that does not even attempt to identify the links in their chain.

In the 18th and 19th Centuries boycotts of slave produced sugar succeeded in ending slavery on sugar plantations.  The campaigns were driven not by governments, not by the billionaires, but by ordinary people, small people who fought to make a difference.  We need to recapture that personal focus on consumption.  Our daily consumption decisions can make the world a better place for millions of people, or they can make the lives of those people a misery.

How are you spending your money this Christmas?  In your wallet, measured in dollars and cents, you hold the power to change the world for the better.  Spend wisely.

 

 

 

 

The Greek crisis exposes how the European Union has taken a wrong direction.

OXI

The European Union was founded on principles of social democracy.  Rooted in the Christian principles of “Rerum Novarum” the European experiment used to sit comfortably between the extreme worlds of US Capitalism and Russian Communism.  It offered a particular type of bargain, with protections for those at the bottom of society, and controls on rampant exploitation of people and workers.

In any politically led economic system we find politicians struggling to make sense of the complex interplay of economic factors.  A populist politician is unlikely to have a PhD in economics.  When politicians run into a capability gap they rely on specialist advisers.

Ideally these advisers should be free of vested interests, and should give dispassionate counsel.  At the most senior levels of the EU, and the respective national governments, we are seeing a different dynamic at play.

In the USA the nickname for the Treasury Dept in the Whitehouse is Government Sachs or the “Goldman Sachs” dept, referring to the large number of treasury secretaries from that investment house.  If you recruit stockbrokers to run government they create policies that favour the interests of big finance.  They push for lower corporate taxes, they cut welfare, government spending and reduce government regulation of industry.

These are exactly the forces we are seeing now in the European Union.  The post 2007 austerity programme was a philosophy designed by bankers for bankers.  For the average European the austerity programme has been a failure.   For bankers it has been an unqualified success.  The banking sector has recovered from near collapse, and the recovery has been paid for by ordinary citizens.

At last the Greeks have called time on the troika of the IMF, ECB and the European Commission.  Syriza was elected into power in Greece on an anti-austerity ticket.  That should have been a warning signal to the troika.  Instead of heeding the warning they blithely drove forward with their programme to steamroll the Greeks into paying banks back for bad loans.

The troika have tried and tried again to bully Tsipiras and his party into submission.  In response the Greek premier pulled out the most potent weapon in his arsenal “Democracy”.  He is resorting to the will of the people to gauge their support for his non-cooperation with the austerity agenda.

This does not sit at all well with the “Goldman Sachs” style banking & stockbroking mandarins who currently drive EU economic policy.  They are not accustomed to having their policies questioned even by politicians.  The concept of populist support is anathema to them.  They have no time for debt forgiveness or for wishy-washy neo-Keynesian economic policies.

The democratic prerogative should be no stranger to the politicians in the European Commission, the Council of Europe and the European Parliament. These are the people we have elected and appointed to guard the interests of the ordinary people of Europe.  These are the people who are failing.  They have given over too much power to the vested interests.

A thin understanding of economics is no excuse for the abrogation of responsibility that we see in the politicians in Europe.  The Greeks will speak on Sunday.  I expect them to come back with a resounding no, OXI!

Then we need to understand how we can help the economy at the bottom of our EU society.  This is Europe, not the USA.  This is about unification and inclusion, not about punishment and exclusion.

It is time to fix the EU model.

If you fancy an addition good read on this subject check out this link:  The Austerity Delusion