Tag Archives: Thatcherism

Let’s Talk About: The Free Enterprise Group

When Priti Patel was forced to resign last Thursday for meeting Israeli government officials without prior authorization, you may have noticed the two faces that kept appearing on television to defend her. One was Nadhim Zahawi and the other was Jacob Rees Mogg. What you may not realize is that both belong to the Free Enterprise Group, to which Patel also belongs. Prominent members of this group published a book in 2010 called Britannia Unchained, which claimed that “Once they enter the workplace, the British are among the worst idlers in the world”, and add “We work among the lowest hours, we retire early and our productivity is poor.” There is a wealth of evidence to debunk these beliefs, for beliefs are what they are. These views are not supported by evidence or anything like it.

Patel, along with Elizabeth Truss, Chris Skidmore, Kwasi Kwarteng and Dominic Raab were the book’s co-authors, and for them, poor productivity is laid at the door of the workers, not the bosses, directors and shareholders, but the workers. For these hardened free market cultists, British workers are simply too lazy and are rewarded far too readily for their indolence. This is all myth. British workers’ wages have traditionally been lower than those of their continental counterparts. Britons also work longer hours than workers in other European countries.

First, lets’ take a look at their website. You may recognize a few familiar faces.

On their ‘About’ page, we’re told that the FEG was founded in 2010 by Liz Truss, a name more associated with ‘pork markets’ than critical thinking. She’s also one of the least competent ministers in the current cabinet. That’s quite an achievement.

The Free Enterprise Group is a leading association of free-market orientated Conservative Members of Parliament. Convened by James Cleverly MP, FEG seeks to restate the importance of liberal and practical free enterprise values against the backdrop of a significant loss of confidence in free market economics following the banking failures of the late 2000s. Founded by the Rt Hon Elizabeth Truss MP, now Secretary of State for Justice, FEG is supported by over 40 MPs who want to put free enterprise at the heart of the Conservative Party.

We can therefore assume that the FEG wants a return to what they see as the ‘golden age’ of capitalism: the 19th century. Nostalgia is clearly in the driving seat.

According to capitalist rag, City AM, The FEG is “highly influential” and was “relaunched” in 2015. It is led by James Cleverly, the MP for Braintree, and has a membership of 40 MPs. Some of these MPs would claim to be successful in business, but these are rentiers, who make nothing and grow wealthy from shares and dividends. Some of them, like Chris Philp, who likes to lecture people on economic matters, is a failed businessman and a tax dodger.

While many people have tipped Rees Mogg to replace Theresa May as party leader, one must not rule out Raab,  a self-confessed Thatcherite, who has positioned himself as a dark horse candidate. I have already written about Raab on this blog. In this Guardian article from 2012, he says “The talented and hard-working have nothing to fear”. These words remind The Cat of the claims made in support of greater surveillance: if you have nothing to hide, then you have nothing to fear. Raab assumes that those he represents, the rentier capitalists of the Surrey stockbroker belt, have worked hard for their wealth. No capitalist ever worked hard: they acquired their wealth on the back of workers who worked hard for them, or it was handed to them by their rich parents via a trust fund. The same article tips Priti Patel as a future PM. The horror.

Here’s Raab being caught out in a lie about foodbanks on BBC2’s Victoria Live show. Apparently, foodbank users have a “cashflow problem”.

Raab is the MP for Esher and Walton, one of the richest constituencies in the country. He is unlikely to have met any poor people or benefits claimants. Lying is second nature to Raab and if he isn’t lying, then he’s engaging in baseless smears. Politicore spotted a typical Tory smear about Jeremy Corbyn “supporting terrorists” on the same show.

Here’s Raab advocating the privatization of the National Health Service on The Daily Politics. He’s also lying.

Raab was recently included on a list of 40 Tory MPs, who have been involved in the sexual abuse scandal. The Guardian reports:

Raab, a junior justice minister tipped by some as a future Tory leader, revealed he was named on the widely-circulated list as having been subject to an injunction over “inappropriate behaviour with a woman”.

In a statement on his website Raab warned that while it was vital to investigate cases of abuse and harassment, he feared a “media feeding frenzy” from the widely shared list, which names 40 MPs and ministers.

Any claims he had harassed anyone or engaged in sexually abusive or lewd behaviour “is false and malicious”, Raab said, adding that he had taken legal advice.

Readers may have noticed how quiet this scandal has gone since the list was published two weeks ago.

The unstated aim of the FEG is to create a sweatshop economy in which regulations are torn up because they, apparently, impact adversely on profits. One can easily see where this is going: if the FEG ever takes control of the Tory Party and finds itself in government, workers will have no rights or protections guaranteed by statute. Freedom, as articulated by the FEG is freedom for bosses to exploit workers and make themselves ever-richer on the back of labour.

Members of the FEG voted unanimously for Brexit.  According to a report called ‘Reconnecting with the Commonwealth’, co-authored by Cleverly, they want to “reconnect with the Commonwealth”. In other words, they want to relaunch the Empire as a trading bloc. The Financial Times points out this is a flawed idea and I would add that it is steeped in nostalgia. James Blitz writes:

Conservative rightwingers may feel nostalgic about a return to “imperial preference”. But until the UK signs new FTAs with the nations of the Commonwealth, Britain will be in the odd position of having worse trading terms with these countries than Brussels does. And, as Sir Simon Fraser, the former head of the UK foreign office noted recently, the damage goes beyond that. “Those EU trade agreements are vital for [Commonwealth states’] development goals,” he said. “The UK will no longer be able to champion their access to the EU market as we have in the past.

The first two paragraphs of the report’s foreword, written by disgraced former Australian PM, Tony Abbott, is also soaked in nostalgia:

Brexit means that Britain is back. The country that gave the world the
English language, common law and the Mother of Parliaments is once more
to seize its destiny as a global leader. This is an exciting time for Britain
and an exhilarating one for the countless millions elsewhere who appreciate
Britain’s unique contribution to western civilisation.

It’s good that Britain will no longer be constrained by the statism and
bureaucracy of Brussels. It’s also good that the remaining members of the
European Union will now have to rethink how much of their sovereignty they
wish to surrender.

All that’s missing from this romantic paean to free market capitalism is the call to bomb the enemy to dust.

The FEG gets its administrative support from the Institute for Economic Affairs (IEA),  a notorious free market think-tank, whose director is Mark Littlewood, a hardline laissez-faire economist who used to work for the Lib Dems. In this Guardian article, he hints at abolishing the minimum wage:

Anything that looks like a return to the Dickensian workhouse raises hackles. But I don’t want people working in sweatshops at 5p an hour. You should sell abolishing the minimum wage in positive terms, as providing young people with a first step on the jobs ladder, as a ‘jobs for all’ scheme.

Littlewood may not want people to work for 5p an hour, but like his friends in the FEG, he’d happily see them working for £2.50 an hour. For free marketeers, cutting wages, while forcing people to work longer hours, is the key to greater productivity. Nowhere in the FEG’s or IEA’s literature is there any mention of bosses and shareholders who pay themselves bigger dividends, while at the same time, refusing to reinvest profits in their businesses. The blame for poor productivity is always laid at the doors of the workers.

The FEG is also closely connected to the tobacco industry and Patel, who once worked for public relations outfit, Weber-Shandwick, lobbied on behalf of British American Tobacco (BAT) before entering the Commons.

BAT, a multi-million dollar business, paid its workers in Myanmar as little as £15 a month.

BAT’s position in Burma at the turn of the millennium was hugely controversial. “BAT’s factory in Burma was jointly owned with the military dictatorship and so helped fund one of the most brutal military dictatorships in the world,” said Anna Roberts, executive director at Burma Campaign UK. “BAT refused to admit how much money it gave to the dictatorship, but Burma Campaign UK estimated that BAT paid the generals $16m (£10m) in taxes alone between 1999 and 2002. In contrast, BAT paid its factory workers in Burma just £15 a month. The dictatorship spent 40% of its budget on the military.”

Patel has a history of working closely with dictatorships and other unsavoury regimes. This is part of a familiar pattern with the Tories: while they are happy to denounce Jeremy Corbyn’s apparent admiration for Hugo Chavez, they are themselves rather comfortable with right-wing and military dictatorships, which are given plenty of latitude, if not outright support. Pinochet’s Chile is but one example of the Tories fraternal ties to unspeakably brutal regimes around the world. Indeed, recently, some Tories, like the disgraced former Defence Secretary, Liam Fox, expressed his admiration for President of the Philippines, Rodrigo Duterte, whose involvement in the Davao death squads to kill those he sees as ‘drug dealers’ as well as political opponents, has been widely reported.

After this year’s general election saw the government lose its Commons majority, the Tories entered into a confidence and supply arrangement with the Democratic Unionist Party, which has ties to Loyalist paramilitary death squads. It would appear that, for all their talk of Corbyn’s ‘support for terrorists’, the Tories are monumental hypocrites and appear to have a sneaking admiration for extra-judicial murder. I put this to Cleverly, after he’d launched another smear attack on Corbyn. I have yet to receive a reply.

The Cat suspects the FEG is manoeuvring itself to put forward one of their own as a candidate for the party’s leadership, and to ultimately take control of the Tory Party. Given the weakness of the current government and of Theresa May herself, there is every chance that they may succeed. Their romantic vision of a free market future is linked to imperial ambition and a hatred of ordinary workers, whom they blame for low productivity. We cannot let these people drag us back a century and a half on the basis of an idealized notion of a brighter past.

 

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Filed under Conservative Party, Free Enterprise group, Government & politics, Let's Talk About

How Much Will It Cost?

“How much will it cost?” is the question many broadcast hacks journalists ask of Labour politicians whenever the subject of spending is raised, yet the same question is rarely, if ever, put to Conservative politicians and there’s a reason for that.  It’s because the mainstream or corporate media has accepted Thatcherite economic orthodoxy and refuses to question it.  Moreover, the question itself is not only loaded, but predicated almost entirely on the Thatcherite logic that national finances are exactly the same as household finances. They are not. And anyone who thinks they are needs to listen to Yanis Varoufakis take down that myth when a member of the BBC Question Time audience repeated it without a moment’s thought.

Thomas G Clark of Another Angry Voice also debunks the myth here.

Television and radio hacks, and their commentator allies have accepted the Thatcherite logic of the market and the domestic finance analogy as fait accompli. For supposedly well-educated people, broadcast journalists have shown that they are neither capable nor willing to ask fundamentally straightforward questions about the Tories’ economic claims, and instead have focussed their attention on Labour’s mythologized economic incompetence.  But the questions they ask are not intelligent questions and behind them is a discourse of mocking and sneering of anything that diverges even slightly from the orthodoxy.

We see this whenever a Tory politician talks about tax cuts, they are never asked “how much will these tax cuts cost”? Instead, their proposals are taken at face value and their tenuous claims to economic competence are accepted as axiomatic. Yet, tax cuts do cost money and the burden will always fall on the shoulders of those who are least equipped to deal with it.  Tories will always claim that they have taken those who earn the least out of taxation altogether.   No questions are asked if the richest will pay more or how libraries, schools and the National Health Service are to be funded when ever-decreasing amounts of tax are being collected by the state.  Of course, Tory politicians know they will never be subjected to the kind of scrutiny reserved for Labour or even Green politicians (Andrew Neil is a possible exception). The deference with which most media journalists treat these puffed up charlatans is more sickening than eating ten Cadbury’s Cream Eggs in a single sitting and it’s getting worse.

This morning, Diane Abbott appeared on Nick Ferrari’s programme on LBC. When Ferrari questioned her about how much will more police officers cost, Abbott got into a muddle. Yet, when Theresa May was asked why nurses were forced to go to foodbanks on The Andrew Marr Show last Sunday, and could only summon up “there are complex reasons” by way of reply, few media commentators batted an eyelid.  Instead, all the outrage was focussed on Abbott’s apparent gaffe. Pathetic.

The level of political debate in the public sphere is shockingly juvenile and is driven by the discourses produced in the mainstream media. It’s no wonder many voters are left ill-informed about their political choices when journalists are only capable of asking stupid questions with the intention of getting a sensational headline.

If our media had any guts, it would have reported on the real story of the day.  Namely, Theresa May going full Erdoğan on pesky local reporters in Cornwall. But they didn’t.

 

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Filed under General Election 2017