Tag Archives: Donald Trump

Time for change: junk the Anglo-Saxon model* in 2018

The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.

It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.

Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”

He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.

He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.

Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.

The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.

A step forward?

In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:

  • In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
  • This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
  • We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.

But first give hope to many by electing a truly social democratic party.

Is the rainbow suggesting a new party logo?

*the Anglo-Saxon model

 

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New Economics question: is there a socially just, green, internationalist and small ‘c’ conservative form of protectionism?

trump-carrier

There was widespread media coverage of American president elect Donald Trump’s appearance at the Carrier furnace factory in Indianapolis, marking a deal to stop the company from moving hundreds of jobs to Mexico and threatening “consequences” for companies that relocate offshore. He also exerted pressure on Ford who backtracked on opening another small plant in Mexico.

Whilst understanding the welcome for more local jobs, Margaret – at a recent meeting of the West Midlands New Economics Group (WMNEG) – wondered if any deeper thinking would take place, “Or will Ford continue to make the ‘gas-guzzlers’ which are damaging the health of human beings and the planet?” Ann asked if there were different forms of protectionism and has decided to look further.

Colin Hines presents a detailed alternative – ‘progressive protectionism’ – which will be the focus of a future WMNEG meeting. As he wrote in the Guardian:

There is a left, green alternative that could effectively challenge the rise of the extreme right, while giving voters hope for a better future. In my new book ‘Progressive Protectionism: Taking Back Control’, I detail why progressives should endorse the controlling of borders to people, capital, goods and services, but not as occurred in the 1930s, when governments attempted to protect domestic jobs while still wanting to compete and export globally at the expense of others.

Progressive Protectionism, by contrast, aims to nurture and rebuild local economies in a way that permanently reduces the amount of international trade in goods, money and services and enables nation states to control the level of migration that their citizens desire . . . championing policies geared to achieving more job security, a decrease in inequality and protection of the environment worldwide.

corbyn-eu-socialist-leaders

Hines would urge Jeremy Corbyn to use his undoubted popularity with European socialist leaders, at next month’s London meeting of European socialist parties, to discuss how all EU member states can cooperate to reverse the present political, social and economic instability that haunts the whole continent.

He calls for a beneficial treaty replacing the outdated, discredited Treaty of Rome, which is increasing economic insecurity through austerity, relocation of businesses and the rapid migration of workers: “This should prioritise the protection and rebuilding of local economies and so provide a positive answer to voters’ concerns. To achieve this, a debate needs to be started about why Europe needs a progressive protectionism to replace the increasingly discredited Treaty of Rome with a Treaty of Home Europe-wide”. Cross-border issues such as responding to non-European migration, climate change, pollution, crime and military security would still of course require intra-European cooperation”.

He will be speaking on this theme at various events, including one meeting on 22nd April in Birmingham

 

Colin Hines is the convener of the Green New Deal group and for ten years, co-ordinator of Greenpeace International’s Economics Unit. His latest book, ‘Progressive Protectionism‘, was published in January 2017. It details why and how groups of regional nation states and their communities should join together to reintroduce border controls to protect and diversify their economies, provide a sense of security for their people and prevent further deterioration of the environment. He is also author of ‘Localization – A Global Manifesto‘. This may be bought in hard copy or read on computer/Kindle via the Amazon website. Those who avoid Amazon may like to read the assessment of corporate tax avoidance by lawyer Marc Wadsworth, here.