Saturday, August 21, 2010

Life and debt

Via Will and John comes this talk to the RSA by, and this interview with, David Harvey. Both seem particularly pertinent as I sit here in a country that is experiencing a severe economic downturn before returning to one that appears to be locking itself into a masochistic political economy, perhaps showing that, after all, corporal punishment in public schools did do them some harm.

What I liked about this talk is that Harvey is keen to break away from the idea being peddled, not least by some Greeks themselves, that the current financial crisis here is the result of cultural failings. Though the Greek state is hardly a model of efficiency and effectiveness, Harvey looks beyond this to systemic economic factors and, in doing so, challenges many of the other conventional explanations of the crisis.

His main argument is that this is not a series of crises, but a single one that keeps cropping up in different countries across the globe. It is located in the central contradiction of neo-liberal economics. The search for high profits to drive growth derives, at least partially, from the reduction of labour costs, mainly through eroding the power of labour in the market place, thereby adversely affecting the level of demand. So, with earnings stagnant, growth and consumption was maintained through the injection of credit and the invention of ever more complex new financial products to sustain that credit. Thus, when the bubble burst, the crisis appeared to be a problem of indebtedness, easily susceptible to moral arguments about spendthrifts, rather than one rooted in declining real wages - a classic crisis of under-consumption.

Harvey is a Marxist, though certainly not a dogmatic one, but the theory of under-consumption is not solely a Marxist theory. For example, here is the mutualist anarchist, Pierre-Joseph Proudhon, writing in 1846 about the displacement of labour through mechanisation.
What a system is that which leads a business man to think with delight that society will soon be able to dispense with men! Machinery has delivered capital from the oppression of labor! That is exactly as if the cabinet should undertake to deliver the treasury from the oppression of the taxpayers. Fool! Though the workmen cost you something, they are your customers: what will you do with your products, when, driven away by you, they shall consume them no longer? Thus machinery, after crushing the workmen, is not slow in dealing employers a counter blow; for, if production excludes consumption, it is soon obliged to stop itself...
Proudhon was reiterating the views that were also to be found in early liberalism, especially amongst radicals. You can find concerns about under-consumption in Adam Smith, though one of the most persistent and obsessive liberal economists to warn of the dangers was Charles Sismondi (1773-1842).

And this is what interests me, early liberal economics certainly contained some orthodox thinkers such as Jean-Baptiste Say, but much writing is hedged with caution and caveats, whilst radical liberals were overtly critical of orthodoxy and made what they saw as the right of the workers to the full value of their labour central to their thinking. This spawned a whole range of political ideas, not just socialism, but radical liberalism, individualism, co-operation, mutualism and anarchism as well. With the revival of neo-liberalism in the latter part of the Twentieth Century, that critical liberal tradition was ignored and a new, utterly-self confident, version of corporate driven, turbo-capitalism emerged, claiming, somewhat dubiously, to be the true heir of classical liberalism.

If Harvey is right, and certainly the main empirical planks of the argument are all there, then the resolution of a crisis brought about by inadequate purchasing power in the economy through a policy designed to lower that purchasing power further seems hardly wise. From here in Greece, the signs are not good and even the bond markets seem to be opposed to human sacrifice. All of which highlights the increasing interest in the benefits of equality as well as the maintenance of living standards for the many, rather than the massive enrichment of the few.

Thursday, August 19, 2010

Eleni

She's one hundred years old now. Eleni was my neighbour until old age forced her to go and live with one of her sons in Volos. She is back in the village at the moment, staying with another of her sons, so I dropped by to see her.

There were hugs and kisses, she is always pleased to see me. I think she appreciated us as neighbours and liked us around the place. Her hearing and vision isn't great, but though frail her sense of humour is buoyant and she rocked with laughter at my wild gestures that tried to convey some sort of meaning that my Greek language could never manage to do.

There is no flash on my mobile phone so the picture isn't great but that didn't stop her son trying to get me to take a photograph of the barbecue being built on their patio. They were trying to sell me one and thought I could show the photograph around. Sadly, it was too dark so the builder rushed to his car, stood in front of the barbecue, took a picture, showed it to me and then put his camera away. I think he missed the point.

At the moment I am reading about another Eleni, the mother of the author Nicholas Gage. She was tortured and executed for the crime of protecting her children during the final stage of the Greek Civil War. It is a brilliant, complex and harrowing book. And then I think that the Eleni I know was in her thirties when the Nazi occupation began, with its mass starvation and appalling hardships, closely followed by the brutalities of the Civil War. I wonder what she has seen during her long life, I will never know.

Still, she survived, gave birth to four sons and lives on. As does Greece, now a democratic nation, though facing new troubles. May Greek democracy too survive this unnecessary economic onslaught and leave the horrors of the Twentieth Century buried in the history books, never to be re-enacted.

Wednesday, August 18, 2010

What I did on my holidays

I suppose that after the hard grind of relaxing in Greece for a couple of months, the wedding in the Czech Republic was just the tonic I needed. And what a wedding!

Most tourist will be familiar with Prague, but Olomouc is less well-known, incomparably quieter and has a beautiful centre, ringed with hideous Stalinist architecture. Everywhere there are reminders of a troubled history. The Second World War memorials carry the unfamiliar dates of 1938-45. For Czechs, the war began with the dismemberment of their country and the start of the German occupation after the Munich agreement. Then there are the remainders of the Communist past; the murals at the railway station and, above all, the clock.

The town hall has hosted an astronomical clock since the fifteenth century. It has been remodelled frequently, the last time was in the 1950's. As the defeated German army left in 1945, someone, in an act of spiteful vandalism, fired a shell at the clock leaving it wrecked. And so it was rebuilt, this time in the style of Socialist Realism, a unique piece of Stalinist kitsch. Here it is as it was before the war and today.













Every day at twelve it gives its full performance in front of a small knot of observers. There is a YouTube video of it in action here.

Elsewhere, the city is studded with extraordinary Baroque churches, as political as the clock. They were built to mark the defeat of the Reformation in the Thirty Years War and flaunt the resulting Catholic ascendancy. One monument, the Holy Trinity Column, now a UNESCO World Heritage site, stands across the square, glaring at the clock.

Walking around a city you often get the sense of its past from the neglected and the run down, rather than from the celebrated tourist highlights.

A street scene or, in this case, a simple doorway gives a sense of faded elegance that contrasts with the crumbling concrete of badly built apartment blocks from the Communist era. It made me wonder about Stalinism as an aesthetic failure as well as a political catastrophe. Catholicism in Europe was associated with reaction, illiberalism, authority and control yet still produced some magnificent art. But perhaps the sheer ugliness was just the product of the times, when public architecture became particularly joyless the world over.

Then there was the wedding itself in a spectacular church on a hill overlooking the Moravian plain. If the outside wasn't imposing enough, the interior was wildly over the top, like Liberace on speed.

As a hardened cynic, even I was blown away by such a magical scene for a wedding. I could forget my antipathy to the iconography and wallow in pure sentimentality in a church full of seriously hungover people, at least the ones from England. That certainly is a bunch who know how to party. Late nights on the town for a couple of days before the event had left their mark, but they were only training sessions. It was time for the reception.

It started impressively enough with a waiter slicing the top off a bottle of champagne with a sword and the custom of smashing a plate on the doorstep of the restaurant that the groom has to sweep up with a dustpan and brush. It then turned out to be a fifteen hour extravaganza of food, booze and dancing to an ageing Rock 'n Roll band, playing the standards sung in Czech, either side of a disco featuring naff 70's and 80's pop music. The place was bouncing when this one came on. And then there was all that gorgeous Czech beer.

I had never been to the Czech Republic before. The one thing that struck me most was how orderly the country is. Even if there is no traffic, nobody crosses the road unless the pedestrian crossing lights allow. Small groups of people stood patiently by the side of empty roads waiting for the clicking sound made by the crossings to speed up, meaning that the lights had changed to stop the non-existent cars. The museums only allowed you to pass through them in one direction and stern attendants were everywhere to ensure that you did as you were told. In restuarants and bars plates and glasses were cleared away the second you had finished. Sunday night was near silent and the city centre was deserted apart from a few tourists. Yet the clubs stayed open late and served up huge quantities of alcohol and the bars and restuarants certainly didn't bother with healthy eating options and portion control.

It had been an unforgettable weekend; noisy, rowdy and incredibly drunken, spent with people who I like immensely in a remarkably beautiful place. Yet on my return to Greece, as I sat on the bus taking me down the peninsula, just behind the driver who was talking on his mobile phone and smoking a fag out of the window as he manoeuvred round hairpin bends, I enjoyed the culture change; friendly, informal, occasionally fractious, anything but organised though it still works and somehow more comfortable, like sitting in your favourite chair. I had been away and I was coming home.

Thursday, August 12, 2010

Away

I am setting off this morning for the Czech Republic to attend a wedding. I shall be here for a few days, with the urge to do some sightseeing no doubt conflicting with the odd hangover. So all you will get here is ...

Tuesday, August 10, 2010

Sizzling in summer

One of the great pleasures of summer in Greece is being able to use the barbecue regularly, especially if friends come round to share a meal, talking and drinking until late in the warm night air. All types of meat, marinated in lemon juice and olive oil together with fresh herbs picked from the garden, taste wonderful cooked over charcoal, as does fish, bought the same day from the sellers at the front. Aubergines and peppers are beautiful too, grilled and sprinkled with salt, vinegar and oil.

But what is this? A study has found that this is really shocking behaviour.
Beer, ice-cream, crisps, Indian takeaways, chips and anything in batter: normally, it's a particular food type that gets blamed for helping the British to pile on the pounds. But now a whole style of cooking and eating has come under fire for encouraging obesity in the UK.

Research shows that Britons consume more than the recommended daily intake of calories in a single barbecue meal, with men often eating more than 3,500 calories and women more than 2,500.
Oh no! Douse those coals immediately or at least follow the report's advice. Replace those sausages with a "tofu kebab or mixed green salad with harissa dressing" or at the very least "exercise portion control".

So who carried out this research, which University or research establishment was involved? Er ... the study was "conducted by Boots and the Tony Ferguson Weightloss Programme" who just happen to have a new range of expensive diet products to sell to the guilt-ridden.

There was one consolation at the end of the piece,
However, the Boots research indicates that any advice on sensible alfresco eating habits is likely to be ignored: it found that although a third of those questioned (2,000 adults) were aware they eat more food than usual, 41% chose to forget how many calories they were consuming and ate as much as they wanted.
Bravo for the 41%! Anyway, I always exercise portion control at my barbecues, the portions are vast.

Friday, August 06, 2010

An advocate of peace

It is hard to add anything to this statement.
Mohamed Abu Muailek is a 25-year-old Palestinian, believes that Palestinians should seek co-existence with Israel. Mohamed is in jail and facing potential execution by Hamas. Once a militant, he is now a strong advocate of peaceful coexistence. He used to fire rockets from Gaza into Israel. Then, partly because of an internet friendship with an IT colleague, Mohamed changed his mind. Deciding that violence was wrong, Mohamed became a dissident, and argued the case for peace and co-existence with Israel. Hamas have jailed him and he is facing a likely death penalty.
The campaign website is here and a report of the experience of the film-maker, Paul Martin here.

Anyone prone to romanticise Hamas, please take careful note.

Thanks to Helena

Tuesday, August 03, 2010

Lost in translation

Waking early this morning, I did some web surfing and ended up on a Greek blog post listing some of the best moments of summer. Because my Greek is very, very rudimentary, I was lazy and used Google Translator. Here are some examples of what it came up with:

"The crowing of a misguided from the hot cock in a ill-afternoon hours"

"The repeated echo of a distant and allegedly festival is induced by the moods of the wind"

"Crack due to the unplanned rush of impatience forks when the waiter leaves the table dish with tzatziki"

And my favourite:

"Can meet again in passionate love of your vacation last year and I recommend your child"

Some advice - use a dictionary.

Monday, August 02, 2010

Shocking

You learn something new every day if you read the papers.
If we look at the industrialised world, basically 90% of all deaths are caused by ageing.
Well I never.

Politics and anti-politics

From over the pond - the Aegean that is - a reader based in Turkey drew my attention to this catchy paragraph from Peter Oborne's book, The Triumph of the Political Class.
"The only Cabinet minister in Blair's 1997 administration known to have had any experience of work in the commercial sector was John Prescott, a ship's steward in the '50s. He was later joined by Alan Milburn, who used to run a Marxist bookshop called Days of Hope, better known by the spoonerism Haze of Dope"
There is a lot to unpack in such a short passage. It is part of a common-place argument that politicians are distanced from 'real life' and have no understanding of the 'real world', being locked in a parallel universe of their own making. The argument isn't without merit, but in one sense it is a truism. We all live lives proscribed by the boundaries of class, gender, region, ethnicity, occupation etc. and do not have an intimate understanding of the lives of others, though we can try and learn and the failure to do so is a major contributor to bad management and poor policy making.

Yet there are other difficulties with the specifics of Oborne's comment. Anyone coming into government will of necessity have been an MP for some time and so politics will have been their full-time job for quite a while. Then what does he mean by "the commercial sector"? Private industry? And if so, why is this experience more valid than the public sector or the professions? And, of course, there is a neat, snobbish dig at Prescott in there too. But even taking it on its own terms, there is one major problem with this statement. It isn't true.

The claim that no-one apart from Prescott in the 1997 Cabinet had any experience outside politics seemed so unlikely that I did a bit of checking on the internet. It took less than an hour and this is what I found.

Margaret Beckett was a metallurgist for AEI, soon to become part of GEC. David Clark worked in forestry and was a lab technician in a textile mill, then became a mature student and university teacher. Nick Brown worked for Procter and Gamble. Frank Dobson worked in industry, but for the then nationalised Electricity Generating Board. Gavin Strang was an agricultural scientist.

Several cabinet members had experience of local government, the most notable being David Blunkett who had run Sheffield City Council, possibly a better preparation for a ministerial post than being a management consultant.

There is another side to the "commercial sector" as well. Unsurprisingly, the 1997 Cabinet contained four former full-time union officials, including Prescott. Day-to-day working in industrial relations is certainly an education in the only too real life experienced by many of the electorate!

The biggest single group was lawyers with seven in cabinet, does their work not count as "commercial"? There were two former adult education tutor-organisers as well and three University lecturers. Clare Short had been a civil servant and, given the new government's interest in the Third Sector as part of their Big Society fad, they might be interested to know that Chris Smith had worked for a housing charity.

There was no-one from senior business management or from the financial services sector, but are they any more representative of 'real life'? Anyway, given the overwhelmingly Tory ethos of business management, it would be odd to expect to find anyone building a career as a Labour politician from it. And though the ministers were all middle class professionals, quite a few had come from working class families and were the beneficiaries of the post war expansion of educational opportunities. Rather than being narrow apparatchiks, they had rather a wide range of experience and impressive academic qualifications.

It is always fun to point out where sloppy research undermines an argument, but I think that more important things are at stake. The book is riding a current wave of anti-politics, which I consider highly dangerous. It takes various forms; 'they are only in it for themselves', 'they are all the same', and other associated generalisations. Of course, if you ask people to expand on this and be specific they usually can't. This is because of a slippage between scepticism and cynicism.

Politics, as a means of managing our public and collective interests, is a necessity. It never goes away. I am deeply depressed about the awful level of current political debate, the dominance of an elite consensus on political economy and on the quality of political leadership. However, this is very different from a rejection of politics in itself.

Anti-politics is cynical not analytical. It is a blanket condemnation of politics and an expression of contempt for politicians, whatever they do or stand for. In itself, it posits no alternatives and has no analysis. There is the strange Tea Party anti-political movement in the United States, but perhaps the most egregious recent example is the Greek Sect of Revolutionaries whose first proclamation announced, "We don't do politics, we do guerilla warfare". Nobody knows what they stand for. I doubt if they do. Often this is an impulse that can be exploited by the populist autocrat who declares himself to be 'above politics' (the ultimate oxymoron for a politician), sometimes it can lead to the demand for a 'top businessman' to come and sort things out. Demagoguery replaces the building of movements, alliances and the representation of interests.

My deep disappointment with New Labour knows no bounds, and as for the new lot ...
It would be a huge relief to see politicians shunning conventional wisdom and media stereotypes in favour of good research and pursuing principles instead of exercising their own cynicism through media-driven populist measures to be nasty to whoever is the latest folk devil. However, we do need to be able to explain why we think like that, rather than simply hug the comfort blanket of anti-political sentiment. Intelligent politics is the answer to anti-politics, it can be just as critical, but with reason and, most importantly, it offers us alternatives.

Thanks to John

Friday, July 30, 2010

Greek news

One thing that has irritated me about the coverage of the Greek financial crisis has been the way in which much of the fault has put down to Greek character flaws. Some coverage has been borderline racist. Now Austria's far right has taken a step over that line with this poster from the FPO.












When challenged, they claimed that it wasn't a Greek stereotype but a caricature of the blond, clean shaven, pale skinned businessman, Spiros Latsis. Hmm... Nasty stuff. Full details here.

In the meantime, Piraeus municipality has gone bust, the truck drivers have ignored the government's 'civil mobilisation' order to stay on strike, leading to a fuel shortage throughout the country, and, after machine-gunning an investigative journalist on his doorstep, a tiny group of psychopaths calling themselves the Sect of Revolutionaries have issued a communique saying, "We are at war with your democracy ... tourists must learn that Greece is no longer a safe haven of capitalism. We intend to turn it into a war zone."

And, you know what, it is a lovely place. Don't be put off, come and stay. Life continues. It is more than the weather that is warm at this time of year. It is holiday time, there are festivals, people are eating out, swimming, enjoying life and, if you are in tourism, working flat out. You wouldn't guess that there is a crisis (unless you want to fill up a car, or even get a bus or a ferry if this strike continues). But, at the back of your mind, you have to question the wisdom of an economic policy, imposed by international organisations that, far from throwing riches at ordinary Greeks, is impoverishing some of them. And you have to wonder where it may lead.

Thursday, July 29, 2010

The reason

Michael Gove gives the most convincing explanation yet for the composition of the government.
'Rich, thick kids' achieve much more than poor clever ones, says Gove
Precisely.

Wednesday, July 28, 2010

Sooner than expected

Well, it didn't take long for the newly elected, red tape burning, opponents of the nanny state to start using their power to hector us fatties, did it?

GPs and other health professionals should tell people they are fat rather than obese, England's public health minister says.

Anne Milton told the BBC the term fat was more likely to motivate them into losing weight.

Plus ça change, plus c'est la même chose.

Thanks Paulie

Revising history

Nothing much is happening here. A tremendous storm with hail and lightning has cleared the humidity, mixing sparkling sunshine with cool clear air. A strike by truck drivers is leading to acute shortages of petrol, threatening transport links, though the air traffic controllers have ended their action.

And so, with little much to post about, thoughts turn to history and this rather splendid resource debunking the historical distortions of American Religious Right as they attempt to deal with a somewhat tricky obstacle to their theocratic nationalism, the establishment of the United States as an explicitly secular republic. Instead they argue that the original intentions of the founders of the constitution were for the United States to be a Christian nation. To do so they have to engage with a range of tricks drawn from the revisionist toolbox.

The inestimable Chris Rodda has a series of nine YouTube presentations on her site that are worth watching in full, coolly pointing out the distortions, selective quotations and spurious sensationalisms that are the stock-in-trade of this type of revisionism. One of my favourite moments is when she points to a much-used quotation from a letter from John Adams that suggests that Adams thought that any government was not legitimate without the guidance of the Holy Ghost. The paragraph in which Adams declares that such a view is "all artifice and cunning" is, unsurprisingly, dispensed with, thus making the letter appear to support what it was attacking.

So, if I have any readers left, I suggest you have some fun by watching these presentations in sequence as my lax approach to posting continues. As a taster, here is the first one.

Thursday, July 22, 2010

A confession

I have never really liked George Orwell's 1984. It is a clever novel, has given the English language new words and the names for two naff TV shows. It is part of our cultural heritage. It has been substantially misread as everything from a savage criticism of the post-war Labour government (which Orwell supported!) to the BBC. Orwell always claimed that all he was doing was projecting contemporary totalitarian trends into a future dystopia - the clichéd Orwellian nightmare - yet this is where my doubts begin.

There is a standard phrase about taking things to their logical conclusion, which I think is wholly misleading. It is usually used to describe taking things to their extreme conclusion, something that can happen certainly, but also something that is not necessarily logical nor even particularly likely. And this is what Orwell's dystopia does.

I have other doubts too. Each time I have read the book the characters do not come to life for me and I find the the depiction of the working classes faintly patronising. However, it is the cynicism and the bleakness of the conclusion that I really dislike. Everyone can be broken, everyone can betray everyone else, everyone can be made to love Big Brother. Power is unlimited, the future is certain - "a boot stamping on a human face - forever".

All this was brought to mind as I have just finished reading another novel, written and published a year before 1984, also the last work of a writer who died shortly after completing it. It too chronicles a story of failed resistance to totalitarianism, this time loosely based on real events and personal experience, but it offers us a completely different conclusion.

Hans Fallada's Alone in Berlin is currently a word of mouth best-seller. It is available in a wonderful translation (yes George, I noticed) by Michael Hofmann, allowing both the poetic language of the novel and the use of Berlin street argot to become accessible to English readers. It has the odd clunky bit of plotting and the usual awkward contrivances of the novel. At first, it reads almost as if it is a detective thriller before becoming an essay on morality and the human personality. Yet the book is compulsive, disturbing and, in its way, beautiful.

Fallada's main themes are the resistance to the Nazis by people of all classes, collaboration by people of all classes, and the enthusiastic sadism of the true believer, again drawn from all classes. Centring on the inhabitants of one apartment block in a working class district of Berlin, it deals with low life opportunists, Nazi apparatchiks, those torn between their private lives and a sense of disgust at the crimes of the regime and the all-pervading fear that keeps people quiescent. The action by the main protagonists fails, as was always utterly inevitable, but this is the crucial difference between Fallada and Orwell, they are not broken. They do not come to love Hitler.

And from the disgust of ordinary people like these, a new society can emerge after the inevitable defeat of tyranny. For where Orwell offers us a vision of perpetual power, Fallada gives us one of perpetual resistance. Resistance that will, one day, end the darkness and overcome fear.

At the end of the book he writes of,
...life, invincible life, life always triumphing over humiliation and tears, over misery and death.
Orwell's bleak warning is countered by Fallada's bitter, painful, realistic and fully human hope.

There is one final irony. Fallada invested his hope of the rebirth of an anti-fascist Germany in the Soviet occupied East. He died in 1947 so did not see one totalitarianism morph into another. But then that too, in its turn, has fallen. I think history is on the side of Fallada. And with events elsewhere threatening a surrender to cynicism, it may be time to remember and support the resistance and hope offered by the lives ordinary people.

Saturday, July 17, 2010

The heat! The flies!

Nothing much continues to happen here in its own delightful way. Last night was a panygeri for Agia Marina with music and dancing on the paraleia until around two in the morning. It was sandwiched between two minor earthquakes, one of which I slept through and didn't know about until I was told the next day. Tonight was a night for sipping wine on the patio until late. The weather has cooled slightly. At midnight the temperature had dropped below 21C, enough to trigger a state of emergency in England and get any self-respecting Greek reaching for their cardigan.

Great thoughts? There are few of those. In the drowsy heat of day the persistence of the flies in doing their best to irritate you annoys, but the abundant extravagance of life is everywhere, often with the cat chasing it until the shade of the lemon tree tempts it to rest. So, with nothing to say, here is a musical interlude.

Thursday, July 15, 2010

A song

The internet may or may not be destroying your concentration span, but it retains the ability to delight. On finishing Sheila Rowbotham's biography of Edward Carpenter, I was struck by her account of how many of his friends and colleagues celebrated his life by singing the socialist anthem that he wrote, England Arise. But what did it sound like?

The words and music are available, but I can't read music and the contemporary feel would be missing. And, once again, the internet comes to the rescue, this time through the Bishopsgate Institute, an adult education centre with an extraordinary collection of radical material (even more apt as Carpenter's career as a radical started with him teaching university extension courses). It has a number of early sound recordings of radical songs including a 1925 recording of England Arise, made four years before Carpenter's death in 1929.

I find the hopeful utopianism of the period both poignant and moving. So click here and, if you like, sing along to the words below:

England, arise! The long, long night is over,
Faint in the East behold the dawn appear,
Out of your evil dream of toil and sorrow –
Arise, O England, for the day is here!
From your fields and hills,
Hark! The answer swells –
Arise, O England, for the day is here!

People of England! All your valleys call you,
High in the rising sun the lark sings clear,
Will you dream on, let shameful slumber thrall you?
Will you disown your native land so dear?
Shall it die unheard –
That sweet pleading word?
Arise, O England, for the day is here!

Over your face a web of lies is woven,
Laws that are falsehoods pin you to the ground,
Labour is mocked, its just reward is stolen,
On its bent back sits Idleness encrowned.
How long, while you sleep,
Your harvest shall it reap?
Arise, O England, for the day is here!

Forth, then, ye heroes, patriots and lovers!
Comrades of danger, poverty and scorn!
Mighty in faith of Freedom, your great Mother!
Giants refreshed in Joy’s new rising morn!
Come and swell the song,
Silent now so long;
England is risen, and the day is here!

Go slow

It is all the fault of the internet of course, it usually is. Apparently, "many of us no longer have the concentration to read articles through to their conclusion".
According to The Shallows, a new book by technology sage Nicholas Carr, our hyperactive online habits are damaging the mental faculties we need to process and understand lengthy textual information. Round-the-clock news feeds leave us hyperlinking from one article to the next – without necessarily engaging fully with any of the content; our reading is frequently interrupted by the ping of the latest email; and we are now absorbing short bursts of words on Twitter and Facebook more regularly than longer texts.
So now there is a movement for slow reading to recover the lost arts of contemplation. Not that I ever lost them. I am a slow reader. Naturally and infuriatingly slow. Friends pile through a book, without speed reading techniques, in twice the time I do. They can start discussing the conclusion, whilst I am still on page 150, gazing into space or wondering whether I left the gas on. My slow reading is nothing to do with my superior powers of concentration, it is because I am a slow reader and was one long before the internet ever existed. Given my choice of career, it has not been a blessing.

I must admit that when I am on the internet I commit all the sins mentioned above. I skim and rarely finish articles. That is mainly because it rapidly becomes clear after the first few paragraphs that much of what is on there is deeply tedious, steaming ordure and I have a life. Being a slow reader makes you more intolerant of the time wasted reading rubbish. There are some gems on-line of course and those I read painfully slowly.

So now, on a perfect summer's morning, I shall sink into a chair in the shade on the patio and finish the last couple of chapters of Sheila Rowbotham's excellent biography of Edward Carpenter, a book that I have been reading for a very long time.

Sunday, July 11, 2010

Drama

Lot's of exciting things happen here. It's non-stop action all the time.

Like this - Iannis tried to feed his goats on a branch of a tree in the garden, but they weren't interested!
















A day after that someone drove a big machine down our narrow lane to drill for water on their plot of land. Phew!



















Then ... er ... something ... Oh well, whatever it was it was thrilling ...

Friday, July 09, 2010

Another fine mess

There are some things that are predictable. There was little hope that I would look at the the new coalition's emergency budget with anything other than horror. Though I do have a range of critics to call on to support my view. Over in the New York Times Paul Krugman plugs away with increasing exasperation at the new economics of austerity. David Blanchflower launches continual attacks on what he calls, "This unnecessary and dangerous budget". Liberal Keynesians both. I suppose you would expect it from them too.

Now, in measured tones, doubts come from a more orthodox source:
Most advanced economies do not need to tighten before 2011, because tightening sooner could undermine the fledgling recovery, but they should not add further stimulus.
This from the IMF. Yes, Osborne and Alexander's critics now seem to include the IMF.

And as stories begin to crop up like this:
A school which burnt to the ground seven months ago, forcing its pupils to attend lessons in portakabins, was one of hundreds that heard this week that the government had called a halt to its rebuilding plans.
And this:
Millions of pounds intended to be saved by scrapping school building projects could be spent on legal fees as the government faces a spate of litigation from contractors and local authorities.
Not to mention this and this:
The government's new tax and spending watchdog needs urgent reform to establish its independence from George Osborne's Treasury, according to a report today by one of Britain's leading thinktanks.
There is a sense that perhaps all is not as well as might be with our new political partnership. I am beginning to wonder if this is how they got in.

Sunday, July 04, 2010

It's only rock 'n roll

"...when established politics is dead and trivial, and politicians are demonstrably part of the problem not the solution, culture becomes the only democratising agent."
This from the latest in a long line of superb, angry journalism from Ed Vulliamy on the conflict in the former Yugoslavia. It is about the organisation, War Child, born out of the war in Bosnia, when, as Vulliamy puts it,
... the so-called "international community" responded to this carnage with carefully calculated neutrality. While civilians were raped, incarcerated, "ethnically cleansed" and mass-murdered, the diplomatic community stuck defiantly to a policy of non-intervention beyond a mandate to deliver humanitarian aid. The British were to the fore in ensuring that nothing was done:
It is well worth your time reading the whole piece, a testimony to human resilience and resistance in the face of organised cruelty and international indifference, but here are two snippets. The first from Nigel Osborne, composer and music professor and one of the earliest activists.
"Rock'n'roll, is inherently democratic, whatever is done in its name. Against third-rate politics, in Bosnia and across Europe, we pitched first-rate music. If the local fascist politicians were going to have their speaker system in the John Major government and at the UN, then we were going to have our speaker system too."
And it is not just rock music, Vulliamy recalls,
I remember on my 39th birthday in 1993, after the massacre by shelling of civilians queuing for water in a suburb called Dobrinje, going to a lunchtime concert by the Sarajevo String Quartet in the blacked-out National theatre. The Serbs would usually attack such events, and one mortar landed so close to the theatre that the building shook and the viola player's stand fell over during an especially delicate moment of Haydn's String Quartet in D Major Op. 64, No 5, "The Lark". The first violinist, Dzevad Sabanagic, waited for his colleague to replace the score, called out the number of a bar prior to the interruption, and the quartet played on.
How many divisions have the arts? More than you might imagine.



You see Will, I obeyed.

Friday, July 02, 2010

Hyperbole

Well the 'progressive' coalition that never was, gave way to 'progressive' cuts and now 'progressive' is the word of our times and, never precise in its usage, is now utterly meaningless. But is that 'fair'? It must be because everything else is.

Every day another bit of meaningless verbiage seems to crop up. Today let's raise a cheer for the Blairite contender for the Labour Leadership, Andy Burnham:

Andy Burnham today calls for Labour to exhume its socialist roots and become the party of "aspirational socialism"...

What on earth does that mean? I suppose it is marginally better than the incoherent mess of 'Red Toryism'.

I despair at the linguistic wasteland of government by PR executives, but there is at least some compensation in the news that Vince Cable's new 'department for growth' may well be the first to shrink.

Tuesday, June 29, 2010

Depression

And quite possibly a long one. Paul Krugman thinks so:
Why the wrong turn in policy? The hardliners often invoke the troubles facing Greece and other nations around the edges of Europe to justify their actions. And it's true that bond investors have turned on governments with intractable deficits. But there is no evidence that short-run fiscal austerity in the face of a depressed economy reassures investors. On the contrary: Greece has agreed to harsh austerity, only to find its risk spreads growing ever wider; Ireland has imposed savage cuts in public spending, only to be treated by the markets as a worse risk than Spain, which has been far more reluctant to take the hardliners' medicine.

It's almost as if the financial markets understand what policymakers seemingly don't: that while long-term fiscal responsibility is important, slashing spending in the midst of a depression, which deepens that depression and paves the way for deflation, is actually self-defeating.

So I don't think this is really about Greece, or indeed about any realistic appreciation of the trade-offs between deficits and jobs. It is, instead, the victory of an orthodoxy that has little to do with rational analysis, whose main tenet is that imposing suffering on other people is how you show leadership in tough times.
Imposing suffering on other people as a sign of leadership? Isn't that a bit harsh? Oh... Here's Frank Field, David Cameron's policy advisor on poverty, and yes he is a Labour MP.
He (Field) suggests that men who refuse to take up a government offer of work should have their benefit removed altogether, a far tougher sanction than they face under the current benefits regime.
To do what is the question that springs to mind. Starve? Beg? Rob? Or take that marvellous career opening in a contracting economy that opens up all the time to people Field describes as "the unmarried father who is often young, unemployed and often unemployable and who is unskilled"? Supply side dogma again. And the sort of community education that can make a big difference to individuals is now facing the looming inevitability of cuts.

Never mind, we can be reassured that this is a centrist government for a non-ideological age. Who better to say so than Tony Blair, who now regrets the time wasted in the first two years of the Labour Government ideologically overturning the work of the Tories (can't quite remember that bit myself).

So sorry Krugman, this isn't the triumph of the ideological preferences of Herbert Hoover, it is just good sense.

Well, at least the neo-liberal weather, brutally imposed on this normally sun-kissed nation by the IMF, has relented and it is now a beautiful day. So I am going to stop wasting my life reading the Guardian on-line and simply enjoy sitting in the shade on my patio. Bollocks to the lot of it, here's a YouTube.

Sunday, June 27, 2010

Surprises

Not one here:
The impact of George Osborne's emergency budget on the poor has been revealed in a study that finds the country's least well-off families face cuts equivalent to 21.7% of their household income. That means they will be hit six times harder than the very richest by the coalition's deficit-cutting measures.
A bit of one here from William Keegan if you bought into the Government's 'record deficit' guff:
The Treasury view seems to have been brought back into circulation by Osborne. Most people accept that it was misguided in the early 1930s, when, at the time Neville Chamberlain introduced his deflationary budget of 1932, the national debt amounted to 177% of gross domestic product and debt interest was absorbing as much as 40% of public expenditure. By comparison, the latest Red Book puts debt at 61.9% of GDP in 2010-11 and debt interest at 6.3% of total public expenditure. Yet the way that Osborne goes on about it, you would think things were more like the 1930s.
A bloody great one here, especially if you expected to be annoyingly smug about being in Greece (and it is about to start raining again):
As Britain enjoys a sporting and cultural weekend that will linger in the memory, temperatures are set to eclipse those in Greece today as the country basks in a heatwave.
As for this, totally predictable, even the false hope and the goal that wasn't.
England, for all the exertion, had been a markedly inferior team.

Monday, June 21, 2010

Green Greece


There was more rain this afternoon. It has left the garden incredibly green for late June in Greece. Now the birds are singing and the cat that comes here demanding food was found asleep on the sofa before being unceremoniously booted out. He is trying to move in. He still got his bowl of food tonight though. There are no great thoughts in my head, not this evening, not after the rain.

Sunday, June 20, 2010

A coalition of cuts

There is only one real issue in the UK today and it is ideology. This may seem strange as Britain, with its deeply embedded political self-image of pragmatism and moderation, can often appear to be an ideological wilderness. Today's papers trail the forthcoming emergency budget, no doubt informed by countless confidential briefings. It is being made obvious that it will launch a massive programme of cuts and, whilst they still talk about us all being in it together, clearly some are more in it than others.

Keynesian liberals are appalled. Here's Will Hutton:
No country has ever volunteered such austerity. It is as tough a package of retrenchment as the IMF imposed on Greece, a country on the brink of bankruptcy. It is twice as tough as the famously harsh measures Canada took between 1994 and 1997. It is three times tougher than Sweden's measures between 1993 and 1995. In British terms, it is immeasurably tougher than what we did after the IMF crisis in 1976 or after the ERM crisis in 1992...

We are not in the position of Greece. Britain has a diversified economy. Our cumulative national debt is not large by international standards. Uniquely, the term structure of our debt is very long – around 14 years. Most of this year's debt will be sold to British domiciled individuals and companies, so the international sovereign debt crisis has much less impact on us. The level of interest on the national debt in five years' time as a share of national output is more than manageable. These are the truths about the situation; to claim otherwise creates distrust.
So why do it? Surely, what we are about to see is the dogmatic implementation of the underpinning political economy of contemporary conservatism, borrowing some of the small state hysteria of the American right, though without the paranoia, lumped together with the perceived self-interest of the business elite, but mainly settling into comfortable, thought free, treasury orthodoxy; the final resting place of the complacent.

Those of us who remember the 80's will realise that these moments do not occur in a vacuum, there has to be an international consensus. Thatcher had her Regan, neo-liberalism was in the ascendancy, attempts at Keynesian stimulus failed in France as Mitterand did a comprehensive u-turn. Today much reference is being made to Canada, Sweden and the like who made major structural adjustments, apparently successfully. Except...

One of the most trenchant critics of the current orthodoxy, Paul Krugman, points out in his blog that these cases are not analogous. Instead, he argues in this New York Times op ed "that economic policy around the world has taken a major wrong turn, and that the odds of a prolonged slump are rising by the day".

The other similarity with the Thatcher years is the existence of a crisis in the centre-left. In the early 80's it was the split in the Labour Party and the formation of the Social Democratic Party. Both opposed Thatcherism, but now, following the SDP/Liberal merger to form the Liberal Democrats, part of the former opposition is actually in the coalition government, whilst the Labour Party has lost power after a long period of accommodation with, rather than opposition to, neo-liberal political economy. The ideological sterility of Labour's leadership debate shows little sign of a political movement that can speak for any popular discontent arising from this elite economic consensus.

Whilst looking around for a coherent and informed political opposition and merely finding oneself in an intellectual desert, it is hard to escape pessimism. Krugman again writes that, "The triumph of prejudices over the evidence is a wondrous thing to behold. Unfortunately, millions of workers will pay the price for that triumph." And the last word goes to Will Hutton:
Number 10 and the Treasury believe the worst can be offset by aggressively low interest rates and more quantitative easing. They will work to a degree. But what is proposed still risks everything. Politicians pay the price with lost office. Millions of British will pay a higher price – the needless squandering of their lives.

Thursday, June 17, 2010

Let them learn salsa

This will sound churlish. A statement from any government minister that sees adult education as anything other than an expensive luxury should be a welcome relief. I know that John Hayes, the Skills Minister, had extensive contacts with adult education organisations when in opposition and, I was assured by others, despite my cynicism, that he actually got it about its significance.

He certainly seems to given this reported statement:
Taking evening classes improved adults' physical and mental health, encouraged them back into work and helped build tight communities, the minister said. "[The classes] aren't just about utility in its narrowest sense," he said. "There are a lot of studies that show the beneficial effect adult education has on health and social interactions."
He also gets it about the utility of non-vocational learning. But, and there is always a but, he is a Tory and ultimately this is translated into a curious amalgam of a lack of substance in terms of policy and a sense of the absurd.
Hayes said courses such as dance or flower arranging were "arguably more important" in times of financial constraint because they made people happy.
So, after New Labour's commitment to make lifelong learning central to the new 'knowledge economy' (and then trashing it), we now see adult education advocated as a new opiate of the masses. Flower arranging as a compensation for losing your job. It isn't convincing, reflects a stereotype of the enormous variety of activities that fell under the lifelong learning banner, whilst the creation of a happy subservience doesn't encompass the vision that made so many of us give our working lives to adult education, before departing with some bitterness and a severance payment.

How to be a nuisance

Go here whenever anyone is enjoying a bit of peace and quiet and turn those speakers up. They work like this you know.

UPDATE

This is even worse.

(Ta Will)

Monday, June 14, 2010

The only way ...

...to watch the World Cup.

Especially posted for mikeovswinton, yes only two Euros for one and a half litres. Mmm ... taste that pine resin.

Sanity ...

...from Larry Elliott:
The determination to cut budget deficits in these circumstances does not show that policymakers of probity and integrity have replaced the irresponsible spendthrifts of 2008 and 2009. It shows that the lunatics are back in charge of the asylum.

Sunday, June 13, 2010

Insanity

"So remember this: the imposition of futile misery is not an act of wise policy, but rather a sign of folly."
From an open letter to George Osborne from Martin Wolf on the economic policy of the new UK government and, implicitly, on the austerity programmes currently being imposed across Europe (quoted here).

Saturday, June 12, 2010

Back to Greece


It is a long journey going overnight via Athens, made more so by the bus from Volos taking a detour to drop some elderly people off in the village of Xinovrisi, blocking the narrow road for an eternity whilst the old man gathered his shopping as it had spilt all over the baggage compartment. Now, I can look out on an impossibly green garden for this time of year after a wet spring. Bird song is everywhere, the nightingale was blasting out all night long, and now it is hot enough for the cicadas to start up their constant summer row. And this is when my early retirement pays off. I shall be here all summer so who knows what you will get on this blog and how often.

Now, with a few chores done in the cool of the early morning it is time for some serious sitting in the shade of the vine.

Friday, June 04, 2010

Big is not always beautiful

A friend has emailed me some notes from one of those grim conferences that work decide that people must go to. One presentation was given by a consultant styling himself as a "Public Cost Reduction Specialist". I am quoting from the notes, rather than from any published documentation, with permission from my friend. They provide a glimpse of the workings of Conservative thinking on the Big Society, the idea of a limited state but with an active citizenry.

I suppose the one thing that the seminar showed was just how seriously this was being taken and I doubt whether the new coalition would put much of a brake on any real policies that emerged. There is an ideological preference within both the Tories and the Orange Book Liberals for this approach to the public sector, though it is hard to see where the demand lies outside the political class. A general distrust of politicians has not produced a populist upsurge in this country to match the Tea Party movement, "antipolitical Jacobins" as Mark Lilla describes them in this essay from the New York Review of Books.
The new Jacobins have two classic American traits that have grown much more pronounced in recent decades: blanket distrust of institutions and an astonishing—and unwarranted—confidence in the self. They are apocalyptic pessimists about public life and childlike optimists swaddled in self-esteem when it comes to their own powers.
I see no sign of this in the UK (other than from religious fundamentalists and alternative health quacks!). Popular protest is more likely to arise in defence of public services, rather than to ask for them to be dismantled.

So, unsurprisingly, much of the urgency behind the approach seems to come from a desire to cut costs and to reduce deficits, rather than from popular demand for change. Empowerment, individual autonomy and the breaking of dependency are the rhetorical justifications for a policy of reduced central government expenditure. It is a way of making cuts sound nice.

So what does this mean in practice? Firstly, it means marketisation and competition in the public sector to "empower" the consumer through consumer choice, thereby raising productivity and putting downward pressure on "wage inflation" in the public sector. This is all depressingly familiar and not new at all. They are the same assumptions that underpinned New Labour's public service reform agenda. The objections are the same too - public services are not the same as consumer goods, quality often rests on lower productivity (teachers with smaller class sizes, social workers with lower case loads, etc.) and consumer choice is not ownership and control.

You can see the difference between the parties though in health care. Instead of setting targets and performance indicators, marketisation will mean that prices will be set for hospitals to do given procedures, thus incentivising hospital managers to improve productivity and carry out more (just like the US insurance system - and in the same way it can lead to rampant over-medication).

The consultant also seemed taken with behavioural economic notions like the fashionable "nudge", as well as other fads, thinking that economic policy can be used to shape human behaviour - in the direction he wants it to go of course. Apparently, this process of subliminal social control is known as "libertarian paternalism" (an oxymoron if ever I have seen one).

What got to me most was the discussion of public libraries where he suggested a neat and cheap way to meet the demands of those who protest at library closures.
"Well,... if you look at the demographics of people volunteering to work at Oxfam shops, its nearly always the same as the demographic of people who campaign to keep libraries open...

Why not let the volunteers run the libraries! And you could have Libraries open 24 hours with this arrangement! And you could do deals with WH Smith to sell remaindered books!"
Hmm... Leaving aside the fact that going to a library at 3.00 am, staffed by an unpaid, well-meaning insomniac, to access a stock of remaindered books is not the most attractive vision, this is horribly simplistic. People campaign to keep a professional service going, not to make an opportunity for themselves for unpaid work. There is so much more besides ...

As well as cuts, there is a second agenda lurking around. The consultant continued,
"Of course although eventually government will give freedom, in the initial stages government will have to be quite hard, and tough with local authorities in ensuring they become sufficiently liberated and fully utilise their new found freedoms ... we know that ... even if you throw open the doors of an asylum, some people will always just creep off and cower in a corner rather than running away."
I see. The power being given away is not central government's - it is local government's. And to do this, central government will have to increase its power and control. This is a rather old-fashioned political struggle against municipal local authorities who are often the power base of other parties and work, in part, in variance to central government policies.

What this reminded me of was Jacob Levi's demolition of another associated piece of fashionable nonsense, Philip Blond’s Red Toryism. Remember these are Conservative Party ideas and Levi describes the social base of much conservatism in this way:
... conservatism is the party of the traditional elite, drawing on the votes or social support of those they have traditionally dominated. It is the alliance the aristocrat offers the peasant against the tacky, educated, often-Jewish new money city slicker; and the aristocrat sets the terms of the alliance.
This could not be a more fitting description of these proposals. The independent sector is being offered a deal and the terms of that deal, as well as the control of funding, is set by central government.

Thus the big society vision stands in opposition to democratic decentralisation and representative local democracy. It enhances central government control through purse strings rather than targets, though I see that central control of the school curriculum is also being embraced with enthusiasm. It also opens the way for the politics of communalism, funding independent power bases that can be used for advancing of narrow ideological and sectarian aims.

I must make it clear that I have no hostility to the voluntary and community sector. I worked closely with it in running adult education programmes, but it does not match the stereotypical view embraced by this consultant. It works in partnership with local authorities and other public bodies, not against them, and it is professional, most staff are paid for their work. It is a key player in regeneration and community development. However brilliantly it does some things, it is only too aware of the tensions between central funding and autonomy, a factor absent from the consultant's vision.

There is something to be learnt here from adult education too. There has been a hidden privatisation. As classes have closed, students and tutors have set up their own programmes on their own terms. Free from appalling bureaucracy, people can learn together as they want. And most importantly, they have direct ownership, no one can close their courses or take their classes away from them, as has happened in the past. There are problems with comprehensive coverage, access and qualifications for those that want them, but it could be the basis for a renaissance of dedicated adult learning.

This would seem to support the assumptions about the Big Society, as would some of the anarchist ideas of the late Colin Ward, but this is not the case. Autonomy is not something that is granted, and funded, by a central government or an elite. Nor is it about behaving in a socially acceptable way. It is is about self-organisation and self determination; it is taken, not given.

It is early days for the new government so who knows whether any of this will eventually see the light of day. Parties in opposition are very fond of flirting with ideas that they then abandon when faced with the realities of government and the attraction of exercising power. All I know is that if I had responsibility for cutting expenditure, Public Sector Cost Reduction Specialists would be the first for the chop.

Saturday, May 29, 2010

Dwileing away the time

The ancient (is it 'eck; it was really invented in the 1960's) sport of Dwile Flonking is now doomed by binge drinking regulations.
...a council has warned bosses at the Dog Inn that they could be in breach of the the Licensing Act 2003 (Mandatory Licensing Conditions) Order 2010 if they stick to the age-old rules of the game ... North Norfolk District Council said the legislation, which came into effect in April, made it illegal to promote "speed drinking".
Where is Henry Porter when you really need him?

Friday, May 28, 2010

Manchester and Mahler

Last night was the penultimate concert of the Mahler cycle in Manchester, the Ninth Symphony, to my mind the finest piece Mahler wrote, with its agonisingly beautiful finale of life fading away. It was a fine performance and was recorded for BBC Radio 3. It can be heard on Monday at 19.00 and on BBC iPlayer for a limited period.

This YouTube is a remarkable clip of Leonard Bernstein in rehearsal and performance, talking through his interpretation of the symphony's finale.

Thursday, May 27, 2010

Austerity

Patrick Barkham reports from "the most indebted country in the EU"; not Greece - Ireland.
For a decade, the "celtic tiger" economy was the poster child of free-market globalisation. Now, this bedraggled alley cat of an economy is neo-liberalism's favourite example of how to cut your way to recovery. Ireland's government has slashed public sector spending by 7.5% of gross domestic product with a series of drastic cuts this year: public sector pay by 15%, child benefit by 10%, unemployment benefit by 4.1%. Another €3bn will be removed next year, a total of 10% of GDP over three years: these measures are equivalent to the British government slashing its budget not by the £6.25bn planned by George Osborne in 2010, but by an incomprehensibly gigantic £150bn.

Yet despite the cuts, dubbed "masochistic" by the Financial Times, Ireland's debt is still growing, thanks to the desperate bailing out of its banks. Irish critics fear this economic death-spiral could lead to a decade of grinding austerity, a generation lost to unemployment and, worse, the return of a spectre that has haunted Ireland for two centuries: mass emigration.

Meanwhile, one of the better bloggers from Greece looks at life in Thessaloniki.

Sometimes it's the little thing that show you how grim things are getting here in Thessaloniki, the long lines of taxis waiting at ranks for customers to turn up even in the middle of the day when up till recently getting a cab was next to impossible. Or perhaps its the accents of wandering street vendors who are now more likely to be people from the city than some recently arrived immigrant from West Africa or a member of Greece's Rom community. The city centre has become a near ghost town on week nights, a mere shadow of its former, vibrant self with cafes uncharacteristically quiet and empty streets, this in a place that prided itself on 4am traffic jams.
He also links to this post about Latvia and its "internal devaluation" (a process bluntly described by Paul Krugman here)
Anyway, the essential thrust of the concept is that a country in a fixed exchange rate regime can still manage its relative competitiveness by reducing its labour costs through fiscal measures. For example, a country could finance a decrease in payroll taxes through increased income taxes. Such a shift reduces real labour costs and therefore increases the competitiveness of exports - while also being budget neutral and reducing consumer demand in that country. In theory, it therefore achieves a similar outcome as a currency devaluation...

In Latvia's circumstances, it seems that the term has departed somewhat from its original meaning. The IMF sponsored plan calls for 20% cuts in public sector wages, 20% cuts in pensions, an increase in VAT from 21% to 23%, rises in the average effective rate of personal income tax etc... There isn't much focus on labour productivity or unit costs. It's simply reduce the budget deficit at all costs.
And now there's Italy ... and so on and so on. And this is just the beginning of what promises to be a major European deflation in response to the public deficits that have rocketed and not just through 'profligacy'. As Edward Hugh notes, "another significant part of rising state indebtedness comes from having recently bailed out a significant chunk of the private sector".

I don't have the expertise to comment on the economics of this policy, other than to express a sense of unease and anger at the social cost. I certainly wonder if this is the wisest way to tackle the crisis. Treating this as a budgetary problem rather than a human one, other than by the routine expression of a sense of regret at the resultant 'pain' from people who will not feel it themselves, means that there is a danger of seeing the policy as somehow socially neutral, not having profound, and mainly unintended, political consequences. The historical precedents are certainly not encouraging, though economies and democratic societies are stronger than they were in the 1930s. Yet what is coming from the mainstream left? Nothing; no challenge to orthodoxy can be heard, no heretical voices. And this intellectual vacuum is the most worrying aspect of all about an economic crisis that is far from over.

Tuesday, May 25, 2010

Don't mention the Euro

Despite the successful vote in the German Parliament, some Germans are still peevish about the Greek bailout.
Cabaret artists have been making jokes about wheelbarrows of notes, or telling the one about the German and the Greek who go out to eat, the German choosing the cheapest item on the menu, the Greek gorging on a range of dishes, before the waiter brings the German the bill at the end. The audience doubles over.
But Stephanie Flanders raises a very salient point:
Whenever Germany tells you how much the Greeks are costing them, remember this: German exports to Greece have risen by 133% since the single currency started. Greek exports to Germany have risen by 13%. The resulting trade gap between the two countries is one reason why German banks are now sitting on so much Greek debt.
So maybe this is the time for a lesson in careful diplomacy.

Sunday, May 23, 2010

Reasons to be cheerless

John Harris fingers the tone of the leadership debate in the newly defeated Labour Party.
You hear it in the pronouncements of the supposed leading candidates, and in anxious chatter around Westminster. The C2s – skilled manual workers, whose loyalties play a crucial role in so many marginals – have deserted Labour in droves, particularly men. Their key complaints are about supposed welfare malingerers, and new arrivals from abroad; and this is where Labour must focus that time-honoured ritual known as "listening and learning". So it is that the future of centre-left politics occasionally threatens to come down to kicking the dispossessed, and parroting the early summer's big Labour mantra: immigration, immigration, immigration.
He is pointing to a threat that the route to electoral recovery will be sought through pandering to a patronising and fictional vision of the atavistic instincts of a mythical white working class. He continues,
And on these most fundamental of issues, Labour's danger is not that long-imagined lurch to the left, but an ugly and reactionary step in the opposite direction.
I hope he's wrong.