Credit crunch ...food inflation ...property price crash ...Yet the UK's super-rich have never been richer reports the BBC . The richest 1,000 people in Britain have seen their wealth quadruple under Labour, according to The Sunday Times Rich List published today.
The top 1,000 richest people in the country now have more than £400 billion between them, it estimates - up almost £53 billion in the last year. A fortune of £80m is needed to be one of Britain's richest 1,000 people - up from £70m in 2007.
Philip Beresford, who has compiled the list since it was first published in 1989, said: "Until now, the 11 years of Labour government have proved a boon for the super-rich, rarely seen before in modern British history..."
“The 11 years of Labour have been absolutely fantastic for the super-rich,” said Philip Beresford, “Having a friendly Labour government has almost been better than having a Tory one..."
RICH LIST TOP 10
Lakshmi Mittal, steel (£27.7bn)
Roman Abramovich, oil and industry (£11.7bn)
The Duke of Westminster, property (£7bn)
Sri and Gopi Hinduja, Industry and finance (£6.2bn)
Alisher Usmanov, Steel and mines (£5.7bn)
Ernesto and Kirsty Bertarelli, pharmaceuticals (£5.6bn)
Hans Rausing and family, packaging (£5.4bn)
John Fredriksen, shipping (£4.6bn)
Sir Philip and Lady Green, retailing (£4.3bn)
David and Simon Reuben, property (£4.3bn
The Glasgow & Edinburgh Branches Blog. Towards a better understanding of the world, in order to change it.
Sunday, April 27, 2008
Saturday, April 26, 2008
THE NAME IS BOND - CAPITALIST BOND
Capitalism pervades everything in modern society. If you buy a football shirt it will advertise a beer or a soft drink. Formula 1 car racing would be impossible if advertising logos didn't cover every space on the cars and the drivers. It is in the entertainment business though that this pervasive influence is growing at an astonishing speed. "The name is Bond, James Bond. And he likes his Martinis shaken, not stirred. That is, as long as they are Smirnoff. Product placement is playing an increasingly important role in Hollywood blockbusters. The last Bond film bore a string of high-end sponsors, such as Omega, Sony, Ford and Sony Ericsson. Television shows have also lured advertisers, often preferring product placement or sponsorship over traditional advertising. .. The expectation is that television advertising will become more about the 30-minute sponsored advertisement than the 30-second shot." (Times, 21 March) RD
Friday, April 25, 2008
health of the workers
Yet another finding that being poor increases the chances of an early death .
A clear link between wealth and health has been highlighted in a study of middle-aged Americans. Being better-off was associated with a significantly lower risk of stroke between the ages of 50 and 64. Other findings linked a lack of wealth with higher blood pressure, excessive weight, diabetes and heart disease.
Scientists analysed data from 19,445 men and women involved in in the University of Michigan Health and Retirement Study which surveys people aged 50 and over every two years. Over an average period of eight-and-a-half years, a total of 1542 of the participants suffered a stroke.
The researchers divided the participants' wealth levels into six categories. They found that the 10% at the bottom of the wealth ladder had three times more stroke risk between the ages of 50 and 64 than those at the top, excluding the "ultra-rich".
Dr Mauricio Avendando, from the Erasmus Medical Centre in Rotterdam, the Netherlands, who co-led the research, said:
"Lack of material resources themselves, and particularly wealth, appear to strongly influence people's chances to have a first stroke."
There should be a health warning placed upon every worker - wage slavery can lead to premature death .
A clear link between wealth and health has been highlighted in a study of middle-aged Americans. Being better-off was associated with a significantly lower risk of stroke between the ages of 50 and 64. Other findings linked a lack of wealth with higher blood pressure, excessive weight, diabetes and heart disease.
Scientists analysed data from 19,445 men and women involved in in the University of Michigan Health and Retirement Study which surveys people aged 50 and over every two years. Over an average period of eight-and-a-half years, a total of 1542 of the participants suffered a stroke.
The researchers divided the participants' wealth levels into six categories. They found that the 10% at the bottom of the wealth ladder had three times more stroke risk between the ages of 50 and 64 than those at the top, excluding the "ultra-rich".
Dr Mauricio Avendando, from the Erasmus Medical Centre in Rotterdam, the Netherlands, who co-led the research, said:
"Lack of material resources themselves, and particularly wealth, appear to strongly influence people's chances to have a first stroke."
There should be a health warning placed upon every worker - wage slavery can lead to premature death .
Thursday, April 24, 2008
NOT TOO TOUGH
"A handful of the City's top hedge fund managers shared an extraordinary payout of more than $2 billion last year as star dealers profited from the meltdown in America's sub-prime mortgage markets. Top of the UK list of mega-earners for the year were Noam Gottesman and Pierre LaGrange, the two co-founders of GLG Partners, the $24 billion London based hedge fund. Mr Gottesman and Mr LaGrange were paid a staggering $350 million each, according to Alpha, a specialist hedge fund magazine that yesterday published a list of the top 50 best-paid managers worldwide for 2007." (Times, 16 April) RD
TOUGH AT THE TOP?
"At £70,000 for only 50 minutes' effort, it works out at a rate of £80k an hour. Amazingly, canny Paris Hilton got paid that incredible sum just for turning up at trendy Mayfair nightclub Mahiki on Monday night. But does the It Girl appreciate her good fortune? Hardly. We can reveal the heiress turned up two hours late for her appearance at Prince Harry's favourite watering hole. (Daily Mirror, 16 April) RD
NO OLD BANGERS HERE
"A Bentley Arnage, the marque's top-of-the-range vehicle, costs between £170,000 and £230,000 for the Brooklands coupe version. The Continental, a sporty and cheaper model, starts at £125,000." (Times, 27 April) RD
LEST WE FORGET
Amongst the most awful diseases that may strike us, surely one of the worst must be Alzheimer’s, the one that hits us when we are old and ruins our memory. The capitalist class can look after their elderly but workers are forced to rely on the NHS.
"Nearly 100,000 patients with Alzheimer's a year will be refused drugs that could delay the onset of the disease, the Court of Appeal has heard. ...NICE guidance in 2001 recommended the drugs - which can make it easier to carry out everyday tasks - should be used as standard. But advice published in November 2006, stated that the drugs should only be prescribed to people with moderate-stage disease. NICE said the drugs, which cost about £2.50 a day, did not make enough of a difference to recommend them for all patients and were not good value for money." (BBC News, 15 April)
Needless to say the National Institute for Health and Clinical Excellence (NICE) do not instruct the capitalist class not to waste £2.50 a day on their parents or grandparents. Only workers are told it is not "good value for money". RD
"Nearly 100,000 patients with Alzheimer's a year will be refused drugs that could delay the onset of the disease, the Court of Appeal has heard. ...NICE guidance in 2001 recommended the drugs - which can make it easier to carry out everyday tasks - should be used as standard. But advice published in November 2006, stated that the drugs should only be prescribed to people with moderate-stage disease. NICE said the drugs, which cost about £2.50 a day, did not make enough of a difference to recommend them for all patients and were not good value for money." (BBC News, 15 April)
Needless to say the National Institute for Health and Clinical Excellence (NICE) do not instruct the capitalist class not to waste £2.50 a day on their parents or grandparents. Only workers are told it is not "good value for money". RD
Poor little rich Guy
Guy Ritchie has complained that British people are being priced out of the property market by "big money" foreigners who are buying all the desirable properties in central London. The film-maker and husband of Madonna railed against the rising price of property saying it was almost impossible to buy a house in central London "unless you've got 10 million quid".
Madonna and Guy's homes
* A £7m family townhouse in Marylebone
* A £6m, 10-bedroom property next door
* Two mews cottages close to the Marylebone house, one bought for £900,000
* Two properties used by the Kabbalah religious sect: a £3.6m building in the West End used as its headquarters and a £1.6m five-storey townhouse in Regent's Park
* A 1,200-acre estate in Wiltshire, bought for £9m
* An £8m house in Beverly Hills
* An apartment in New York
Madonna and Guy's homes
* A £7m family townhouse in Marylebone
* A £6m, 10-bedroom property next door
* Two mews cottages close to the Marylebone house, one bought for £900,000
* Two properties used by the Kabbalah religious sect: a £3.6m building in the West End used as its headquarters and a £1.6m five-storey townhouse in Regent's Park
* A 1,200-acre estate in Wiltshire, bought for £9m
* An £8m house in Beverly Hills
* An apartment in New York
another failed reform target
Ministers have been accused of doing too little to cut the bills of 4.5 million people suffering fuel poverty despite promising extra help for the most needy households. Campaigners said almost one in five householders were living in fuel poverty and that ministers faced missing targets for eliminating fuel poverty by 2016.
Dave Prentis, Unison's general secretary, said many of his members were forced to choose between food and heating last winter.
Campaigners, union leaders and opposition MPs dismissed as inadequate a package of measures announced to cut the number of people forced to spend more than 10 per cent of their income on fuel bills.
Dave Prentis, Unison's general secretary, said many of his members were forced to choose between food and heating last winter.
Campaigners, union leaders and opposition MPs dismissed as inadequate a package of measures announced to cut the number of people forced to spend more than 10 per cent of their income on fuel bills.
Wednesday, April 23, 2008
the shopping price hike
High food costs have added £15 to a weekly supermarket shop for a family of four in the UK, new research suggests.
Comparison website MySupermarket says a basket of 24 staple items including tea bags, milk and eggs costs 15% more than it did 12 months ago. The findings are based on its price comparisons of certain everyday items at Tesco, Sainsbury's and Asda.
The increases mean that families spending an average of £100 a week on food will be spending £780 a year more at a time when customers are under increasing pressure from higher mortgage, petrol and energy costs.
Johnny Stern, managing director of MySupermarket said: "The conclusion is that supermarkets are passing on a sizeable amount of the increased costs."
The price of wheat, rice and maize have nearly doubled in the past year . Analysts have warned that the higher prices are threatening to drive an extra 100 million people worldwide into poverty.
White loaf at Sainsbury's and Tesco: 65p - up 20%
Butter: 94p - up 62%
English mild cheddar: £1.52 - up 26%
Garden peas at Tesco: £1.79 - up 63%
Basmati white rice: £1.45 - up 61%
CAPITALISM STARVES
"Haiti’s hunger, that burn in the belly that so many here feel, has become fiercer than ever in recent days as global food prices spiral out of reach, spiking as much as 45 percent since the end of 2006 and turning Haitian staples like beans, corn and rice into closely guarded treasures. Saint Louis Meriska’s children ate two spoonfuls of rice apiece as their only meal recently and then went without any food the following day. His eyes downcast, his own stomach empty, the unemployed father said forlornly, “They look at me and say, ‘Papa, I’m hungry,’ and I have to look away. It’s humiliating and it makes you angry.” (New York Times, 18 April) RD
Tuesday, April 22, 2008
The police and the class war
Scotland's rank and file police are to call for the right to strike, currently denied them by law.
Members of the Scottish Police Federation , representing ranks up to chief constable, will debate the issue at their annual conference.
Police are prohibited by law from striking. The nearest they came to industrial action was a demonstration last year when 22,000 off-duty officers south of the Border protested over the pay deal they had been given. Many officers believe not being able to strike means they enter pay negotiations at a disadvantage and there is an increasing feeling within the federation that pay levels have been slipping.
Members of the Scottish Police Federation , representing ranks up to chief constable, will debate the issue at their annual conference.
Police are prohibited by law from striking. The nearest they came to industrial action was a demonstration last year when 22,000 off-duty officers south of the Border protested over the pay deal they had been given. Many officers believe not being able to strike means they enter pay negotiations at a disadvantage and there is an increasing feeling within the federation that pay levels have been slipping.
Scotland and the food shortages
Britain is only 70% self-sufficient in cereal grains, down from 90% in the 1980s. Scotland is even worse, at only 40%. Most of that goes into the whisky industry and to animal feed. Scotland is thus almost totally dependent on others for this most basic of commodities for human consumption, which raises the question of whether Scotland could, if need be, feed itself.
The answer is yes, but only after significant change in land use and a rather drastic adjustment of the national diet.
Professor Peter Gregory, CEO of the Scottish Crop Research Institute says: "Technically, this is not a crisis for Scotland. There is enough arable land to provide for every person in Scotland. Our cereal yields are around twice the global average."
It would be possible to start making bread for five million people living in Scotland if we switched rape fields for wheat fields.
The answer is yes, but only after significant change in land use and a rather drastic adjustment of the national diet.
Professor Peter Gregory, CEO of the Scottish Crop Research Institute says: "Technically, this is not a crisis for Scotland. There is enough arable land to provide for every person in Scotland. Our cereal yields are around twice the global average."
It would be possible to start making bread for five million people living in Scotland if we switched rape fields for wheat fields.
Monday, April 21, 2008
AN EXPENSIVE TIPPLE
"While the global credit crunch has forced many consumers to rein in spending, one Beijing-based billionaire has splashed out a record $500,000 on 27 bottles of red wine, London-based Antique Wine Company said on Saturday. The anonymous Chinese entrepreneur bought a mix of vintages of Romanee Conti, a Burgundy wine and considered to be among the world's most exclusive with only 450 cases produced each year. The client bought 12 bottles of Romanee Conti 1978, two bottles of the 1961, 1966, 1996 and 2003 and single bottles of the 1981, 1990, 1992, 1995, 1999, 2001 and 2002. "It is the highest price that has ever been achieved for a single lot," Managing Director Stephen Williams of the London- based Antique Wine Company told Reuters on Saturday. "I don't think he has bought this as an investment -- he has bought it to drink," he added. "The fine wine industry is completely immune from the global credit crunch." (Yahoo News, 19 April) RD
AN ILL DIVIDED WORLD
"Almost 30 per cent of Nepal’s 27m people live in absolute poverty or on less than $1 a day." (Financial Times, 21 April) RD
Self-interest and self -praise
Another of our ill-gotten gains series
Equitable Life has enlarged the pay package of its chief executive, Charles Thomson. Thomson's total rewards rose by 22% to top £1million. Thomson's package included salary of £453,973, a salary-related bonus of £199,305, and a discretionary bonus of half his salary - the maximum permitted under an "annual retention bonus scheme for senior staff"
Thomson has been reprimanded by the Institute and Faculty of Actuaries for misconduct, after being found guilty of bringing the profession into disrepute over the revelation during the court action that he had faked his job reference for Equitable in 2001. He was guilty of "failure to comply with the standards of behaviour and integrity which the public and the profession might reasonably expect of a member".
Thomson had admitted in court in April 2005 that he himself was the author of the glowing reference to his "exceptional record of success" at Scottish Widows, where he was the deputy chief executive from 1995 to 2000.The reference concluded: "We will miss his intellect, integrity, and energy and feel sure he will bring great value to other organisations at the highest levels."
Nothing like a bit of self-praise and now being richly awarded above inflation remuneration .
Equitable Life has enlarged the pay package of its chief executive, Charles Thomson. Thomson's total rewards rose by 22% to top £1million. Thomson's package included salary of £453,973, a salary-related bonus of £199,305, and a discretionary bonus of half his salary - the maximum permitted under an "annual retention bonus scheme for senior staff"
Thomson has been reprimanded by the Institute and Faculty of Actuaries for misconduct, after being found guilty of bringing the profession into disrepute over the revelation during the court action that he had faked his job reference for Equitable in 2001. He was guilty of "failure to comply with the standards of behaviour and integrity which the public and the profession might reasonably expect of a member".
Thomson had admitted in court in April 2005 that he himself was the author of the glowing reference to his "exceptional record of success" at Scottish Widows, where he was the deputy chief executive from 1995 to 2000.The reference concluded: "We will miss his intellect, integrity, and energy and feel sure he will bring great value to other organisations at the highest levels."
Nothing like a bit of self-praise and now being richly awarded above inflation remuneration .
Sunday, April 20, 2008
hunger: it’s a market thing
From Ian Bell of the Sunday Herald
Lots of food, lots of hunger: it’s a market thing.
Last week the International Assessment of Agricultural Science and Technology for Development was published...Its main findings were simple enough, however. There is enough food for everyone. It is cheaper and, broadly, more nutritious than it has been in decades, but 800 million go hungry...
...there are no food shortages. Instead, according to one of those complicated theories they teach at Oxford and the like, there are money shortages. Or rather - and this is apparently so complicated it never gets discussed - some people are very short of money and some are anything but...
...The relationships between land, food security, politics and bread at £1.13 a loaf are not abstract. The laws of economics should not be mistaken for acts of God...
As Bell writes , the law of economics is not abstract but neither is it complicated . Simply put , in capitalism , if you cannot pay , you cannot have , no matter your dire need . The Socialist Party understand this , as too does the working class , even if they so far have not understood or sought the solution - socialism - and it is not more abstract analysis from philosophers and politicians that is required , instead the point now is to change the way the world is organised for the benefit of the few against the interests of the many to a system where we all enjoy the fruits of our labour . That takes political action and a political movement to organise around and that requires members and commitment.
Lots of food, lots of hunger: it’s a market thing.
Last week the International Assessment of Agricultural Science and Technology for Development was published...Its main findings were simple enough, however. There is enough food for everyone. It is cheaper and, broadly, more nutritious than it has been in decades, but 800 million go hungry...
...there are no food shortages. Instead, according to one of those complicated theories they teach at Oxford and the like, there are money shortages. Or rather - and this is apparently so complicated it never gets discussed - some people are very short of money and some are anything but...
...The relationships between land, food security, politics and bread at £1.13 a loaf are not abstract. The laws of economics should not be mistaken for acts of God...
As Bell writes , the law of economics is not abstract but neither is it complicated . Simply put , in capitalism , if you cannot pay , you cannot have , no matter your dire need . The Socialist Party understand this , as too does the working class , even if they so far have not understood or sought the solution - socialism - and it is not more abstract analysis from philosophers and politicians that is required , instead the point now is to change the way the world is organised for the benefit of the few against the interests of the many to a system where we all enjoy the fruits of our labour . That takes political action and a political movement to organise around and that requires members and commitment.
Friday, April 18, 2008
HEATHROW HOMELESS
"Each night, scores of London's homeless men and women take advantage of modern travel delays by posing as stranded passengers in order to sleep in a warm, safe place. ... Those contacted included a man sleeping under his coat, another conspicuously hiding behind an open newspaper, and a woman clutching a duty free bag, who insisted she was waiting for a flight, only to whisper when police were out of earshot, "I can't afford electricity. It's warm here. Please let me stay." (Time, 21 April) RD
Thursday, April 17, 2008
NEW SOURCE OF CONFLICT?
"Equatorial Guinea sits at the heart of a deepwater corner of the Atlantic Ocean that is of growing interest to governments from Washington to Beijing. For the US, the Gulf of Guinea is the linchpin of growing sub-Saharan African oil production. Not only is it a bulwark against the troubles in the Middle East, it is also forecast to provide a quarter of US crude oil imports by 2010. China and other emerging economic powers also see an opportunity to muscle in, attracted by promises of big infrastructure projects and a relationship that is free of the colonial baggage carried by westerners in Africa. US multinationals such as ExxonMobil, Amerada Hess and Marathon Oil have, for some time, had Equatorial Guinea handily locked down, pumping more than 350,000 barrels a day."
(New Statesman, 10 April) RD
(New Statesman, 10 April) RD
Wednesday, April 16, 2008
DYING FOR A JOB (2)
"Union leaders have expressed concern about the effectiveness of new laws on corporate homicide in Scotland. According to the Health and Safety Executive (HSE) 24 workers were killed and 2,702 people were seriously injured at their workplace in the year 2006/7.(BBC News, 6 April) RD
DYING FOR A JOB
"Fifty-four Myanmar migrants have suffocated to death in a cold storage container while being smuggled to Thailand to escape desperate conditions at home, Thai police said Thursday. The incident was the deadliest in a wave of recent tragedies as people flee economic collapse in military-ruled Myanmar and search for work in Thailand, where they often end up abused and exploited. Police said that 121 people had been crammed inside an airtight frozen seafood container measuring six metres (20 feet) long and 2.2 metres wide. Colonel Kraithong Chanthongbai, local police commander in southern Ranong province on Myanmar's border where the bodies were found late Wednesday, said the men and women were trying to get to Phuket island to work as day labourers. (Yahoo News, 10 April) RD
Tuesday, April 15, 2008
CAPITALIST PROGRESS?
"These are everyday stories in Ethiopia, which has the highest per capita rate of car fatalities in the world, with 190 deaths per 10,000 vehicles. Across sub-Saharan Africa, AIDS is the only killer more devastating than traffic for people ages 15 to 44. For children, traffic is the No. 1 killer. An African is 100 times more likely than an American to die in a car. According to the World Health Organization, Africa has 4 percent of the world's cars—but accounts for more than 11 percent of the world's traffic casualties and that is probably conservative. The WHO figures that road casualties in Africa are underreported by as much as twelvefold, and it predicts the death toll will rise an additional 80 percent by 2020, as the population grows and becomes more motorized." (Newsweek, 14 April) RD
HUNGER AMIDST PLENTY
"Food prices in Haiti are reported to have increased by 50 to 100 per cent in the last year. The population are particularly vulnerable because almost four-fifths live on less than $2 a day." (Times, 14 April) RD
Monday, April 14, 2008
AN UPPER CLASS TWIT
Boris Johnson speaks
" I can hardly condemn UKIP as a bunch of boss-eyed, foam-flected euro hysterics, when I have been sometimes not far short of boss-eyed, foam-flected hysteria myself (2004)."I can't remember what my line on drugs is. What's my line on drugs? (2005) "What ever James Oliver says, McDonald's are incredibly nutritious and, as far as I can tell, crammed full of vital nutrients and rigid with goodness. (2005) The awful truth is that people do take me seriously ...you must consider the possibility that underneath it all there may really lurk a genuine buffoon." (2007) (Observer Magazine, 13 April). RD
" I can hardly condemn UKIP as a bunch of boss-eyed, foam-flected euro hysterics, when I have been sometimes not far short of boss-eyed, foam-flected hysteria myself (2004)."I can't remember what my line on drugs is. What's my line on drugs? (2005) "What ever James Oliver says, McDonald's are incredibly nutritious and, as far as I can tell, crammed full of vital nutrients and rigid with goodness. (2005) The awful truth is that people do take me seriously ...you must consider the possibility that underneath it all there may really lurk a genuine buffoon." (2007) (Observer Magazine, 13 April). RD
PROGRESSING BACKWARDS
The head of the International Monetary Fund (IMF) has warned that hundreds of thousands of people will face starvation if food prices keep rising. Dominique Strauss-Kahn said that social unrest from continuing food price inflation could cause conflict. There have been food riots recently in a number of countries, including Haiti, the Philippines and Egypt." (BBC News, 13 April) RD
Sunday, April 13, 2008
A GRIM FUTURE
Recent droughts in places like Australia and Africa combined with the explosive competition inside modern capitalism has led to many experts forecasting future disasters. "In recent months the commodity prices of rice, wheat and corn has jumped 50 percent or more, pushing retail prices to levels unseen in a generation and prompting grain-exporting countries to curtail trade to suppress domestic inflation. On March 20, the World Food Program issued an emergency appeal for more funding to keep aid moving to the world's poorest countries. Last week World Bank president Robert Zoellick called for urgent global action on the part of rich nations "or many more people will suffer or starve." (Newsweek, 14 April) RD
Saturday, April 12, 2008
THE GAP WIDENS
Much is made of the progressive nature of capitalism by journalists eager to prove that it is a society that is gradually making us all better off. A dissident view has recently been aired by the journalist Phillip Blond.
"The New Economics Foundation has shown that global growth has not aided the poor. In the 1980s, for every $100 of world growth, the poorest 20 per cent received $2.20; by 2001, they received only 60 cents. Clearly neo-liberal growth disproportionately benefits the rich and further impoverishes the poor. Real wage increases in the top 13 countries of the Organisation for Economic Cooperation and Development (OECD) have been below the rate of inflation since about 1970 – a situation compounded in Britain as the measure of inflation massively underestimates the real cost of living. Thus wage earners – rather than asset owners – have faced a 35-year downward pressure on their standard of living." (Independent, 23 March) RD
"The New Economics Foundation has shown that global growth has not aided the poor. In the 1980s, for every $100 of world growth, the poorest 20 per cent received $2.20; by 2001, they received only 60 cents. Clearly neo-liberal growth disproportionately benefits the rich and further impoverishes the poor. Real wage increases in the top 13 countries of the Organisation for Economic Cooperation and Development (OECD) have been below the rate of inflation since about 1970 – a situation compounded in Britain as the measure of inflation massively underestimates the real cost of living. Thus wage earners – rather than asset owners – have faced a 35-year downward pressure on their standard of living." (Independent, 23 March) RD
Friday, April 11, 2008
A FREE SOCIETY?
"The State secret police may have died with communism but its surveillance methods are still alive at Lidl, the German supermarket chain. George Orwell's Big Brother, it seems, stalks the aisles between the cornflakes and the canned dog food, Detectives hired by Lidl - which has more than 7,000 stores worldwide, including 450 in Britain - have been monitoring romance at the cash till, visits to the lavatory and the money problems of shelf-stackers. Several hundred pages of surveillance have been passed on to Stern magazine, causing outrage among unions and data protection officials." (Times, 27 March) RD
Thursday, April 10, 2008
THIS IS PROGRESS?
Apologists for capitalism like to paint a picture of a system that is gradually improving the lot of the world's poor, but recent developments show that this is a fallacy. The development of the markets in China and India and the process of arable land being used to produce bio-fuels instead of less profitable foodstuff have led to chaos throughout the world. "Rising food prices could spread social unrest across Africa after triggering riots in Niger, Senegal, Cameroon and Burkina Faso, African ministers and senior agriculture diplomats have warned. Kanayo Nwanze, the vice-president of the United Nations’ International Fund for Agriculture, told a conference in Ethiopia that food riots could become a common feature, particularly after the price of rice has doubled in three months." (Financial Times, 4 April) RD
Capitalism's Waste
Waste & Resources Action Programme reports that a third of the food we buy, amounting to 6.7 million tonnes, gets discarded from UK households annually. Fruit and vegetables are a major component at around 40% of this. The top five fruit & vegetables which get binned without even being touched are apples (4.4 million or 179,000 tonnes pa), potatoes(5.1m or 177,000 tonnes pa), bananas (1.6m or 77,000 tonnes pa), tomatoes (2.8m or 46,000 tonnes pa) and oranges (1.2m or 45,000 tonnes). Producing, storing and getting the food to UK homes consumes much energy through transport, packaging etc. If we could stop the wastage of all this food, it would save the equivalent of at least 15 million tonnes of carbon dioxide. This would be equivalent to taking 1 in 5 cars off UK roads, according to WRAP.
The amount of discarded food-stuff is boosted by supermarket marketing promotions such as "two-for-one" deals with the result millions of Britons buy more than they need and then fail to eat much of what they bought before it goes off.
The study findings show essentially that much is discarded because it simply goes off, and storage conditions at home bear much blame. Simply storing most fresh fruit and vegetables inside the fridge keeps these foods stay fresh for up to 2 weeks longer.
Wednesday, April 09, 2008
DOUBLE STANDARDS
"Too much public money is spent on prolonging the lives of the elderly when it could be diverted to helping young offenders, according to a senior Church of Scotland minister. The Reverend Maxwell Craig, who is now retired but retains the honorary position of Extra Chaplain to the Queen in Scotland made the comments yesterday in a newspaper column.(Times, 27 March)
We are fairly certain that the reverend gentleman is complaining about the expense of keeping old workers healthy and not the Royal Family whom he serves and who have a fairly good record of longevity. RD
We are fairly certain that the reverend gentleman is complaining about the expense of keeping old workers healthy and not the Royal Family whom he serves and who have a fairly good record of longevity. RD
Tuesday, April 08, 2008
British Inequality
According to this BBC report , after 30 years of unprecedented economic growth, the British are richer, healthier - but no happier than in 1973. The main reason for the rise in wealth has been the increase in house prices. But the growing wealth has not led to greater happiness.
In 1973, 86% of people said they were satisfied with their standard of living, while in 2006 85% were satisfied. And one in six UK adults reported that they suffered from a variety of mental health problems in the latest survey, of which the largest category was "mild anxiety and depression."
The amount of goods and services purchased by UK households has risen by two and half times in thirty years.
But that increase in spending was not evenly distributed among the whole population, with the income of those in the top 10% of the income distribution going up much faster than that of households of the bottom 10%. In 1979, the real disposable income of the top 10% was three times greater than the real income of those in the bottom 10%, but by 2006 that had grown to four times greater.
And social mobility also appears to have declined, according to studies cited in the report. Children born in 1958 to poor parents coming to adulthood in the 1970s, were more likely to have moved to a higher part of the income distribution than those born in 1970, who came of age in the new millennium.
And child poverty has remained stubbornly high, with 22% of children living in relative poverty in 2005/6, compared to 27% in 1990/91.
In 1973, 86% of people said they were satisfied with their standard of living, while in 2006 85% were satisfied. And one in six UK adults reported that they suffered from a variety of mental health problems in the latest survey, of which the largest category was "mild anxiety and depression."
The amount of goods and services purchased by UK households has risen by two and half times in thirty years.
But that increase in spending was not evenly distributed among the whole population, with the income of those in the top 10% of the income distribution going up much faster than that of households of the bottom 10%. In 1979, the real disposable income of the top 10% was three times greater than the real income of those in the bottom 10%, but by 2006 that had grown to four times greater.
And social mobility also appears to have declined, according to studies cited in the report. Children born in 1958 to poor parents coming to adulthood in the 1970s, were more likely to have moved to a higher part of the income distribution than those born in 1970, who came of age in the new millennium.
And child poverty has remained stubbornly high, with 22% of children living in relative poverty in 2005/6, compared to 27% in 1990/91.
Monday, April 07, 2008
election address
What’s the alternative to the profit system?
That's the issue in this election, says THE SOCIALIST PARTY candidate in Lambeth and Southwark Danny Lambert.
On 1 May, you will have your occasional ration of democracy with the opportunity to vote for the Mayor of London and the Greater London Assembly.
It's all very well having a vote but are you normally given any real choice? Let's face it, if it wasn't mentioned on the front of the election leaflet, could you tell which party was which?
It's tempting – in the absence of any real alternative – to get drawn into the phoney war that is political debate today. Whether Labour, Tory, Lib Dem, Greens or the others, they all spout empty promises. And it all amounts to the same thing – vote, vote for us and we’ll do this, this or this for you. As if they could.
None of them offer any alternative to the present way of running society. That’s why they always fail to deliver. The profit system requires them to put profits before people, to put saving money above meeting people’s needs.
Do you really think who wins an election makes any difference to how you live?
And do politicians actually have much real power anyway?
Can they control world market and financial forces or do they have to adjust and trim their policies to fit in with these?
Reality Check
Do any of the political parties address any of the real issues:
Why can money always been found to fight a war while hospitals, schools and local services are always strapped for cash?
Why do some people get stressed working long hours while others get stressed from the boredom of unemployment?
Why are there homeless people in the streets and empty houses with "for sale" signs?
Why is there still child poverty even in Britain?
Why is there no world agreement to limit carbon emissions when scientists say this must be done to avert the threat of global warming?
Why is there world hunger in a world that can grow enough for all?
So what's the alternative?
This time, in this constituency, you have a real choice. We in THE SOCIALIST PARTY are standing to put forward an alternative to capitalism and the madness of the market – a society of common ownership and democratic control. We call it socialism.
But real socialism. Not the elite-run dictatorships that collapsed some years ago in Russia and East Europe. And not the various schemes for state control put forward by the old Labour Party. For us socialism means something better than that. We're talking about:
A world community without any frontiers where the Earth’s resources would be the common heritage of all.
Wealth being produced to meet people's needs and not for sale on a market or for profit
Everyone having access to what they require to satisfy their needs, without the rationing system that is money.
A society where people freely contribute their skills and experience to produce what is needed, without the compulsion of a wage or salary.
If you agree If you don't like present-day society ... if you are fed up with the way you are forced to live ... if you think the root cause of most social problems is the profit system, then your ideas echo closely with ours.
We are not promising to deliver socialism to you. We are not putting ourselves forward as leaders. This new society can only be achieved if you join together to strive for it. If you want it, then it is something you have to bring about yourselves. Nobody can do it for you.
If you agree with what we say, you can show this by voting for THE SOCIALIST PARTY candidate, DANNY LAMBERT.And if you want to know more about us, call in at our election office at 52 Clapham High Street, SW4 or return the reply coupon on the last page (no stamp required). You can also.phone or email us or visit our website at www.worldsocialism.org/spgb.
That's the issue in this election, says THE SOCIALIST PARTY candidate in Lambeth and Southwark Danny Lambert.
On 1 May, you will have your occasional ration of democracy with the opportunity to vote for the Mayor of London and the Greater London Assembly.
It's all very well having a vote but are you normally given any real choice? Let's face it, if it wasn't mentioned on the front of the election leaflet, could you tell which party was which?
It's tempting – in the absence of any real alternative – to get drawn into the phoney war that is political debate today. Whether Labour, Tory, Lib Dem, Greens or the others, they all spout empty promises. And it all amounts to the same thing – vote, vote for us and we’ll do this, this or this for you. As if they could.
None of them offer any alternative to the present way of running society. That’s why they always fail to deliver. The profit system requires them to put profits before people, to put saving money above meeting people’s needs.
Do you really think who wins an election makes any difference to how you live?
And do politicians actually have much real power anyway?
Can they control world market and financial forces or do they have to adjust and trim their policies to fit in with these?
Reality Check
Do any of the political parties address any of the real issues:
Why can money always been found to fight a war while hospitals, schools and local services are always strapped for cash?
Why do some people get stressed working long hours while others get stressed from the boredom of unemployment?
Why are there homeless people in the streets and empty houses with "for sale" signs?
Why is there still child poverty even in Britain?
Why is there no world agreement to limit carbon emissions when scientists say this must be done to avert the threat of global warming?
Why is there world hunger in a world that can grow enough for all?
So what's the alternative?
This time, in this constituency, you have a real choice. We in THE SOCIALIST PARTY are standing to put forward an alternative to capitalism and the madness of the market – a society of common ownership and democratic control. We call it socialism.
But real socialism. Not the elite-run dictatorships that collapsed some years ago in Russia and East Europe. And not the various schemes for state control put forward by the old Labour Party. For us socialism means something better than that. We're talking about:
A world community without any frontiers where the Earth’s resources would be the common heritage of all.
Wealth being produced to meet people's needs and not for sale on a market or for profit
Everyone having access to what they require to satisfy their needs, without the rationing system that is money.
A society where people freely contribute their skills and experience to produce what is needed, without the compulsion of a wage or salary.
If you agree If you don't like present-day society ... if you are fed up with the way you are forced to live ... if you think the root cause of most social problems is the profit system, then your ideas echo closely with ours.
We are not promising to deliver socialism to you. We are not putting ourselves forward as leaders. This new society can only be achieved if you join together to strive for it. If you want it, then it is something you have to bring about yourselves. Nobody can do it for you.
If you agree with what we say, you can show this by voting for THE SOCIALIST PARTY candidate, DANNY LAMBERT.And if you want to know more about us, call in at our election office at 52 Clapham High Street, SW4 or return the reply coupon on the last page (no stamp required). You can also.phone or email us or visit our website at www.worldsocialism.org/spgb.
AMERICAN ILLUSIONS
During the primary elections in the US much has been made of Hilary Clinton's care for the under-privileged against the super-rich, but what is the reality? "Democrat Hilary Clinton and her husband, former President Bill Clinton, have made $109 million since leaving the White House, including $51 million in speech income for Bill Clinton, according to eight years of tax records released on Friday." (Yahoo News, 4 April)
We don't take sides in this political "beauty contest". but we can recognise that all of the candidates are hypocritical self-serving people who wish to administrate the awful system of capitalism. We hate their system and we detest every one of them who try to con us. RD
We don't take sides in this political "beauty contest". but we can recognise that all of the candidates are hypocritical self-serving people who wish to administrate the awful system of capitalism. We hate their system and we detest every one of them who try to con us. RD
Sunday, April 06, 2008
CAPITALISM KILLS KIDS
"Every 17 seconds, a child in the developing world dies from water-related diseases. In around the time it takes you to read this paragraph, someone, somewhere, will die. Everyday, people in the world's poorest countries face the dilemma of having to trust their health and that of their children to the consequences of drinking water that could kill them. It's a gamble that often carries a high price - seeing a child needlessly dying is simply heartbreaking. Having access to safe, clean water and adequate sanitation are the most basic of human needs. It's something we can often take for granted. For those living in impoverished areas of the developing world the lack of access to water can be a traumatic, life or death experience they have to face every day." (Water Aid leaflet, April) RD
Child soldiers
Plans for pupils in comprehensive schools to sign up for military drills and weapons training are being backed by Gordon Brown in an attempt to improve the relationship between the public and the armed forces. A major review of the military's role in British society says that encouraging more state secondary school pupils to join the cadet corps would improve discipline among teenagers while helping to improve the public perception of the army, navy and air force.
The government-commissioned review of civil and military relations, led by Quentin Davies wants secondary school pupils to receive basic military training as a means of developing greater affiliation with the armed forces. Davies, who was a Tory MP before defecting to Labour last year, said his proposals to expand the cadet structure throughout the comprehensive system were firmly backed by the Prime Minister, the Children's Secretary Ed Balls and defence ministers. Under the new government proposals, state schools who do not set up a cadet system will encourage pupils to attend a community cadet force instead. One of the core elements of the cadets' training is mastering shooting skills and military drill.
An estimated 200,000 to 300,000 children are serving as soldiers in current armed conflicts. These young combatants participate in all aspects of contemporary warfare. They wield AK-47s and M-16s on the front lines of combat, serve as human mine detectors, participate in suicide missions, carry supplies, and act as spies, messengers or lookouts. In 2000, the United Nations adopted an Optional Protocol to the Convention on the Rights of the Child on the involvement of children in armed conflict. The protocol prohibits the forced recruitment of children under the age of 18 or their use in hostilities. To date, it has been ratified by more than 110 countries.
The ILO Convention on the Worst Forms of Child Labor prohibits the forced or compulsory recruitment of children under the age of 18 for use in armed conflict. It has been ratified by over 150 countries.
Kiddie cannon fodder by the back door is now what New Labour have lowered themselves to .
The government-commissioned review of civil and military relations, led by Quentin Davies wants secondary school pupils to receive basic military training as a means of developing greater affiliation with the armed forces. Davies, who was a Tory MP before defecting to Labour last year, said his proposals to expand the cadet structure throughout the comprehensive system were firmly backed by the Prime Minister, the Children's Secretary Ed Balls and defence ministers. Under the new government proposals, state schools who do not set up a cadet system will encourage pupils to attend a community cadet force instead. One of the core elements of the cadets' training is mastering shooting skills and military drill.
An estimated 200,000 to 300,000 children are serving as soldiers in current armed conflicts. These young combatants participate in all aspects of contemporary warfare. They wield AK-47s and M-16s on the front lines of combat, serve as human mine detectors, participate in suicide missions, carry supplies, and act as spies, messengers or lookouts. In 2000, the United Nations adopted an Optional Protocol to the Convention on the Rights of the Child on the involvement of children in armed conflict. The protocol prohibits the forced recruitment of children under the age of 18 or their use in hostilities. To date, it has been ratified by more than 110 countries.
The ILO Convention on the Worst Forms of Child Labor prohibits the forced or compulsory recruitment of children under the age of 18 for use in armed conflict. It has been ratified by over 150 countries.
Kiddie cannon fodder by the back door is now what New Labour have lowered themselves to .
Wednesday, April 02, 2008
Democracy or Feudalism
Lib Dem deputy leader , Vince Cable "It was reported this week that Her Majesty the Queen had cancelled her diamond wedding celebrations because it was judged to be inappropriate to engage in extravagance at a time of economic gloom and recession. Do you share my view that this demonstrates Her Majesty's unerring instincts for the public mood, or does the Government think she was overreacting?"
Michael Martin, The Speaker of the House of Commons "Order! You shouldn't discuss Her Majesty the Queen. The honourable member must not discuss her majesty the Queen in the house. "
According to Erskine May, the guide to parliamentary practice, "the irregular use of the Queen's name to influence a decision of the House is unconstitutional in principle and inconsistent with the independence of Parliament". It adds: "Any attempt to use her name in debate to influence the judgement of Parliament is immediately checked and censured." It says MPs have been reprimanded "or even sent to the Tower" for treasonable or seditious language "or disrespectful use of Her Majesty's name".
Lib Dem leader Nick Clegg said Parliament "is fast becoming a museum piece - a 19th-century home for our 21st-century political elite".
Michael Martin, The Speaker of the House of Commons "Order! You shouldn't discuss Her Majesty the Queen. The honourable member must not discuss her majesty the Queen in the house. "
According to Erskine May, the guide to parliamentary practice, "the irregular use of the Queen's name to influence a decision of the House is unconstitutional in principle and inconsistent with the independence of Parliament". It adds: "Any attempt to use her name in debate to influence the judgement of Parliament is immediately checked and censured." It says MPs have been reprimanded "or even sent to the Tower" for treasonable or seditious language "or disrespectful use of Her Majesty's name".
Lib Dem leader Nick Clegg said Parliament "is fast becoming a museum piece - a 19th-century home for our 21st-century political elite".
CAPITALISM HATES WOMEN
"Most women prisoners have mental health problems, and nine of out 10 were convicted of non-violent offences. Now a new study shows an alarming rise in suicides and self-harm - and behind the statistics lie ruined lives and shattered relatives." (Observer, 30 March) RD
WORDS OF WISDOM
Donald Sutherland, film actor, on religious belief. "Did you know that 54 per cent of all Americans believe that the world was created 6,000 years ago? That's 1,000 years after the Sumerians invented glue." (Observer, 30 March) RD
THE REALITY OF POVERTY
Many words can be said about the awfulness of capitalism and the poverty it breeds, but here is an ill-educated women telling it like it is "Estella Lemus, 27, cries as she describes the hunger, danger and injuries of her illegal border crossing and says she won't do it again. The seamstress, who earns up to $5 a day in her poor neighborhood north of San Salvador, worries about how she'll repay the $3,000 her family borrowed for her trip." (USA Today, 23 March) It is only one story but there are thousands. Capitalism sucks.RD
Tuesday, April 01, 2008
CLASS IN PAKISTAN
When socialists proclaim that we live in a class dominated society we are rebuked for not taking into account the dreadful poverty of some parts of Asia, but as recent reports indicate capitalism dominates Asia just as much as it does in Europe.
"Gold-trimmed SUVs idle outside parliament. Among new female lawmakers, black Muslim veils are out and Gucci bags are in. Civilian rule has returned to Pakistan, and its politicians have come back with bling. Last month's elections ushered into parliament a new crop of business leaders and wealthy elites opposed to U.S.-backed President Pervez Musharraf's one-man rule. ...Parliament's parking lot was crowded Wednesday with new Mercedes and Toyota sports utility vehicles festooned with flashy tire rims and hood ornaments. ...Economic hardships persist for most Pakistanis. Millions live in poverty despite the recent growth. The country has yet to fully overcome a severe shortage of wheat flour — a staple here — and fuel prices have spiked sharply in recent weeks." (Yahoo News, 19 March) RD
"Gold-trimmed SUVs idle outside parliament. Among new female lawmakers, black Muslim veils are out and Gucci bags are in. Civilian rule has returned to Pakistan, and its politicians have come back with bling. Last month's elections ushered into parliament a new crop of business leaders and wealthy elites opposed to U.S.-backed President Pervez Musharraf's one-man rule. ...Parliament's parking lot was crowded Wednesday with new Mercedes and Toyota sports utility vehicles festooned with flashy tire rims and hood ornaments. ...Economic hardships persist for most Pakistanis. Millions live in poverty despite the recent growth. The country has yet to fully overcome a severe shortage of wheat flour — a staple here — and fuel prices have spiked sharply in recent weeks." (Yahoo News, 19 March) RD
yet another reform failure
The gender pay gap is still growing despite more than 30 years of equal pay and sex discrimination legislation, a Scottish Government report has found.
Men in full-time employment are now paid 15% more than their female equivalents and 34% more than women in part-time work according to the annual report into the Gender Equality Scheme.The report also found wide variations between the gender pay gap in different sectors. The gap ranges from 2% in sales and customer service occupations to as high as 28.1% for managers and senior officials.
Chris Benson, a solicitor who works with the UK-wide Support Equal Pay campaign group, said of the findings: "It is really disappointing that, despite government efforts, the pay gap is still growing..."
Men in full-time employment are now paid 15% more than their female equivalents and 34% more than women in part-time work according to the annual report into the Gender Equality Scheme.The report also found wide variations between the gender pay gap in different sectors. The gap ranges from 2% in sales and customer service occupations to as high as 28.1% for managers and senior officials.
Chris Benson, a solicitor who works with the UK-wide Support Equal Pay campaign group, said of the findings: "It is really disappointing that, despite government efforts, the pay gap is still growing..."
Monday, March 31, 2008
WORDS OF WISDOM
"The famed science fiction writer, who once denigrated religion as "a necessary evil in the childhood of our particular species," left written instructions that his funeral be completely secular, according to his aides. "Absolutely no religious rites of any kind, relating to any religious faith, should be associated with my funeral," he wrote. (Yahoo News, 19 March) RD
A BLEAK FUTURE
"A world without fresh water would be a world bereft of humans, and yet one in five people lacks regular access to this most basic of life-sustaining substances. By 2025, fully a third of the planet's growing population could find itself scavenging for safe drinking water, the United Nations has warned ahead of World Water Day on Saturday. More than two million people in developing countries -- the vast majority children -- die every year from diseases associated with unsanitary water. Desperation forces people to consume these contaminated waters. ..."Poor sanitation combines with a lack of safe drinking water and inadequate hygiene to contribute to the terrible global death toll," UN Secretary-General Ban Ki-moon said earlier this month. "Every 20 seconds, a child dies as a result of the abysmal sanitation conditions endured by some 2.6 billion people globally," he said in launching the International Year of Sanitation." (Yahoo News, 19 March) RD
Edukashun
Fewer pupils from deprived backgrounds are going to university in Scotland despite a raft of initiatives to widen participation, according to a new report.
In 2006-07, just 14% of school-leavers from secondaries in the lowest participation areas for higher education went to university compared to 19% in 2002-03. Over the same period, the proportion of pupils from the schools which enjoy the highest rates of progression to higher education has fallen only slightly, from 31% to 29%.
One of the aspirations of the government expansion of higher education in the mid-1980s, and then again in 1992, was to allow wider participation, but the main beneficiaries have been the "middle" classes.
John McClelland, chairman of the Scottish Funding Council said more should be done to address inequalities of opportunity.
A Scottish Government spokesman said: "It is unacceptable that an educational gap between advantaged and disadvantaged people opens up early in a child's life and continues throughout."
Yet another failure of well-meaning palliatives .
Socialist Courier also wonders if the UK will follow the growing trend in the American student loan market where banks including HSBC, have pulled out . In the US, many undergraduates take out a federal guaranteed loan and top up their financial needs with a private loan from lenders such as Bank of America, JPMorgan Chase and Citi-group. In the academic year 2005-06, $17 billion in private student loans was used to finance higher education. Banks have become reluctant to offer private student loans because worsening credit conditions have meant that they cannot package up the loans and sell them on. The brightest students who win places at America’s rich Ivy League universities will be affected less because of generous bursaries - which do not have to be repaid – less able students applying to other institutions are expected to face difficulty in securing private loans to fund their study. At one end of the field is Harvard University, with $34 billion of endowments, and at the other are many community colleges and low-tier universities with limited resources.
"...those students with poor credit scores or without the rich uncle co-signers [loan guarantor] may have real problems funding themselves.” The Consumer Bankers’ Association, said
In 2006-07, just 14% of school-leavers from secondaries in the lowest participation areas for higher education went to university compared to 19% in 2002-03. Over the same period, the proportion of pupils from the schools which enjoy the highest rates of progression to higher education has fallen only slightly, from 31% to 29%.
One of the aspirations of the government expansion of higher education in the mid-1980s, and then again in 1992, was to allow wider participation, but the main beneficiaries have been the "middle" classes.
John McClelland, chairman of the Scottish Funding Council said more should be done to address inequalities of opportunity.
A Scottish Government spokesman said: "It is unacceptable that an educational gap between advantaged and disadvantaged people opens up early in a child's life and continues throughout."
Yet another failure of well-meaning palliatives .
Socialist Courier also wonders if the UK will follow the growing trend in the American student loan market where banks including HSBC, have pulled out . In the US, many undergraduates take out a federal guaranteed loan and top up their financial needs with a private loan from lenders such as Bank of America, JPMorgan Chase and Citi-group. In the academic year 2005-06, $17 billion in private student loans was used to finance higher education. Banks have become reluctant to offer private student loans because worsening credit conditions have meant that they cannot package up the loans and sell them on. The brightest students who win places at America’s rich Ivy League universities will be affected less because of generous bursaries - which do not have to be repaid – less able students applying to other institutions are expected to face difficulty in securing private loans to fund their study. At one end of the field is Harvard University, with $34 billion of endowments, and at the other are many community colleges and low-tier universities with limited resources.
"...those students with poor credit scores or without the rich uncle co-signers [loan guarantor] may have real problems funding themselves.” The Consumer Bankers’ Association, said
Sunday, March 30, 2008
HEARTLESS CAPITALISM
"Genzyme, a Massachusetts-based biotechnology company, has long charged more than $300,000 a year for typical patients on Cerezyme, a drug used to treat Gaucher disease, a rare, sometimes fatal, inherited disorder that can cause enlarged livers and spleens, anemia and bone deterioration. Cerezyme, which is administered intravenously, eases their symptoms. ...The experience with Cerezyme and other biological drugs defies conventional wisdom on drug marketing, which holds that blockbuster drugs — generating revenues of a billion dollars a year or more — are generally those that can be sold to vast numbers of people. But Genzyme has made Cerezyme a blockbuster, with sales of $1.1 billion last year, by charging very high prices for a few thousand patients. That could bode ill for efforts to curb health care costs if, as expected, the future of medicine lies in targeting treatments to limited numbers of patients most likely to benefit from them. The company is essentially exploiting a monopoly position to charge what the market will bear to treat desperate patients with no other option. (New York Times, 23 March) RD
The reward for failure
We read Northern Rock's former boss Adam Applegarth received a £750,000 pay-off when he left last December. Applegarth, who is 46, is also entitled to draw on a pension pot of £2.5m at the age of 55 . Experts say that could bring him retirement benefits of up to £200,000 a year.
As we all have read Northern Rock collapsed and bad management was a factor in this bank's demise . So is this a capitalism's reward for failure ?
Many of us facing attacks on our final salary pension schemes will also be wondering why we have to work longer for less while the rich can dip into a retirement pot of gold .
As we all have read Northern Rock collapsed and bad management was a factor in this bank's demise . So is this a capitalism's reward for failure ?
Many of us facing attacks on our final salary pension schemes will also be wondering why we have to work longer for less while the rich can dip into a retirement pot of gold .
Friday, March 28, 2008
Council Leaders Fat Cats
The number of "fat cat" council bosses being paid more than £100,000 a year has risen by 25%, new figures show.
A town hall "rich list" revealed that 818 local authority bosses now earn more than £100,000. In 2005-06 it was 645.
The average pay package for those on the list was more than £120,000 - nearly five times the starting wage of a police constable. Fourteen earned more than the prime minister's £188,000 annual salary, while six received more than £200,000 from the public purse.
Despite Gordon Brown's demand for an inflation-guarding 2% cap on public sector wage settlements, top council bosses enjoyed an average rise of 4.6% - more than double that of last year.
"Too often, council executives are rewarded handsomely even when they fail," said the chief executive of the pressure group TaxPayers' Alliance .
The top 10 best-paid council officials, 2006-07
1. Northamptonshire: Peter Gould, chief executive, £215,000
2. City of Kingston-upon-Hull: Kim Ryley, chief executive, £213,162
3. Kensington and Chelsea: Derek Myers, town clerk and chief executive, £205,000
4. Northampton: Mairi Mclean, chief executive, £205,000
5. Bexley: Nick Johnson, chief executive, £203,000
6. Hertfordshire: Caroline Tapster, chief executive, £201,485
7. Ealing: Darra Singh, chief executive, £195,456
8. Surrey: Dr Richard Shaw, chief executive, £195,330
9. Cambridgeshire: Ian Stewart, chief executive, £195,000
10. Westminster: Peter Rogers, chief executive, £195,000
A town hall "rich list" revealed that 818 local authority bosses now earn more than £100,000. In 2005-06 it was 645.
The average pay package for those on the list was more than £120,000 - nearly five times the starting wage of a police constable. Fourteen earned more than the prime minister's £188,000 annual salary, while six received more than £200,000 from the public purse.
Despite Gordon Brown's demand for an inflation-guarding 2% cap on public sector wage settlements, top council bosses enjoyed an average rise of 4.6% - more than double that of last year.
"Too often, council executives are rewarded handsomely even when they fail," said the chief executive of the pressure group TaxPayers' Alliance .
The top 10 best-paid council officials, 2006-07
1. Northamptonshire: Peter Gould, chief executive, £215,000
2. City of Kingston-upon-Hull: Kim Ryley, chief executive, £213,162
3. Kensington and Chelsea: Derek Myers, town clerk and chief executive, £205,000
4. Northampton: Mairi Mclean, chief executive, £205,000
5. Bexley: Nick Johnson, chief executive, £203,000
6. Hertfordshire: Caroline Tapster, chief executive, £201,485
7. Ealing: Darra Singh, chief executive, £195,456
8. Surrey: Dr Richard Shaw, chief executive, £195,330
9. Cambridgeshire: Ian Stewart, chief executive, £195,000
10. Westminster: Peter Rogers, chief executive, £195,000
Thursday, March 27, 2008
HOME OF THE BRAVE
"The homeless population of New Orleans since Hurricane Katrina has reached unprecedented levels for a U.S. city: one in 25 residents. An estimated 12,000 homeless accounts for 4% of New Orleans' estimated population of 302,000, according to the homeless advocacy group UNITY of Greater New Orleans. The number is nearly double the pre-Katrina homeless count, the group says." (USA Today, 16 March) RD
Credit Crunch - Not for everyone , it seems
Bob Diamond, the US banker who runs Barclays' investment banking arm, has cemented his position as one of the highest paid bosses in a FTSE 100 company after receiving almost £36m last year. The figure comprises £21m in cash, bonuses and shares in addition to £14.8m from a three-year performance plan. The £21m includes his £250,000 base salary, £6.5m cash bonus, a £11.3m share award held in a trust for three years and £3m of shares which will be received in three years provided performance criteria are achieved. His total is boosted by the £14.8m "retained incentive opportunity" - half in cash, half in shares - put in place three years ago when he joined the Barclays board.
Diamond achieved the bonus even though Barclays took a £1.6bn hit from the sub-prime crisis in the US and despite ongoing financial woes which have seen billions wiped off share values worldwide. The bank's profits in 2007 were £7bn, the same as 2006, and its share price has suffered.
The report published yesterday also exposed the pay to bankers working on takeovers. Barclays paid one former director £600,000 a month during the bank's ill-fated bid for Dutch rival ABN Amro. Naguib Kheraj received the sum, plus £14,178 a month in benefits, from May to December 2007 for a "corporate finance advisory role". The £4.9m he received was in addition to the £657,000 he was paid to the end of April while he helped his successor settle in.
Diamond achieved the bonus even though Barclays took a £1.6bn hit from the sub-prime crisis in the US and despite ongoing financial woes which have seen billions wiped off share values worldwide. The bank's profits in 2007 were £7bn, the same as 2006, and its share price has suffered.
The report published yesterday also exposed the pay to bankers working on takeovers. Barclays paid one former director £600,000 a month during the bank's ill-fated bid for Dutch rival ABN Amro. Naguib Kheraj received the sum, plus £14,178 a month in benefits, from May to December 2007 for a "corporate finance advisory role". The £4.9m he received was in addition to the £657,000 he was paid to the end of April while he helped his successor settle in.
Asylum Britain
A report, published by the Independent Asylum Commission which has been the most comprehensive examination of the UK's asylum system ever conducted , with testimonies from every sphere of society, including three former home secretaries, more than 100 NGOs, 90 asylum-seekers, the police, local authorities, and hundreds of citizens, has found it "marred by inhumanity" and "not yet fit for purpose". The commission found that Britain's treatment of asylum-seekers "falls seriously below the standards to be expected of a humane and civilised society". The report details how the "adversarial" system is failing applicants from the very first point of interview, with officials accused of stacking the odds against genuine claimants. "A 'culture of disbelief' persists among decision-makers," it said. "Along with lack of access to legal advice for applicants this is leading to perverse and unjust decisions." "Some of those seeking sanctuary, particularly women, children and torture survivors, have additional vulnerabilities that are not being appropriately addressed," it found.
The use of detention centres – especially to lock up children, pregnant women and torture victims – was condemned, as was the often brutal handling of removals, and the use of destitution as a tool to drive claimants out of the country.
The use of detention centres – especially to lock up children, pregnant women and torture victims – was condemned, as was the often brutal handling of removals, and the use of destitution as a tool to drive claimants out of the country.
Wednesday, March 26, 2008
GOT IT? FLAUNT IT
"In a shipyard in Germany, Blohm & Voss workers are building a mammoth yacht called the Eclipse. Like many things in the secretive world of super yachts, its exact length is hard to pin down. So is the name of its owner, and the cost of building it. But according to the Web site of The Yacht Report, one of several publications that track yachting with the same intensity that gossip magazines cover Hollywood hunks, the Eclipse is 531.5 feet long. That’s six and a half feet longer than the Dubai, an 11,600-ton behemoth that now holds the record as the world’s largest yacht. Its owner is the ruler of Dubai, Sheik Mohammed bin Rashid al-Maktoum. The extra length on the Eclipse isn’t an accident. Supersized yachts are the latest examples of one-upmanship among billionaires, many of whom already own a private jet, a Rolls-Royce or two, and multiple mansions. Despite fear of an economic recession and unrelenting job pressures among those who remain yachtless, there’s still a lot of money floating around the world. And as the superrich get richer, the size of yachts grows bigger and bigger, too. (New York Times, 16 March) RD
On the Fiddle
Capitalism is a strange type of money society . We read throughout the 1920s stock market crash, the Second World War and the oil crises of the 1970s, there was one stock which remained steady – fine violins. As global financial uncertainty strikes again, investors shy of the FTSE and put off by property may wish to consider putting their money into a Stradivarius instead.
This is the hope of the Fine Violins Fund, a syndicate set up by the renowned violin restorer and trader Florian Leonhard, which is hoping to attract investment for about 50 pre-19th century Italian violins. The project aims to loan the instruments to up-and- coming performers – old violins are worth more when they are in use, and being linked to the career of a musical star can also increase their value. The cellist Julian Lloyd Webber, the historian and philosopher Theodore Zeldin and the principal of the Royal Academy of Music, Professor Sir Curtis Price, all sit on the advisory board of the investment vehicle, the first fund investing in fine violins, with a target of €60m (£46m) in commitments. The fund has already attracted pledged investment of €25m and hopes to be running by the early summer. The violin fund can achieve a net return of from 12 to 15 per cent.
What about wine investment ?
In recent years there have been several vintage wine harvests, making it a good time for investors. The Wine Investment Fund, set up by Peter Lunzer, holds and sells for maximum returns, based on the principle that certain fine wines in limited supply increase in quick, short bursts over time.
Or perhps stamps ?
Leading dealer Stanley Gibbons offers an investment service, based on its 150 years experience of philately. Salomon Brothers rated stamps among the top four investments of the 20th century, giving an average annual return of 10 per cent. Autographs and rare coins also offer investment opportunities.
Maybe cars ?
Cars are not usually a good investment but vintage cars can make money, particularly if they are rare and have low mileage.
But , of course , in the end , the real source of wealth is always the workers labour and the surplus value they produce .
This is the hope of the Fine Violins Fund, a syndicate set up by the renowned violin restorer and trader Florian Leonhard, which is hoping to attract investment for about 50 pre-19th century Italian violins. The project aims to loan the instruments to up-and- coming performers – old violins are worth more when they are in use, and being linked to the career of a musical star can also increase their value. The cellist Julian Lloyd Webber, the historian and philosopher Theodore Zeldin and the principal of the Royal Academy of Music, Professor Sir Curtis Price, all sit on the advisory board of the investment vehicle, the first fund investing in fine violins, with a target of €60m (£46m) in commitments. The fund has already attracted pledged investment of €25m and hopes to be running by the early summer. The violin fund can achieve a net return of from 12 to 15 per cent.
What about wine investment ?
In recent years there have been several vintage wine harvests, making it a good time for investors. The Wine Investment Fund, set up by Peter Lunzer, holds and sells for maximum returns, based on the principle that certain fine wines in limited supply increase in quick, short bursts over time.
Or perhps stamps ?
Leading dealer Stanley Gibbons offers an investment service, based on its 150 years experience of philately. Salomon Brothers rated stamps among the top four investments of the 20th century, giving an average annual return of 10 per cent. Autographs and rare coins also offer investment opportunities.
Maybe cars ?
Cars are not usually a good investment but vintage cars can make money, particularly if they are rare and have low mileage.
But , of course , in the end , the real source of wealth is always the workers labour and the surplus value they produce .
A caring society ??
THE number of Scottish children in care is at its highest in two decades and youngsters are being pushed on to the streets at just 16, leaving them vulnerable to addiction, violence and homelessness a new report from Scotland's Commissioner for Children and Young People .
The report highlights the gulf between children brought up with their families – who are increasingly staying at home until well into their twenties – and those who are in care.Although Scottish Government policy dictates that children should leave at 18, six times as many are leaving at 16, often coerced by social services.The report found that children with "challenging behaviour" are those under most pressure to leave. More than one in 10 reported episodes of homelessness. Some were sent to bed-and-breakfasts - at least one youngster had to share accommodation with a convicted murderer. Senior social work sources said 16-year-olds were being squeezed out to make way for an army of needy children
Author of the report ,Ms Marshall, said: "In many cases children and young people in care are seen as a troublesome burden rather than a vulnerable person to be nurtured. At 16 - the time they need help to cope - many are all but completely abandoned with little, if any aftercare."
The report states that the level of 15- to 18-year-olds who are homeless "represents a shocking failure in corporate parenting".It claims authorities are either failing to keep under-18s within the care system, or not supporting them afterwards in accordance with the legal duty that extends to the age of 19. Although the laws and the policy in place supported the children and prioritised their interests, there was a gulf between that and practice.
Tam Baillie, the assistant director of Policy and Influencing at Barnardo's Scotland, said: "Nowadays, most young people stay at home well into their twenties, yet most looked-after young people leave care aged 16 or 17. We need to ask ourselves why our most vulnerable young people are expected to be fully independent at such a young age, often in very difficult circumstances..."
Elsewhere , we read more than a quarter of drug addicts due to receive treatment have been waiting for more than a year .
The report highlights the gulf between children brought up with their families – who are increasingly staying at home until well into their twenties – and those who are in care.Although Scottish Government policy dictates that children should leave at 18, six times as many are leaving at 16, often coerced by social services.The report found that children with "challenging behaviour" are those under most pressure to leave. More than one in 10 reported episodes of homelessness. Some were sent to bed-and-breakfasts - at least one youngster had to share accommodation with a convicted murderer. Senior social work sources said 16-year-olds were being squeezed out to make way for an army of needy children
Author of the report ,Ms Marshall, said: "In many cases children and young people in care are seen as a troublesome burden rather than a vulnerable person to be nurtured. At 16 - the time they need help to cope - many are all but completely abandoned with little, if any aftercare."
The report states that the level of 15- to 18-year-olds who are homeless "represents a shocking failure in corporate parenting".It claims authorities are either failing to keep under-18s within the care system, or not supporting them afterwards in accordance with the legal duty that extends to the age of 19. Although the laws and the policy in place supported the children and prioritised their interests, there was a gulf between that and practice.
Tam Baillie, the assistant director of Policy and Influencing at Barnardo's Scotland, said: "Nowadays, most young people stay at home well into their twenties, yet most looked-after young people leave care aged 16 or 17. We need to ask ourselves why our most vulnerable young people are expected to be fully independent at such a young age, often in very difficult circumstances..."
Elsewhere , we read more than a quarter of drug addicts due to receive treatment have been waiting for more than a year .
Tuesday, March 25, 2008
work causes cancer
Further to this earlier post that health inequalities between rich and poor have widened since Labour came to office in 1997 , American research shows that night-shift workers, and their number is growing by about 3% per year, according to the Bureau of Labor Statistics , are known to be at higher risk for accidents, sleep disorders and psychological stress due to daytime demands, such as family and other obligations, that interfere with sleeping. Now scientific evidence suggests their disrupted circadian rhythms may also cause a kind of biological revolt, raising their likelihood of obesity, cancer, reproductive health problems, mental illness and gastrointestinal disorders.
The evidence for an increased cancer risk is so compelling that, in December, the International Agency for Research on Cancer, a unit of the World Health Organization, declared that shift work is "probably carcinogenic to humans."
*Night-shift workers have a 40% to 50% increased risk of heart disease compared with day workers, various studies have found.
* People who get five hours of sleep, common among night-shift workers, are 50% more likely to be obese than normal sleepers, Columbia University researchers have found. Several dozen other studies have tied sleep loss to weight gain as well.
* Women night-shift workers have higher rates of miscarriage, pre-term birth and low birth-weight babies.
* Night-shift workers show increased rates of breast (by 50%) and colon (by 35%) cancer in numerous, independent studies. And animal studies have shown that exposure to dim light during the night-time can substantially increase tumor development.
The evidence for an increased cancer risk is so compelling that, in December, the International Agency for Research on Cancer, a unit of the World Health Organization, declared that shift work is "probably carcinogenic to humans."
*Night-shift workers have a 40% to 50% increased risk of heart disease compared with day workers, various studies have found.
* People who get five hours of sleep, common among night-shift workers, are 50% more likely to be obese than normal sleepers, Columbia University researchers have found. Several dozen other studies have tied sleep loss to weight gain as well.
* Women night-shift workers have higher rates of miscarriage, pre-term birth and low birth-weight babies.
* Night-shift workers show increased rates of breast (by 50%) and colon (by 35%) cancer in numerous, independent studies. And animal studies have shown that exposure to dim light during the night-time can substantially increase tumor development.
ANOTHER SNOUT IN THE TROUGH
"Patricia Hewitt is to join BT later this month as a non-executive director, boosting her salary by a healthy £60,000.The appointment of the former Secretary of State for both Trade and Health into one of Britain's largest private companies muddies the water between politics and business." (The Register, 13 March) RD
FOOD FOR THOUGHT
"Five years after the United States invaded Iraq, plenty of people believe that the war was waged chiefly to secure U.S. petroleum supplies and to make Iraq safe -- and lucrative -- for the U.S. oil industry. We may not know the real motivations behind the Iraq war for years, but it remains difficult to distill oil from all the possibilities. (Washington Post, 16 March) RD
GOOD NEWS FOR SOME
"The housing crisis and credit crunch may end the American dream of property ownership for millions of people, but for landlords seeking bargain investment properties the market is looking up. ...Building contractor Chad Blankenbaker seeks foreclosed homes to "flip" -- buying at well below market value, refitting then selling them at a hefty profit. "I'm shocked at how low the prices are here," he said. "There's so much inventory that no one has to fight to buy anything. "Around the country the housing crisis represents both a business opportunity for landlords and a huge shift in the rental market." (Yahoo News, 17 March) RD
The big gamblers
Despite the turmoil in the markets, bank failures and write-offs amounting to £60.5 billion City bonuses will top £6 billion this year.
Dozens of bankers at Goldman Sachs, for example, were awarded bonuses of at least £5m each at Christmas, with one lucky trader pocketing more than £10m in cash and shares. The average bonus at Goldman Sachs last year, one of the more extravagant payers, was £300,000. Staff are thought to be dreading the possibility that the average this year will be a mere £200,000 – And , of course , that is all on top of salaries and other emoluments.
Professor Stigliz said "Even if they lose their jobs, they walk away with large sums..."
Professor Stiglitz, a former chairman of the President's Council of Economic Advisers, under Bill Clinton explained ."...When things turned out well, they walked away with huge bonuses. When things turn out badly – as now – they do not share in the losses...The system was designed to encourage risk taking – but it encouraged excessive risk taking. In effect, it paid them to gamble...It is one thing to gamble with one's own money – but these bankers were gambling with other people's money – and with the government backstopping any losses. This is unconscionable."
Dozens of bankers at Goldman Sachs, for example, were awarded bonuses of at least £5m each at Christmas, with one lucky trader pocketing more than £10m in cash and shares. The average bonus at Goldman Sachs last year, one of the more extravagant payers, was £300,000. Staff are thought to be dreading the possibility that the average this year will be a mere £200,000 – And , of course , that is all on top of salaries and other emoluments.
Professor Stigliz said "Even if they lose their jobs, they walk away with large sums..."
Professor Stiglitz, a former chairman of the President's Council of Economic Advisers, under Bill Clinton explained ."...When things turned out well, they walked away with huge bonuses. When things turn out badly – as now – they do not share in the losses...The system was designed to encourage risk taking – but it encouraged excessive risk taking. In effect, it paid them to gamble...It is one thing to gamble with one's own money – but these bankers were gambling with other people's money – and with the government backstopping any losses. This is unconscionable."
Monday, March 24, 2008
NO CREDIT CRUNCH HERE
"Gulfstream Aerospace on Thursday unveiled plans to build the largest, fastest and most expensive private jet for delivery starting in 2012. Gulfstream said its new G650 will be capable of flying nearly 700 mph, faster than a Boeing 747. It will seat 18, have a full kitchen and bar, and offer individualized entertainment, satellite phone service and wireless Internet access during the flight. Passengers will be able to sip a cocktail at 51,000 feet, its maximum altitude, the company says. "The G650 is in a brand new market by itself," said Gulfstream President Joe Lombardo. At a base price of $58 million, it will cost about $10 million more than its predecessor, Gulfstream's G550. With a flying range of more than 8,000 miles, it will be capable of whisking heads of state, CEOs and other VIPs from New York to Tokyo or Buenos Aires non-stop. (USA Today, 13 March) RD
THE POOR DIE YOUNGER
"Health inequalities between rich and poor have widened since Labour came to office in 1997. A report published yesterday shows that attempts to narrow the gaps have largely failed. In infant mortality and life expectancy, two important measures, the gap is wider now than it was then. David Sinclair, head of policy at Help the Aged, said that the figures made a mockery of the Government's attempts to tackle rising inequality and represented a staggering failure. “The starkest demonstration of the gap between rich and poor can be seen in the gulf in life expectancy between different social groups. Despite the Government's commitment that no-one should be disadvantaged by where they live, the reality is that people who are poor, or who live in poor communities die earlier” he said. (Times, 14 March) RD
Sunday, March 23, 2008
MPs REDUNDANCY BENEFITS
Teresa Hunter in an article in Scotland on Sunday makes some interesting points on how the redundancy payments could be eroded for some workers,
In a previous article here in the Socialist Courier, the advantages of being an MP were, you decide what MPs need and vote it through parliament, this part of the article shows further advantages over the rest of us.
Is this money taxed?
"The first £30,000 of a redundancy payout is free from tax and National Insurance, provided it is genuinely compensation for redundancy. Above this amount, payments are added to your earnings for that year and taxed at your highest marginal rate. To qualify for £30,000 tax exemption you must be made redundant. Gardening leave, for example, is not redundancy, and neither is three months' salary in lieu of notice.PricewaterhouseCoopers' tax partner Valerie Smart said:
"The (HM Customs &] Revenue can also be very difficult about contractual payments. So, for example, if you have a contract which says you must be paid so much if the employer asks you to leave early, they view this as a contractual payment not redundancy."Even more worrying, the taxman is increasingly scrutinising redundancy payments made to people in their 50s. Smart adds: "If you are made redundant in your 50s and never work again, is that redundancy or pre-retirement? If you don't work again, they are beginning to try to argue that it is a retirement lump sum and should be taxed."The exception to this rule is MPs who enjoy a special privilege, extended in the recent Budget to members of the Greater London Council, and London mayor Ken Livingstone.If MPs lose an election or decide to leave they can apply for a resettlement grant which can pay half of their £61,000 salary if they have been in the house for less than 10 years, rising to 100% over 15 years at certain age groups. MPs enjoy the first £30,000 of their resettlement grant tax-free, even though they would not be entitled to under the rules which apply to the rest of us."
In a previous article here in the Socialist Courier, the advantages of being an MP were, you decide what MPs need and vote it through parliament, this part of the article shows further advantages over the rest of us.
Is this money taxed?
"The first £30,000 of a redundancy payout is free from tax and National Insurance, provided it is genuinely compensation for redundancy. Above this amount, payments are added to your earnings for that year and taxed at your highest marginal rate. To qualify for £30,000 tax exemption you must be made redundant. Gardening leave, for example, is not redundancy, and neither is three months' salary in lieu of notice.PricewaterhouseCoopers' tax partner Valerie Smart said:
"The (HM Customs &] Revenue can also be very difficult about contractual payments. So, for example, if you have a contract which says you must be paid so much if the employer asks you to leave early, they view this as a contractual payment not redundancy."Even more worrying, the taxman is increasingly scrutinising redundancy payments made to people in their 50s. Smart adds: "If you are made redundant in your 50s and never work again, is that redundancy or pre-retirement? If you don't work again, they are beginning to try to argue that it is a retirement lump sum and should be taxed."The exception to this rule is MPs who enjoy a special privilege, extended in the recent Budget to members of the Greater London Council, and London mayor Ken Livingstone.If MPs lose an election or decide to leave they can apply for a resettlement grant which can pay half of their £61,000 salary if they have been in the house for less than 10 years, rising to 100% over 15 years at certain age groups. MPs enjoy the first £30,000 of their resettlement grant tax-free, even though they would not be entitled to under the rules which apply to the rest of us."
Privatise Profits - Socialise Losses
BANK OF England governor Mervyn King used his now-famous meeting with the chief executives of the "big five" UK banks last Thursday to admonish them for increasing shareholder dividends.
On February 27, HBOS hiked its dividend by 18% to 48.9p meaning the bank offers a yield of 6.9%. It also lowered the targets under which directors would receive payouts on its executive incentive schemes. Previously directors only received bonuses under the scheme should the bank's shares outperform a basket of UK banks by 3%. Under the new rules, HBOS only needs to be 1.5% above rivals to trigger pay-outs.
Colin McLean, chief executive of SVM Asset Management said: "It just seems wrong that bankers are looking for support and essentially public money at a time when both dividends and executive pay are not only high but have also just been raised."
As we previously reported annual reports from RBS and HBOS show that Sir Fred Goodwin's remuneration totalled £4.19 million in 2007. Hornby's package climbed 22.5% to £1.93 million.
On February 27, HBOS hiked its dividend by 18% to 48.9p meaning the bank offers a yield of 6.9%. It also lowered the targets under which directors would receive payouts on its executive incentive schemes. Previously directors only received bonuses under the scheme should the bank's shares outperform a basket of UK banks by 3%. Under the new rules, HBOS only needs to be 1.5% above rivals to trigger pay-outs.
Colin McLean, chief executive of SVM Asset Management said: "It just seems wrong that bankers are looking for support and essentially public money at a time when both dividends and executive pay are not only high but have also just been raised."
As we previously reported annual reports from RBS and HBOS show that Sir Fred Goodwin's remuneration totalled £4.19 million in 2007. Hornby's package climbed 22.5% to £1.93 million.
Lest we forget - Hung out to Dry
The richest 10 per cent of the UK population increased their share of the nation's marketable wealth (excluding housing) from 57 per cent in 1976 to 71 per cent in 2003.
Over the same period, the speculative capital that could be deployed or invested by the bottom 50 per cent of the British population fell from 12 per cent to just 1 per cent.
The wealthiest 1 per cent of the population, on current government figures, now control more than a third of all the marketable wealth – and this ignores the vast sums held in offshore tax havens.
The New Economics Foundation has shown that global growth has not aided the poor. In the 1980s, for every $100 of world growth, the poorest 20 per cent received $2.20; by 2001, they received only 60 cents. Clearly , growth disproportionately benefits the rich and further impoverishes the poor.
Real wage increases in the top 13 countries of the Organisation for Economic Cooperation and Development have been below the rate of inflation since about 1970 – a situation compounded in Britain as the measure of inflation massively underestimates the real cost of living.
Thus wage earners – rather than asset owners – have faced a 35-year downward pressure on their standard of living. Indeed, the golden age for the salaried worker, as a share of GDP, was between 1945 and 1973 – and not this vaunted age of liberalisation.
From The Independent
Saturday, March 22, 2008
spoiled kids or a spoiled world
The media will no doubt concentrate the headlines on over-indulgent parents , the liberal minded permissive mum and dad who won't instill a sense of discipline in their kids but for those of us who seek deeper understanding other parts of the report come to our attention . The problem lay with parents who were struggling with little or no help to bring up their children in a heavily commercialised world.
The report urged the government to tackle the commercialisation of culture head-on.
Research author Maurice Galeton said: "It is particularly acute where people are living in violent neighbourhoods. ..Very young parents in violent and deprived neighbourhoods without the network of support that others get ... have a huge level of stress in their lives."
Schools indeed reflect society in general .
The report urged the government to tackle the commercialisation of culture head-on.
Research author Maurice Galeton said: "It is particularly acute where people are living in violent neighbourhoods. ..Very young parents in violent and deprived neighbourhoods without the network of support that others get ... have a huge level of stress in their lives."
Schools indeed reflect society in general .
Friday, March 21, 2008
NOT ACCORDING TO PLAN
When the US and UK forces invaded Iraq we were assured that the plan was to improve the lot of the Iraqi population, but like a lot of political promises the reality was to lead to a far different conclusion. "The humanitarian situation in post-war Iraq five years after the US-led invasion is one of the most critical in the world, the International Committee of the Red Cross said in a report late Sunday. Millions in the country had no access to drinking water, sanitation or healthcare. ...Although the situation had improved in some areas, Iraqis were either killed or wounded in daily attacks or violence with civilians often being targeted, said the report. Healthcare was far too expensive for the average citizen, it added. A recent World Health Organisation and Iraqi health ministry report estimated that 151,000 people were killed between the start of the invasion on March 20, 2003 and June 2006. Other estimates have put the number of civilian deaths as a result of the conflict between nearly 48,000 and as high as 601,000." (Yahoo News, 16 March) RD
We're all Jock Tamson's Bairns
John McCain , the Republican hopeful for the presidency , eager to glean votes whereever they can be found insisted the senator's family was descended from the Scottish king, Robert the Bruce .
"John McCain's family is of Scottish-Irish descent and related to the Scottish king, Robert the Bruce, on his mother's side".
And also "in direct descent" from Emperor Charlemagne.
Asked by the Guardian to investigate McCain's family history, genealogists and medieval historians described the link to Robert the Bruce as "wonderful fiction" and "baloney".
"What wonderful fiction," Dr Katie Stevenson, a lecturer in medieval studies at the University of St Andrews said. "Mary Louise Earle's claims to descent from Robert the Bruce are likely to be fantasy. Earle is not a Scottish name. I think it is incredibly unlikely that name would be related to Robert the Bruce. Charlemagne and Robert the Bruce were not connected - that's ludicrous."
Robert I was believed to have had up to a dozen children - several illegitimately. Basic calculations suggested there could be as many as 200 million people distantly related to him.
"In that sense McCain probably is descended from Bruce. So am I. So are you. So is everyone." Dr Bruce Durie, academic manager, genealogical studies at the University of Strathclyde said .
But you never know .
Dr Durie added that despite his romantic reputation, Robert the Bruce was "an absolute scoundrel".
"... he was a self-serving, vainglorious opportunist ..." he said.
A bit like McCain himself .
"John McCain's family is of Scottish-Irish descent and related to the Scottish king, Robert the Bruce, on his mother's side".
And also "in direct descent" from Emperor Charlemagne.
Asked by the Guardian to investigate McCain's family history, genealogists and medieval historians described the link to Robert the Bruce as "wonderful fiction" and "baloney".
"What wonderful fiction," Dr Katie Stevenson, a lecturer in medieval studies at the University of St Andrews said. "Mary Louise Earle's claims to descent from Robert the Bruce are likely to be fantasy. Earle is not a Scottish name. I think it is incredibly unlikely that name would be related to Robert the Bruce. Charlemagne and Robert the Bruce were not connected - that's ludicrous."
Robert I was believed to have had up to a dozen children - several illegitimately. Basic calculations suggested there could be as many as 200 million people distantly related to him.
"In that sense McCain probably is descended from Bruce. So am I. So are you. So is everyone." Dr Bruce Durie, academic manager, genealogical studies at the University of Strathclyde said .
But you never know .
Dr Durie added that despite his romantic reputation, Robert the Bruce was "an absolute scoundrel".
"... he was a self-serving, vainglorious opportunist ..." he said.
A bit like McCain himself .
A fine performance - a rich reward
Tim Bowdler, chief executive of Johnston Press, saw his emoluments surge 36%, to more than £1m, last year despite a fall in profits as the local newspaper group grappled with the changes affecting the industry. The annual report for Edinburgh-headquartered Johnston Press shows Bowdler was the biggest winner in an increase in boardroom pay in 2007, when his earnings jumped from £800,000 to £1,088,000.The rise was largely due to a dramatic increase in the amounts that Bowdler received under performance-related bonuses, from £236,000 to £516,000. Bowdler's base salary rose by 3% to £556,000. Bowdler was also awarded 125,200 shares under a performance share scheme .He is in line to receive 242,911 shares under the PSP if the conditions are met. At yesterday's closing price of 128.5p these would be worth £312,140.
Performance related bonus ? A fall in profits ? Johnston Press reported a 6.3% decline in pre-tax profits .
Performance related bonus ? A fall in profits ? Johnston Press reported a 6.3% decline in pre-tax profits .
Thursday, March 20, 2008
The Socialist Party
Annual ConferenceSocialist Party Head Office, 52 Clapham High St, London SW4 (nearest tube:Clapham North).
Friday 21 March 10:30–17:30. Saturday 22 March 11:00–16:30.
1904 - 2008 Over a century of socialist activity.
About us - Our Principles
What is Socialism ? - F.A.Q. - What is Capitalism?
Friday 21 March 10:30–17:30. Saturday 22 March 11:00–16:30.
1904 - 2008 Over a century of socialist activity.
About us - Our Principles
What is Socialism ? - F.A.Q. - What is Capitalism?
website: http://www.worldsocialism.org/spgb/index.html
journal: socialist standard
website: http://www.worldsocialism.org/spgb/standardonline/
Visitors welcome at all Socialist Party meetings.
No Silver Lining
Does every cloud have a silver lining ? Will falling house prices help those to get the first time buyers on the rung of the property ladder ? Apparently not .
Homeowners and those hoping to step onto the property ladder have both been dealt a blow after a senior Bank of England policymaker warned that house prices will fall but the impact of the credit crunch means affordability won't improve.
The global economic environment has become tougher, forcing lenders to become more cautious about extending mortgages to borrowers . First-time buyers in particular are being forced to accumulate bigger desposits, making it more difficult for them to benefit from a long-anticipated drop in house prices.
"We may see prices fall this year, but because of credit conditions, affordability will probably not improve at all," Miss Barker said. She added: "Finding deposits has become more difficult because of the credit crunch..."
British banks have raised the cost of borrowing for homebuyers with the smallest deposits to a seven-year high and have declined to pass on two Bank of England interest rate cuts. Central bank figures show that the average rate offered by lenders on loans for 95 per cent of the price of a property, fixed for two years, is 6.55 per cent - the highest since September 2000. In January, mortgage approvals were close to the lowest in nine years.
The UK housing market has slumped to the worst since the eve of the nation's last recession in 1990, a survey by the Royal Institute of Chartered Surveyors showed last month.
Too few homes are being built to meet Britain's housing needs, and that the number of new houses built would probably fall this year.
Homeowners and those hoping to step onto the property ladder have both been dealt a blow after a senior Bank of England policymaker warned that house prices will fall but the impact of the credit crunch means affordability won't improve.
The global economic environment has become tougher, forcing lenders to become more cautious about extending mortgages to borrowers . First-time buyers in particular are being forced to accumulate bigger desposits, making it more difficult for them to benefit from a long-anticipated drop in house prices.
"We may see prices fall this year, but because of credit conditions, affordability will probably not improve at all," Miss Barker said. She added: "Finding deposits has become more difficult because of the credit crunch..."
British banks have raised the cost of borrowing for homebuyers with the smallest deposits to a seven-year high and have declined to pass on two Bank of England interest rate cuts. Central bank figures show that the average rate offered by lenders on loans for 95 per cent of the price of a property, fixed for two years, is 6.55 per cent - the highest since September 2000. In January, mortgage approvals were close to the lowest in nine years.
The UK housing market has slumped to the worst since the eve of the nation's last recession in 1990, a survey by the Royal Institute of Chartered Surveyors showed last month.
Too few homes are being built to meet Britain's housing needs, and that the number of new houses built would probably fall this year.
A DESPAIRING WORLD
“While many of the poor are making progress, many of the very poorest are stuck at the bottom. Nearly 10 million children die each year because their families, communities and nations are too poor to sustain them. The instability of impoverished and water-stressed countries has ignited a swath of violence across the Horn of Africa, the Middle East and Central Asia. What we call violent fundamentalism should be seen for what it really is: poverty, hunger, water scarcity and despair. "(Time, 19 March) RD
OUTDATED MARXISM?
"A study of the effect of religion on quality of life claims that religious people are happier the more often they go to church and pray. The research, presented to the Royal Economic Society, gathered data from thousands across Europe including the UK and found that religious people have better “life satisfaction” than their non-religious counterparts." (Times, 18 March) Religion is the opium of the people. It is the heart of a heartless world. The cry of the oppressed creature." (Karl Marx, 1844) RD
Wednesday, March 19, 2008
THIS IS PROGRESS?
"There have been virtual fences, real fences, increased patrols and night-vision cameras. Now the latest initiative by the US to seal its increasingly porous border with Mexico harks back to one of the oldest approaches: dig a moat. City officials in Yuma, in south-western Arizona, have come up with a scheme to create a "security channel" along the nearby border by reviving a derelict two-mile stretch of the Colorado river. "The moats that I've seen circled the castle and allowed you to protect yourself, and that's kind of what we're looking at here," Yuma county sheriff Ralph Ogden told the Associated Press. (Guardian, 14 March) RD
A BRIGHT FUTURE?
No so long ago the capitalist media was full of futurologists predicting the four hour day, the three day week and retirement at fifty years of age. The big problem of the future would be leisure. How wrong all that nonsense was is shown by what is happening in the most advanced capitalist nation on earth. "A third of Americans 50 and over are not confident they will have enough money to retire, and more than two-thirds expect to keep working well into old age, according to a survey published Wednesday. The report, commissioned by retirement services firm SecurePath by Transamerica, suggests the surge in companies offering defined-contribution 401(k) plans has not displaced Social Security as the ultimate safety net for retirees." (Yahoo News, 12 March) RD
REFORMISM FAILS AGAIN (2)
"Despite a pledge to cut the health gap between the richest and poorest, the difference in life expectancy is widening, a government report shows. The aim is to reduce the differences in male and female life expectancy by 10% by 2010. But the report shows the gap between those in the most deprived areas of England and the rest of the country is getting worse. ...Professor Danny Dorling, an expert in human geography at Sheffield University, said the inequalities were now at "unprecedented levels". "This is the first Labour or Liberal government to see this gap widen."...David Sinclair, head of policy at Help the Aged said poverty was a "central consideration". He added: "It remains the case that those who are wealthier can afford to stay active and healthy, those in poverty cannot."
(BBC News, 13 March) RD
(BBC News, 13 March) RD
Debt for the workers
The [so-called] middle classes have become the latest victims of the spiralling debt crisis because of “super-inflationary” rises in the cost of living, a leading debt group said yesterday.
The Consumer Credit Counselling Service said that while steep rises in energy and mortgage costs had hit the oldest and poorest hardest, the increases had been so dramatic that even the professional classes were struggling. Experts said that the figures marked a more serious era in the country’s battle with debt because they showed that the problem had extended from borrowers with credit cards and personal loans to all households, irrespective of how much they had borrowed or what they earned.
Rises in mortgage costs have had a disproportionate impact on higherincome earners because they spend more of their disposable incomes on property, the counselling service said. It found that this group now spends 44 per cent of their net salary on their rent or mortgage, up from 34 per cent five years ago; households below the poverty line spend 8 per cent.
The figures came after Citizens Advice Bureaux reported a 35 per cent increase in inquiries from homeowners worried about paying the mortgage.
Experian, the credit reference agency, published a debt map of Britain yesterday, giving a breakdown of how much towns and cities owe. Residents of Chester-le-Street have borrowed the most on credit cards and loans, with an average amount outstanding of £5,248. Borrowers in Northern Ireland owe the least, with an average of £2,291. Experian said that mortgage balances had grown the most in areas that had experienced the highest house price growth in the past 12 months, such as Northern Ireland, Kensington & Chelsea and Wandsworth.
The average fuel bill has reached more than £1,000 a year after recent price rises by energy companies, while the average home loan went up by almost £9,000 between 2006 and 2007, from £118,536 to £127,039, the Council of Mortgage Lenders said.
Credit Action, another debt charity, said that second-home owners and older people who had taken out equity from their homes to help to fund their retirement were at particularly high risk from rising living costs, because of their exposure to the downturn in the property market as well as more expensive mortgage rates on these deals.
The counselling service said that the profile of those asking for help was becoming “older and poorer”. For the first time it found that customers over the age of 60 had the highest level of debt, at £29,642. The inflation rate for people over 75 is now 3.4 per cent, compared with an official inflation rate of 2.5 per cent, according to Alliance Trust, the investment group.
Other research showed that an increasing number of desperate homeowners are resorting to dangerous measures to get out of debt. In the past three years 6.5 million mortgage borrowers have lumped separate credit card and personal loan debts into one, according to Moneyexpert.com
The director of Credit Action, said: “This is a new era for the UK’s debt crisis. Previously, debt problems were confined to people with credit cards and loans. Now, everyone is struggling with essentials, such as utility bills and mortgages.”
The Consumer Credit Counselling Service said that while steep rises in energy and mortgage costs had hit the oldest and poorest hardest, the increases had been so dramatic that even the professional classes were struggling. Experts said that the figures marked a more serious era in the country’s battle with debt because they showed that the problem had extended from borrowers with credit cards and personal loans to all households, irrespective of how much they had borrowed or what they earned.
Rises in mortgage costs have had a disproportionate impact on higherincome earners because they spend more of their disposable incomes on property, the counselling service said. It found that this group now spends 44 per cent of their net salary on their rent or mortgage, up from 34 per cent five years ago; households below the poverty line spend 8 per cent.
The figures came after Citizens Advice Bureaux reported a 35 per cent increase in inquiries from homeowners worried about paying the mortgage.
Experian, the credit reference agency, published a debt map of Britain yesterday, giving a breakdown of how much towns and cities owe. Residents of Chester-le-Street have borrowed the most on credit cards and loans, with an average amount outstanding of £5,248. Borrowers in Northern Ireland owe the least, with an average of £2,291. Experian said that mortgage balances had grown the most in areas that had experienced the highest house price growth in the past 12 months, such as Northern Ireland, Kensington & Chelsea and Wandsworth.
The average fuel bill has reached more than £1,000 a year after recent price rises by energy companies, while the average home loan went up by almost £9,000 between 2006 and 2007, from £118,536 to £127,039, the Council of Mortgage Lenders said.
Credit Action, another debt charity, said that second-home owners and older people who had taken out equity from their homes to help to fund their retirement were at particularly high risk from rising living costs, because of their exposure to the downturn in the property market as well as more expensive mortgage rates on these deals.
The counselling service said that the profile of those asking for help was becoming “older and poorer”. For the first time it found that customers over the age of 60 had the highest level of debt, at £29,642. The inflation rate for people over 75 is now 3.4 per cent, compared with an official inflation rate of 2.5 per cent, according to Alliance Trust, the investment group.
Other research showed that an increasing number of desperate homeowners are resorting to dangerous measures to get out of debt. In the past three years 6.5 million mortgage borrowers have lumped separate credit card and personal loan debts into one, according to Moneyexpert.com
The director of Credit Action, said: “This is a new era for the UK’s debt crisis. Previously, debt problems were confined to people with credit cards and loans. Now, everyone is struggling with essentials, such as utility bills and mortgages.”
Bankers still rake it in
Fred Goodwin regained his place as the highest-paid executive at Royal Bank of Scotland last year after taking home £4.2 million. Goodwin's pay package was up 5% from 2006 with a basic salary of £1.3m and a performance bonus of £2.9m. He also earned extra pension rights worth £772,000 in the course of the year and netted a paper profit of £1.2m after exercising cut-price options on nearly 500,000 shares under a performance scheme. Goodwin's pay package made him the best-paid of Royal Bank's executives. It could have been higher but he missed out on 286,579 shares that could have been awarded under a medium-term performance plan from 2005 as the company failed to meet targets.
Mike Fisher, who has gone to manage Royal Bank's portion of the ABN Amro business took home £2.4m in pay and bonuses, up 24% on 2006. Finance director Guy Whittaker who benefited last year from major pay-outs to compensate him for his move from Citigroup in 2006. In 2007, he received £3.35m in pay. Larry Fish, who ran the bank's US subsidiary Citizens Financial, also fell back in the pay stakes. He netted £6.6m in 2006 but in 20007 had to make do with around £2m in pay and bonuses.
In these times of financial troubles and credit crunch , isn't it good to see how those bankers are suffering hardship and sharing the woes with all us who are facing increased debt and higher bills .
For a socialist analysis of the present American capitialist crisis see Bubble Trouble
Mike Fisher, who has gone to manage Royal Bank's portion of the ABN Amro business took home £2.4m in pay and bonuses, up 24% on 2006. Finance director Guy Whittaker who benefited last year from major pay-outs to compensate him for his move from Citigroup in 2006. In 2007, he received £3.35m in pay. Larry Fish, who ran the bank's US subsidiary Citizens Financial, also fell back in the pay stakes. He netted £6.6m in 2006 but in 20007 had to make do with around £2m in pay and bonuses.
In these times of financial troubles and credit crunch , isn't it good to see how those bankers are suffering hardship and sharing the woes with all us who are facing increased debt and higher bills .
For a socialist analysis of the present American capitialist crisis see Bubble Trouble
Tuesday, March 18, 2008
Glasgow - Edinburgh Day School
Glasgow - Edinburgh Day School CAPITALISM IN THE 21st CENTURY Why Capitalism Can't Go Green. Paul Bennet Another Century of Wars? Gwynn Thomas The Tyrany of Copyright. Tristan Miller
304 Maryhill Road, Glasgow. | |||||
---------------------------------------------------------- Each speaker will speak for up to 30 minutes, the rest of the session will be taken up by questions and discussions. ------------------------------------------  Why Capitalism can't go green. 1.00 till 2.15 pm Capitalism is simply unable to run on green lines, as its motive force is expansion and domination, with no thought for the consequences for the people or the environment. In this talk Paul Bennett, Manchester Branch,will argue that capitalism is unable to cope with the ecological challenges that lie ahead, from global warming,to depletion of resources.Some writing on this subject Pepper Standard Bennet Eco-Socialism  Another Century of War 3.45 till 5.00 pm The new century opened with the promise of a "peace dividend".Tensions between the Super-powers had relaxed and the risk of interstate war seemed to have receeded only to be replaced by an increasing number of wars within states.Wars in which 90% of the casualties are civilians and 80% of those are women and children. Of the 50 major conflicts fought during the 1990's small arms were the weapons of choice in 46 of them.. Gwynn Thomas, South London Branch, will argue that these are wars on the cheap Some writing on war Orwell Thomas BBC | |||||
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Monday, March 17, 2008
MORE WORDS OF WISDOM
"The last French veteran of World War I, an Italian immigrant who lied about his age to join the Foreign Legion and fight in the trenches, died Wednesday aged 110, President Nicolas Sarkozy said. Lazare Ponticelli, the last of more than eight million men who fought under French colours in the 1914-18 war that tore Europe apart, died at the home he shared with his daughter in Kremlin-Bicetre, a Paris suburb. Reflecting on his wartime experiences, he once said: "You shoot at men who are fathers: war is completely stupid." (Yahoo News, 12 March) RD
CARING CAPITALISM
From San Diego comes news about how capitalism treats the homeless. In 2006, the Regional Task Force on Homeless estimated the homeless population at 9,600 countywide, which included 4,400 people within the city of San Diego "Esther Viti, who oversees the donation of public benches for a merchants' association in La Jolla, sent an e-mail to 45 other activists last week asking them to sit in three-hour shifts, no bathroom breaks allowed. "After all, you MUST OCCUPY THAT BENCH continually for three hours to prevent that homeless person from sitting on that bench," the e-mail said. Donors weren't happy that transients were sleeping on benches they had provided for the public, Viti said. The group previously tried installing benches with metal dividers that split the seats. Transients simply began sleeping upright, said Deborah Marengo, president of Promote La Jolla." (Yahoo News, 10 March) RD
Saturday, March 15, 2008
Friday, March 14, 2008
ANOTHER RAY OF HOPE
Socialists are often told that socialism is impossible because human beings are innately war-like and aggressive, but this report seems to suggest otherwise.
"More and more Israelis are avoiding mandatory military service— something long viewed in this country as a proud rite of passage. "In the past, it is true that not serving in the military was considered the exception," said Dr. Rueven Gal , author of "A Portrait of the Israeli Soldier" and former chief psychologist for the Israeli military. "In more recent years it became more tolerable and more acceptable to people." In 1997, according to army statistics, less than one in 10 Israeli men avoided their mandatory three-year military service. These days, it's closer to three in 10. Women, too, are opting out at a faster pace: Over the last decade, the number of women avoiding military duty rose from 37 percent to 44 percent." (Yahoo News, 2 March) RD
"More and more Israelis are avoiding mandatory military service— something long viewed in this country as a proud rite of passage. "In the past, it is true that not serving in the military was considered the exception," said Dr. Rueven Gal , author of "A Portrait of the Israeli Soldier" and former chief psychologist for the Israeli military. "In more recent years it became more tolerable and more acceptable to people." In 1997, according to army statistics, less than one in 10 Israeli men avoided their mandatory three-year military service. These days, it's closer to three in 10. Women, too, are opting out at a faster pace: Over the last decade, the number of women avoiding military duty rose from 37 percent to 44 percent." (Yahoo News, 2 March) RD
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Paternalism is a common attitude among well-meaning social reformers. Stemming from the root pater, or father, paternalism implies a patria...
