UK Could Break Up unless It Is Rebuilt as ‘Solidarity Union’, Says Mark Drakeford

THE GUARDIAN: Exclusive: First minister of Wales says bonds that tie UK together have come under ‘sustained assault’ from 40 years of neoliberalism

Drakeford said Anglocentric Tories in London had shown a ‘fundamental disrespect’ for the Welsh and Scottish parliaments. Photograph: Dominic Lipinski/AFP/Getty Images
The UK could break apart unless it is rebuilt as a “solidarity union” where every citizen’s rights to public services and financial security are protected, the first minister of Wales, has warned.

Mark Drakeford said the social and political bonds that tie the different parts of the UK together have come under “sustained assault” from 40 years of neoliberalism, a trend launched by Margaret Thatcher in 1979 and then reinforced after Brexit by Boris Johnson and Liz Truss.

“In order to persuade people in all parts of the United Kingdom that their futures lie together within a restructured United Kingdom, we have to recreate a solidarity union,” the Welsh Labour leader said in an interview with the Guardian.

That included rebuilding the safety net for those sick or out of work, with fundamental rights, he said, to environment, consumer and trade union protections, to human rights and to affordable public services. » | Severin Carrell, Scotland editor | Monday, May 29, 2023

How Neoliberalism Threatens Democracy

May 25, 2016 | Neoliberalism, warns Professor Wendy Brown, has created a form of reasoning in which human beings are reduced to their economic value and activity, and in which all fields of human activity are treated as markets and institutions, including the state, are increasingly run as if they were corporations. This logic is even applied to activities with no connection to wealth creation, such as education, dating, or physical exercise, which are increasingly governed according to market rules. People are treated in this schema, as units of human capital who must constantly tend to their own present and future value.

'Truss Doesn't Understand What I Wrote about Economics' | Rick Perlstein

When the Times interviewed Liz Truss at the end of last year, she told us she "read anything" by the American historian Rick Perlstein He chronicles the rise of the new US right between 1960 and 1980, in the Nixon and Reagan eras. Perlstein is confused by her endorsement.

I have stated many times already that Liz Truss and her neoliberal, so-called trickle-down economic fantasy is going to be a disaster for this country. I stand by my words. Neoliberal economics, aka Reaganomics, aka Thatcherism is the last thing we need in the present economic circumstances. Furthermore, had such economic theory been truly effective, this country would have growth in the stratosphere by now! Thatcher came to power in 1979. She was ousted in 1990 in an ignominious coup reminiscent of a banana republic.

I was one of Thatcher’s biggest fans back in the day. But economic circumstances were totally different in those years. The UK had also been in the grip of socialism for many years prior to Thatcher’s ‘Revolution’; so, nothing in the coutry worked. Arguably, Thatcherism was the very medicine the country needed at that time.

However, no prime minister since Thatcher, be he/she a Conservative PM or a Labour PM, has ever had the courage to truly abandon Thatcherism. Now, Liz Truss is going to double down on Thatcher’s neoliberal ideas; and arguably in an even more extreme way!

Thatcherite policies are NOT what this country needs at this time. The economic problems which this country is facing and which this country needs to solve now are totally different from those that Thatcher faced. Doubling down on Thatcherism at this time is madness. Moreover, the only thing that can be said about Arthur Laffer’s ‘laffer curve’ is that it is ‘laffable’! Such an absurdidy! – © Mark Alexander

Liz Truss: The Oligarch’s Prime Minister | George Monbiot

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I wouldn't trust Truss further than I could throw her, nor that quasi chancellor. Kick them out of office asap! – © Mark Alexander

Trickle-down Truss Is Carrying On the dirty Work of Thatcher, Blair and Osborne

THE GUARDIAN: Britain has endured 40 years of decline thanks to this faulty economic theory. Will Keir Starmer finally kill it off?

If Kwasi Kwarteng’s mini-budget survives the storm it triggered, a banker on a million-pound annual salary stands to receive £50,000 of income tax relief – on top of the extra bonuses the bank can throw in, now that the Liz Truss government has removed the cap on them. Meanwhile, a Deliveroo rider gets a pep talk on the emancipatory value of aspiring to be wealthy, presumably as an incentive to pedal harder. This is the gist of the government’s growth strategy or, according to former Brexit minister David Frost, its antidote to stagnation and defeatism.

While it’s tempting to draw the obvious analogy between zombie ideas such as the trickle-down growth effect, and the classic Hollywood horror film Night of the Living Dead, a more appropriate response to the seriousness of the situation is to follow the banker’s extra cash. The government claims the banker will invest it, thus promoting growth. If it were not a blatant lie, it might have passed as a touching example of unfounded faith. But unlike Adam Smith’s bakers, butchers and brewers, who would invest any spare cash into better and more bread, ale and meat, the banker will buy into some fund that will, in turn, purchase shares, derivatives and bonds.

These recipients of the banker’s extra money have a long track record of not investing in actual productive capacity. Why would they, when the masses out there can’t afford to buy new, high-value products? … » | Yanis Varoufakis * | Saturday, October 1, 2022

* Yanis Varoufakis is the leader of MeRA25 in Greece’s parliament, a former finance minister of Greece, and author of Another Now

U.K. Government Goes Full Tilt on Tax Cuts and Free-Market Economics

THE NEW YORK TIMES: The new administration’s proposals are a sharp break from the era of Boris Johnson, and they represent a turn toward Thatcherism.

Britain’s new prime minister, Liz Truss, will be hoping that the measures can engineer at least the start of a solid economic recovery before a general election that must take place by January 2025. | Daniel Leal/Agence France-Presse — Getty Images
LONDON — Prime Minister Liz Truss of Britain on Friday gambled that a hefty dose of tax cuts, deregulation and free-market economics could reignite growth before the next general election as her government unveiled a package of measures that is likely to determine its electoral success or failure.

Breaking sharply with the era of the previous prime minister, Boris Johnson, the new chancellor of the Exchequer, Kwasi Kwarteng, promised the dawn of a new age of lower taxation, with the scrapping of one planned tax rise and the reduction of levies on home purchases to try to fire up the real estate market.

Mr. Kwarteng abandoned a proposed rise in corporate taxation and, in a surprise move, also abolished the top rate of 45 percent of income tax applied to those earning more than 150,000 pounds, or about $169,000, a year. He also cut the basic rate for lower earners.

“We will focus on growth, even when that means taking difficult decisions,” Mr. Kwarteng told a packed House of Commons. “None of this is going to happen overnight, but today we are publishing our growth plan that sets out a new approach for this new era.”

The focus on tax cuts to grow the economy “is how we will turn this vicious cycle of stagnation into a virtuous cycle of growth,” he added.

…

Some dispute the comparison because the plans announced on Friday are likely to mean a large increase in government borrowing, at a time of rising interest rates, because there has been no indication of big spending cuts. While Thatcher was a committed tax cutter, she believed in balancing the books first. » | Stephen Castle and Eshe Nelson | Friday, September 23, 2022

Just when you thought we had reached the bottom with BoJo, along comes Truss to disabuse us of any such notion! At least it will be a smooth ride for the super rich! That's some consolation, I suppose. The rest will be able to look on! – © Mark Alexander

Our Country Yearns for Unity - but Truss’s Government Is Mercilessly Dividing It into Rich and Poor

THE GUARDIAN: For the first time since the welfare state was created, the food bank will be our safety net and charity our last line of defence

‘Liz Truss’s £150bn energy package remains so poorly targeted it will not prevent 5 million children falling into poverty this winter.’ Photograph: Toby Melville/PA
Having been promised an energy price freeze, millions of hard-pressed families will be shocked and fearful when, on 1 October, they are hit with a 25% rise in their fuel bills.

After a summer of doing nothing the government looked as if it had done a lot, but it has not done anywhere near enough. In 10 days’, the cap on energy bills will rise to an unprecedented £2,500 a year. This is an average increase of £10 a week, on top of April’s rise of £14 a week. Fuel costs will, according to Jonathan Bradshaw and Antonia Keung at York University, consume an unprecedented 20% of the income of 4.1 million families in October. By May, that figure could rise to 7.4 million. For 2.2 million families, energy bills will take up an unpayable 30% of their income, and this could rise to 3.8 million families by May.

Never has fuel poverty hit so many people so hard, and unless new help is announced for low-income families on Friday, Liz Truss’s £150bn energy package will remain so poorly targeted that it will not prevent 5 million children falling into poverty this winter, and an ever larger proportion of our nation from turning up at one of the country’s 3,000 food banks. » | Gordon Brown | Wednesday, September 21, 2022

Trussonomics Is a Fanatical, Fantastical Creed, and the Last Thing Britain Needs

THE GUARDIAN – OPINION: ust when we need visions of a better world, the prime minister is proclaiming the toxic gospel of neoliberalism

Soon, the focus will return, and the collapse of many people’s economic prospects will dominate once more. As winter approaches, it will become clear that our politics is spectacularly lacking in answers.

Why? Because the doctrine destroying our condition of life is the doctrine Liz Truss has promised to extend to new extremes. She is fanatically devoted to an ideology misleadingly called Thatcherism or Reaganism (as if they invented it), but more accurately described as neoliberalism.

This doctrine insists that politics submits to “the market”, which means, when translated, that democracy must submit to the power of money. Any impediment to the accumulation of wealth – such as public ownership, tax, regulation, trade unions and political protest – should be torn down, either quickly and noisily or slowly and stealthily. When consumer choice is unencumbered by political interference, the market is allowed to become a Great Winnower, sifting us into a natural hierarchy of winners and losers. » | George Monbiot | Saturday, September 17, 2022

The Nature of Neoliberalism and Its Consequences

Nov 11, 2021 • On the show, Chris Hedges discusses the nature of neoliberalism and its consequences with Professor Wendy Brown*, Institute for Advanced Study, Princeton University.

Does the eruption of ethnonationalist movements defined by hyper-patriotism, xenophobia, racism, religious chauvinism, and so-called traditional moral values signal the end of neoliberalism? Or are these protofascist movements, the natural consequence of neoliberal policies that allowed corporations to corrupt and seize governing institutions and the press, impoverish the working class, and orchestrate the largest transference of wealth upwards in American history?

There is no doubt, as the political scientist Wendy Brown writes, that the constellation of principles, policies, practices, and forms of governing reason that may be gathered under the sign of neoliberalism has importantly constituted the catastrophic present, but, she argues, this was not neoliberalism’s intent, rather its Frankensteinian creation.

By generating anti-democratic forms of state power above its natural consequence, she argues, it was antidemocratic culture from below. The synergy between these two forces sees an increasingly undemocratic and anti-democratic citizenry ever more willing to validate an increasingly anti-democratic state.


• Professor Wendy Brown teaches at the Institute of Advanced Study, Princeton University and isthe author of In the Ruins of Neoliberalism: The Rise of Antidemocratic Politics in the West.

Mont Pelerin and All That
THE GUARDIAN: A cabal of intellectuals and elitists hijacked the economic debate, and now we are dealing with the catastrophic effects

For the first time the UK's consumer debt exceeds the total of its gross national product: a new report shows that we owe £1.35 trillion. Inspectors in the United States have discovered that 77,000 road bridges are in the same perilous state as the one which collapsed into the Mississippi. Two years after Hurricane Katrina struck, 120,000 people from New Orleans are still living in trailer homes and temporary lodgings. As runaway climate change approaches, governments refuse to take the necessary action. Booming inequality threatens to create the most divided societies the world has seen since before the first world war. Now a financial crisis caused by unregulated lending could turf hundreds of thousands out of their homes and trigger a cascade of economic troubles.

These problems appear unrelated, but they all have something in common. They arise in large part from a meeting that took place 60 years ago in a Swiss spa resort. It laid the foundations for a philosophy of government that is responsible for many, perhaps most, of our contemporary crises.

When the Mont Pelerin Society first met, in 1947, its political project did not have a name. But it knew where it was going. The society's founder, Friedrich von Hayek, remarked that the battle for ideas would take at least a generation to win, but he knew that his intellectual army would attract powerful backers. Its philosophy, which later came to be known as neoliberalism, accorded with the interests of the ultra-rich, so the ultra-rich would pay for it.

Neoliberalism claims that we are best served by maximum market freedom and minimum intervention by the state. The role of government should be confined to creating and defending markets, protecting private property and defending the realm. All other functions are better discharged by private enterprise, which will be prompted by the profit motive to supply essential services. By this means, enterprise is liberated, rational decisions are made and citizens are freed from the dehumanising hand of the state.

This, at any rate, is the theory. But as David Harvey proposes in his book A Brief History of Neoliberalism, wherever the neoliberal programme has been implemented, it has caused a massive shift of wealth not just to the top 1%, but to the top tenth of the top 1%. In the US, for instance, the upper 0.1% has already regained the position it held at the beginning of the 1920s. The conditions that neoliberalism demands in order to free human beings from the slavery of the state - minimal taxes, the dismantling of public services and social security, deregulation, the breaking of the unions - just happen to be the conditions required to make the elite even richer, while leaving everyone else to sink or swim. In practice the philosophy developed at Mont Pelerin is little but an elaborate disguise for a wealth grab.

So the question is this: given that the crises I have listed are predictable effects of the dismantling of public services and the deregulation of business and financial markets, given that it damages the interests of nearly everyone, how has neoliberalism come to dominate public life? How the neoliberals stitched up the wealth of nations for themselves (more) By George Monbiot

Mark Alexander