More Macro

More Macro

In this article, “Britain’s tax delusion”, the ‘Statesman identifies that the UK is not overtaxed, that taxing non-doms and imposing VAT on school fees will raise trivial amounts of money and that the clawback of child benefit has a disincentive on the supply of effort. It is silent on the clawback of the personal allowance which does the same, and fails to substantiate its arguments on income and wealth equality by not quoting the gini coefficient or any altenrative statistics, or facts as I like to call them.

… creates a system that is not just dysfunctional but profoundly inequitable, in which the average effective tax rate paid by those earning more than £10m a year is lower than that of most nurses. In 1845, Benjamin Disraeli wrote of England’s division into “two nations”: the rich and the poor. Today, the gulf between Asset Britain and Austerity Britain is as wide.

Since both major parties identify growth as the answer, we need to ask how they think it’ll happen, the three sources of growth are investment (private or public), government expenditures (i.e. the deficit), or exports (and we know why they’re fucked).

The challenge for Western democracies is to provide for that spending while encouraging investment and job creation. It is a challenge that Britain is failing. Instead, the UK’s tax system is quietly managing our ­economy towards disaster.

Business taxation does not encourage investment; the UK’s investment rate is low by international comparison.

Growth strategies must only be pursued in the context of combatting climate change. So a new coal mine is not a good idea.

Modern economists argue that investment in human capital is a priority as an incubator of growth. Even those politicians who agree are silent in the face of monetarist orthodoxy which requires continued austerity. After 13 years you’d think they’d have learnt, but it seems not.

Image Credit: from , cropped. Fair use as it has no economic impact on the original publisher. …

GMB23, Energy and climate change

GMB23, Energy and climate change

Both for the GMB, on the country at large, one of the most important debates that takes place at GMB conference is on energy and climate change. Today’s debate on Congress floor was fore  shadowed in an article in the Guardian quoting the general secretary Gary Smith calling on labour to think again about his proposals to limit expansion of North Sea oil and gas extraction. This was reinforced by the Scottish region question to Kier Starmer in the Q&A session.

The debate occurred in two sessions. The first session passed M227, on the role of energy prices in the cost of living crisis and to prioritise work with the equality strands, also Composite 16 on prepayment meters, M234 on North Sea Oil & Gas, and M237 on water shortages.

The second part of the debate, held after lunch, dealt with M238 on costs and tax of decarbonisation, M239 on the Hydrogen Economy, and the need for a just transition on jobs and wages,   M240 on electricity and 2030, 242 called environment which called for the GMB to run education programmes on personal energy efficiency and finished with a debate on M229 which calls for the re-nationalisation of the Electricity and Gas industries .

The video stream for the 1st session starts here, the 2nd stream starts here, and the debate on M229 starts here.

I have reproduced the words of the motions on North Sea oil and gas and electricity and 2030 below/overleaf, the other motions texts are published in the Final Agenda document on the GMB web site. Also, of interest and relevance is the CEC 2017 special report, which would still seem to be the baseline for policy. …

Energy and Ed

Energy and Ed

Ed Miliband introduced the Economy debate, speaking on his shadow portfolio, Energy. This was an excellent speech, it made me sad we couldn’t get him in, it reminded me of what we may have lost. ( video | text ). He called for a windfall tax, and the adoption of renewables. He claimed, now, “It’s cheaper to save the planet than destroy it”.

The speech listed a list of opportunities, detailed Labour’s opposition to fracking and called out the appointment of Jacob Ress Mogg, a climate change denier as Business Secretary. …

CoFoE, Climate Change, environment and health.

Those of you following me, know that I have been following the EU’s Conference on the Future of Europe. I have been mainky tracking Citizen’s Panel 2 on Dempocracy and values, but also reviewed ECP 4 and their recommendations on Migration. I have had a brief look at ECP3’s Climate Change and Environment proposals; I looked at these in January and the proposals that made the final plenary will differ.

I made a word cloud of the proposals other than health. Carbon should read carbon reduction, but the generator wouldn’t work with such a long phrase. I have created summary keywords for each proposal, this would be better if I had crowd sourced this allocation stage, but I didn’t.

Word Cloud, ECP3, Climate, environment & health

The Citizen’s panels full proposals are published by the Conference. The panels work in sup groups and so can produce multiple, very similar recommendations.

My highlights are that the panel recommends, the reinforcing of the health care system and the assumption by the EU of competency for health with equal access for all. It also takes a powerful stand for a sustainable energy economy, together with transport system reform: more public transport, particularly buses and trains.  …

The Stern Review on the economics of climate change.

Today, the Stern Review on the economics of climate change was archived into the records of the National Archive. I had created a copy for myself, as I found it easier to read than on a web browser. It’s probably no different today.

It’s most important finding was that early action paid bigger dividends, and that we needed to avoid a 2% increase in the planet’s temperature.

… the less mitigation we do now, the greater the difficulty of continuing to adapt in future.

For more, by wikipedia …