Saturday 5 January 2013

Austerity is a lie

The new year is here, and more above-inflation rail fare rises are here, along with more cuts to the benefits system. The cost of living in the UK for the poorest has increased significantly, although the cost for the wealthier has not so much.

The explanation from the government is, of course, that these are austerity measures, because of the global recession, meaning that there is less government money to fund the railways, the benefits system, and local facilities.

The problem is that this is a lie.

This is a lie, because the government could fill the budget gap is a range of other ways. One example here indicates the level of benefit fraud - something the government has emphasised as being a major problem - is not as high as has been suggested. In fact this link (and others are available with similar levels, even if different figures) suggests that fraud levels are around 2.2% of total benefits, some £3.4bn.

It also shows that the there may be some £16bn a year in unclaimed benefit, meaning that if the entire system was cleaned up, and everyone claimed no more or less than they should, the benefits bill would increase by over £10bn.

Of course the government is now starting to attack even legitimate benefit claimants. The most prominent are the increasing demands on the unemployed, as well as the recent suggestions to insist that the retired should contribute to society.

The problem is that most jobseekers are actually looking for work. Not all, I would accept, but most, and so if they do not take a job on offer, there is probably a good reason for it. Forcing them into accepting jobs that are unsuitable is liable to mean they will have to claim more benefits for childcare coverage, or that they will have to give up the job. It is wrong to assume that even unskilled jobs are suitable for just anyone - and it is dehumanising to assume that they are. People are not just units of production, and should not be treated as such, in any situation. Ignoring this is not only wrong morally, but it is liable to throw up more problems in time, not least medical ones, putting more pressure on the NHS.

Pensioners have already made significant contributions to society, and should be able to retire without any further requirements. In many cases, they will make contributions to society.

The other significant information on that link above is the other side of the equation - tax fraud and evasion. This would indicate that this costs over £100bn a year - something like 60% of the total benefit bill for a year (depending on which figures you take, it might be up to nearly 100% of the bill). What is more, this figure is 20 times the benefit fraud figures, so achieving even 10% success in addressing this would make more of a difference, and allow the benefits cuts to be stopped.

This, of course, shows up the real reasons for the "austerity" measures, because there have been plenty of well publicised examples of companies who are not paying their full tax responsibilities, so it is not a problem of finding the money. The real problem is that these companies are the financiers and supporters of the Tory party.

The real reason for most of the government policies - in particular, the financial ones, implemented under the guise of "austerity" - are just extreme versions of standard Tory politics, reducing the tax burden on the rich, and increasing it on the poorer. This is why the government will not raise revenue from the richer, the city and business, despite the fact that the banks are substantially responsible for the economic crisis.

Just for clarification, I don't doubt that some people on benefits are cheating, or that there are some savings to be made in the NHS. I don't deny that we are globally in an economic recession. I have no question whatsoever that we are in tough economic times. But the reason that I say that austerity is a lie is that this is not the reason for the economic changes. The real reason for these is that David Cameron wants to help his friends in this difficult time: the city, the business community (including the train companies) and the wealthy.
Personally, I would call it cronyism instead. "All in this together" it certainly isn't.

This is not a political rant from a lefty against the right wing. It is not about  political positions, as, in all honesty, I don't see any of the main political leaders as being any different in essence. The problem for me is that this is abuse, abuse of those who are not rich, abuse of those who are not influential. This is abuse by those in power of those without power. Forget austerity, this is power games instead.

No comments:

Post a Comment