Here I am continuing outlining 6 reasons why they are big and you are small, a vital part of the Neo-liberal story, it is important we understand this. From their point of view it means we are weak and they are strong, it’s how they extract their tribute and rents.
Market Solutions. This follows on neatly from small government because there is nothing that can’t be made worse than interference by the state, once again there is an element of truth in this but the main purpose it serves is that it implies nothing should be done by the state because market solutions are often better. Once again this can be be true but is there a market for everything? Noah Smith doesn’t think so, in fact almost none of the things most valuable to us have no market at all. A few examples include love and dignity but please read the post, it’s beautiful. Noah is an American professor of economics and writes well above anything I have to contribute. So now we know markets are not everything.
But they are vital to the way we live and because they are vital they must be regulated because markets always tend to monopoly and/or collapse. There is an all out internet war going on about the state of economics and what the economy actually is. The Neo-liberals are in doubt at all they are the economy and what’s more they want that written into international law. And what’s even more they are demanding the right to sue governments who prevent them from being the market via ISDS contained within the doomed, for now, TTIP agreement, something for a seperate post but the basics are here . The arguements for and against regulation will be forever with us because economies are dynamic and ever changing. This is why it is so important for more people to become engaged and involved. You are the market and democracy is your tool to have your say.
Balance Budgets. If only I could find the clip of that guy on Question Time in a state of bemused pleading to the panel “look guys how hard can it be just spend what you earn”. There is a simple neat and concise explanation for everything the problem being it’s almost always wrong. It’s not only a stupid proposal for a person, it’s sheer insanity to suggest it for a fully sovereign state that is the monopoly issuer of currency. On a personal level try buying a house or university education with what you earn. At state level what would you do if you pretended to have run out of money? Just stop spending? Good luck with that.
A simple way to look at it is to imagine you had a printing press in your house. Would you live on three bowls of gruel a day and stay huddled in blankets all winter when you can print money anytime you want? I suspect you’d print at least enough for the odd treat or two. There are times, at both personal and state level where running a balanced budget is impractical and wrong. The important point is can you service that debt? On a personal level it’s up to you you balance or go bust. At a state level you run a deficit which is a perfectly normal and, more often than not, desirable. Neo-liberals use Big Scary Numbers about state debt to scare you. Ben Chu de-mystifies those numbers here.
The Wealth Creators. This is my favourite part just who are the wealth creators? Lord Digby Jones is in no doubt about who the wealth creators are.
“Where Corbynomics gets it all wrong is that communities need private sector wealth creators; people who take risk & enjoy the rewards. They are not the enemy of Society, they are an essential ingredient”
Very fine words indeed but I simply don’t agree with his description of “wealth creators” because it doesn’t fit the facts. Let’s just compare his achievements to mine first. He is a former Director of the CBI, a well established TV personality, phenomenal businessman and a massive contribution to public life. Me? I write a small blog and take what I can in the gig economy. I disagree with Lord Jones very respectfully, indeed I agree with that whole statement highlighted above except for two words, wealth creators. Good businessmen are wealth harvesters for want of a better expression. They maximise existing spending power and in doing so create additional demand to the economy by way of wages and any debt they they incurred. Wages give the earner an opportunity to create wealth for the reciever but come on, the wealth from the operation goes with ownership. I’m fine with wage creators just not wealth.We need wage creators like never before so thank you.
The true wealth creators are wage earners, we have the cash flow that make your businesses thrive because you have awesome ideas and create the things we want and services we need. It is at this point I would urge everyone to spend 20 minutes of your lives watching this Nick Hanauer Ted Talk. This man grasps how capitalism really works and it’s the opposite of Neo-liberalism.
I have listed 6 reasons in the past two posts that lay down the principles of how to run a successful state according to Neo-liberals. Well guess what? It’s never happened, there are no examples, not a single one. Those six principles are merely the blueprint for how to hijack an already successful state.
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