GETTING USED TO POVERTY

"Four out of five young people aged between 18 to 24 years old are struggling with debt. Half of those owe more than £2,000, one in five owes more than £10,000 and three in ten owe over £20,000. Student fees and loans account for less than half of the debts, according to the research by YouGov to be published next month by Rainer, the youth charity. The rest was generated by spending on store cards, credit cards and overdrafts generated by socialising, shopping and 'personal luxuries'." (Observer, 7 October)
Capitalism is a wonderful system it is getting young workers used to the poverty treadmill of work and debt that will be their unenviable future. RD

WATER SWIZZ

In 2004 Coca-Cola's Dansini water "filtered for purity" by using "reverse osmosis" turned out to be tap water marked up from 0.03p to 95p per 500ml. In July, Pepsi was forced to change labels on bottles of Aguafine and admit that it "originated from a public water source" - the tap. A gullible public is still being conned though.
"Boots confirmed yesterday that it is selling water at £3.99 for little more than a cupful. Its Expert Sensitive Refreshing Facial Spritz is exactly what it says on the can: water." (Times, 6 October)
In its constant drive for profit the capitalist class are prepared to engage in all sorts of skulduggery, but Boots selling tap water at £32.92 a litre takes some beating. RD

NOT SO PATRIOTIC

At the Labour and Conservative Party conferences the drum was banged for patriotism. "British jobs for British people", "this great country of ours", "our proud British heritage", and so on ad nauseum. In fact the British capitalists don't care where they make their profits, if they can exploit workers abroad more profitably then that is what they will do, despite the cant spoken at political conferences.
"Unite, the manufacturing trade union, yesterday accused Cadbury Schweppes of behaving like an "asset-stripping private equity firm" following the company's announcement that it would shed 700 jobs by outsourcing chocolate production to Poland. Cadbury said it planned to shut its factory in Keynsham, near Bristol, by 2010, with the loss of 500 jobs, while 200 further posts would go in Bournville, in the Midlands, at the plant where it has been producing chocolate for almost 130 years. Much of the work done at the Keynsham and Bournville plants will be switched to the Polish company Wedel, which it acquired in 1998, Cadbury said, because labour and manufacturing costs would be much lower". (Independent, 4 October) RD

NOT SO SWEET CHARITY

Capitalism taints everything it touches even charity. "Indeed, the sector is very much a target for unscrupulous operators, whether they are diverting donations for relief missions for their own use or are sham clothes collectors depriving established charities and their shops of donated garments. ...Increasingly, charities use street collectors to encourage the public to donate regularly by direct debit. ..."There is an awful lot of personal information being given out," Dearman (PKF Accountants) says. There is a risk that fraudsters might impersonate street collectors and complete their own donor lists, complete with financial details, he cautioned." (Times, 2 October)
Capitalism certainly is a wonderful system; workers hoping to assist others are being ripped off. RD

NEVER STEAL ANYTHING - SMALL

Workers are taught in school and church that honesty is the best policy, but this is capitalism and capitalism just does not work that way.
"Depending on who you talk to, fraud costs the economy £14 billion a year (according to the Association of Police Officers) or £72 billion (the Association of Certified Fraud Examiners)" (Times, 2 October)
This is not workers dodging fares on the train this is a big business operation, it involves VAT evasion and what is called "carousel fraud". The Revenue and Customs have added an extra 700 staff bringing the total to 1,500 to deal with this fraud.
What a wasteful society capitalism is. Thousands of workers, crooks and cops in a ceaseless unproductive treadmill. RD

WE HOPE IT IS TRUE

It is sad, but true that it is almost impossible to lift up a newspaper without being informed about bad news. War, poverty and world hunger - it is the media's daily ration of social problems. How welcome to read of this ray of sunshine in an otherwise gloomy press.
"Outrage in cyberspace as the US Navy describes the MySpace generation as "alien life forces". They spend their lives in front of screens meeting foreigners and are therefore less willing to sign up and kill them, a Navy study reports." (Times, 2 October) RD

DIAL O FOR ORWELL

"A massive extension of surveillance powers comes into force today, giving police, government officials and even local councils unprecedented access to everyone's telephone records. The new regulations will force telecommunications companies to retain information about all landline and mobile calls made by members of the public for one year, and hand over the data to over 650 public bodies and quangos. The move, quietly approved by Parliament in July under the Regulation of Investigatory Powers Act 2000, is being justified as a vital tool in the fight against terrorism." (Daily Telegraph, 1 October)
In George Orwell's dystopia 1964 the frightening slogan was Big Brother is Watching You. A more up-to-date slogan would be Big Brother is Listening to You. RD

NOW THAT'S LIVING

"The bonanza in boardroom pay has become even more spectacular, according to the latest figures from the accountancy firm KPMG. The typical chief executive of a FTSE 100 company has seen their total remuneration rise by 12 per cent in the past year, to reach over £2.6m. That's four times the rate of increase in average earnings, leaving the business elite on pay over100 times what most of their employees earn. In the case of those chief executives still in post, their income went up by 16 per cent, accelerating last year's 9 per cent rise. The chief executive of one of the smaller FTSE 250 companies would expect to see a total package of just over £1m, up from £878,000 in 2006. Britain's top corporate earner is probably still Bob Diamond of Barclays Capital, who took home £22.9m last year, including a performance-related bonus of £10.4m." (Independent, 1 October) RD

A LIVING WAGE?

"The adult rate for the statutory minimum wage will go up from £5.35 to £5.52 and from £4.44 to £4.60 for 18-21-year-olds. The rate for 16 and 17-year-olds will increase from £3.30 to £3.40 an hour. Meanwhile, annual leave entitlement will increase from 20 to 24 days a year for full-time workers and will increase again to 28 days from April 2009. Employment Relations Minister, Pat McFadden, said: "These changes will improve the lives of millions of British workers, giving them more time with their families and ensuring our lowest paid workers continue to be able to earn a living wage." (Guardian, 1 October)
McFaddens "living wage" must seem laughable to politicians and big earners in the City. 17p an hour increases? Let the good times roll! RD

WHO IS AFRAID OF WHO?

"For the second time in seven years the Vatican is hosting a scientific conference for astronomers. More than 200 scientists from 26 countries including the United States, Britain, Italy, Germany, Russia, and Japan have gathered in Rome for a five-day meeting on disc galaxies. ...Why does the Vatican fund astronomical research after centuries of public dispute over the relative roles of science and religion? Jesuit Brother Guy Consolmagno, a member of Father Funes's team and curator of one of the world's most important collections of meteorites, kept at Castelgandolfo (the Pope's summer residence), explains.
"They want the world to know that the Church isn't afraid of science," he said." (BBC News, 1 October)
In the 17th century it was this church that was persecuting and executing scientists. Galileo was tried for heresy by the Inquisition because his findings contradicted the scriptures. It was not until the reign of Pope John Paul II - nearly four centuries later - that the Catholic Church finally admitted that Galileo had been right and he was officially rehabilitated. RD

ILLUSION AND REALITY

Capitalism is a society that thrives on illusions. One of the cruellest is the one about elderly workers sitting in rocking chair contentment after a lifetime of toil. For many workers the reality behind this idyllic picture turns out to be this.
"The proportion of pensioners going bankrupt has more than doubled in five years, research has suggested. Of bankruptcies in England and Wales during 2007, 7% involved retired people - up from 3% in 2002, a report said. This meant 7,900 pensioners were declared bankrupt over the past year, compared to 900 five years previously. Accountants firm Wilkins Kennedy, which produced the study, said older people unused to being offered credit "may take on unmanageable levels of debt". The researchers warned that the figures are likely to get even higher, as increased life expectancy and rises in the price of food and fuel put a greater strain on the limited savings of many pensioners." (BBC News, 1 October) RD

PHONEY COMMUNISTS

"The Chinese authorities are in the midst of an unusually harsh crackdown on the Internet, closing tens of thousands of websites that had allowed visitors to post their opinions, according to bloggers and Internet monitors in China. The new censorship wave appears linked to next month's 17th Communist Party Congress, a key political gathering that will set China's course for the coming five years. Party leaders generally prefer to meet undisturbed by criticism." (Yahoo News, 25 September)
This phoney Communist Party of course run a system of state capitalism not communism. Early socialists like Marx and Engels who wrote the Communist Manifesto were themselves the victim of censorship and deportation and were completely opposed to the concept of censorship. In their day it was the avowedly capitalist parties that practiced censorship but today dicatorships in China and Cuba who falsely describe themselves as communists are the ones who most rigidly suppress all opposition. RD

BE AFRAID, VERY AFRAID (2)

"Former national security adviser Zbigniew Brzezinski likened U.S. officials' sabre rattling about Iran's alleged nuclear ambitions to similar statements made before the start of the Iraq war.
"I think the administration, the president and the vice president particularly, are trying to hype the atmosphere, and that is reminiscent of what preceded the war in Iraq," Brzezinski told CNN's "Late Edition" on Sunday." (CNN Politics.com, 24 September)
We don't want to be like Charles Dickens's Fat Boy and "make your flesh creep", but this guy is supposed to be an expert in such matters. Let us hope he is like a lot of capitalism's experts and has got it all wrong. Capitalism makes our flesh creep. RD

WAR IS HELL - FOR SOME

"The Bush administration plans to increase its 2008 financing request for military operations in Iraq, Afghanistan and elsewhere by almost $50 billion, with about a quarter of the additional money going toward armoured trucks built to withstand roadside bombs, Pentagon officials said Saturday. The increase would bring the amount the administration is seeking to finance the war effort through 2008 to almost $200 billion." (New York Times, 23 September)
This increase in expenditure is bad news for the American capitalist class who will have to pay for this. On the other hand it is good news for that section who have their capital tied up in the manufacture of this additional material. RD

MAKING A KILLING

"Habana Health Care Centre, a 150-bed nursing home in Tampa, Fla., was struggling when a group of large private investment firms purchased it and 48 other nursing homes in 2002. The facility’s managers quickly cut costs. Within months, the number of clinical register nurses at the home was half what it had been a year earlier, records collected by the Centres for Medicare and Medicaid Services indicate. Budgets for nursing supplies, resident activities and other services also fell, according to Florida’s Agency for Health Care Administration. The investors and operators were soon earning millions of dollars a year from their 49 homes. Residents fared less well. Over three years, 15 at Habana died from what their families contend was negligent care in lawsuits filed in state court." (New York Times, 23 September)
When it comes to making a profit there is no depth to which capitalism won’t descend. RD

EXPLOITATION IN BANGLADESH

If you have ever wondered how some clothing stores manage to have such low prices, wonder no more. "At least 25,000 textile workers defied a ban on protests in emergency-ruled Bangladesh on Saturday to demand back-pay and bonuses in one of the country's biggest industrial zones, police said. The workers walked off the job in the Tejgaon Industrial Area in Dhaka and held protests in the streets, forcing the shutdown of most factories in the area, assistant police commissioner Moshiur Rahman said. Police used batons to break up protests after demonstrators smashed the windows of several factories. ...The military-backed government has banned all kinds of protests and rallies and has said it will not tolerate any unrest in the important textile sector, which is crucial to impoverished Bangladesh's export earnings. ...Garments are Bangladesh's biggest export earners with sales abroad fetching more than nine billion dollars, or three-quarters of the country's total export earnings, in the last fiscal year." (Yahoo News, 22 September)
Behind the strikes and demonstrations is the government's refusal to introduce the agreed minimum wage of $25 a month RD

The Standard October 2007

The Standard Online

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Npower - no help to the poor

Npower, whose German parent company RWE reported profits of £1.68 billion last year on the back of rising energy prices, was singled out in a report by the Fuel Poverty Advisory Group. Scottish Power, which made £483 million last year, was also rated poorly for doing least to help its most vulnerable customers.

Households are deemed to be living in fuel poverty if they spend more than 10% of their income on heating and lighting bills. The industry regulator Ofgem estimates that there are now 4 million households living in fuel poverty in the UK.
Currently, each power company can set the level of help it chooses to offer those customers, such as through lower prices or subsidies for loft insulation.

In August, Ofgem , the industry regulator , examined what each company was doing to help its poorest customers. Its findings were then analysed by the fuel poverty group . The report said npower "clearly stands out as the company that does the least for its vulnerable customers". It also criticised the company for having the highest prepayment electricity tariffs . The original Ofgem report found that npower had fewer than 1,200 of its total 6.8 million customers on its First Step social tariff - less than 0.02%. In comparison British Gas had 300,000, or 2%, of customers receiving financial help. EDF offers help to about 60,000 customers, or 1%.

The Bankrupt System

Research based on a study of 1,250 bankrupts in England and Wales found the proportion of pensioners going bankrupt has more than doubled in five years . Of bankruptcies in England and Wales during 2007, 7% involved retired people - up from 3% in 2002 . This meant 7,900 pensioners were declared bankrupt over the past year, compared to 900 five years previously.

Researchers warned that the figures are likely to get even higher, as increased life expectancy and rises in the price of food and fuel put a greater strain on the limited savings of many pensioners.

Keith Stevens, insolvency partner at Wilkins Kennedy, said: "More and more pensioners are going bankrupt as they struggle to repay debts when their pension is their sole source of income. "

Senior citizens could be missing out on money to which they are entitled because of the complexity of the government's pension credits system

Older people unused to being offered credit "may take on unmanageable levels of debt".

The problem might be worst in rural areas. That could be because of pensioners not being able to rely on free public transport, and fewer opportunities for part time work.

More Pay For the Bosses

We previously reported how directors pay increases are much higher than their workers wage rises and today's Herald produces new figures that once again confirms that the rich always reward themselves more than those that produce the wealth .

Chief executives enjoyed an average 16% rise in total remuneration in 2007 - a marked acceleration over the prior year's 9% increase - according to accounting giant KPMG's .Moreover, other executive directors on company boards saw their base salaries increase at a similar rate, although finance directors are seeing bigger increases in pay. KPMG noted that the rate of increase in directors' pay is far higher than the national average .

The median total remuneration for FTSE-100 chief executives in 2007 - including new hires as well as promotions - increased to £2.6 million, compared with £2.3 million last year.

Whereas today's Independent is reporting of the story is that The bonanza in boardroom pay has become even more spectacular, according to the latest figures from the accountancy firm KPMG. The typical chief executiveof a FTSE 100 company has seen their total remuneration rise by 12 per cent in the past year, to reach over £2.6m. That's four times the rate of increase in average earnings, leaving the business elite on pay over 100 times what most of their employees earn.

Britain's top corporate earner is probably still Bob Diamond of Barclays Capital, who took home £22.9 million last year, including a performance-related bonus of £10.4 million.

Bart Becht, chief executive of Reckitt Benckiser, the man behind Mr Sheen, on £22 million; Giles Thorley, head of Punch Taverns, making ends meet on £11 million; . Mr Thorley's package is equivalent to 1,147 of his staff's pay.

Taken together, the directors of FTSE 100 companies collectively earned £515 million lastyear – exceeding the GDP of the likes of Eritrea and the Seychelles.