The Gravy Train

The highest-earning 300 bosses in the public sector saw their salaries increase by 12.8 per cent last year, raising their average to £237,564. Seventeen of the top bosses earned more than £500,000, according to the Taxpayer's Alliance second annual Public Sector Rich List.

The pay rises, more than three times the national average . The top 10 earn an average salary of £799,000 – more than 40 times the basic pay of a nurse or soldier.

Top of the league is Adam Crozier, chief executive of the Royal Mail. The only person on the list with a seven-figure salary. Strike-breaker Crozier has presided over the cancellation of the second mail delivery and an increase in the price of stamps. He saw his pay package swell by 21 per cent last year, taking his salary to £1,256,000. The report shows that it equates to earning £1,000 every 1 hour and 27 minutes and he had the gall and audacity to say that the ordinary postal worker was over-paid

PROMISES AND REALITY

Mrs Thatcher promised us a "property owning democracy", Mr Blair promised a new deal for the "socially excluded". Despite all the promises from all the different political leaders the end result is poverty and insecurity for the working class. "UK homeowners are already reeling from five interest rate rises since the summer of 2006, with many facing the threat of repossession in 2008. Borrowers coming off low fixed-rate mortgages now face an immediate increase costing hundreds of pounds a month. Repossessions are set to rise by 50 per cent next year, according to the Council of Mortgage Lenders. Thousands of borrowers have already been forced to paying their mortgages on their credit cards to avoid arrears, according to a recent report by Shelter, the housing charity." (Times, 6 November) RD

NO SEX PLEASE, WE'RE AMERICAN

The antics of the far-right religious fundamentalists in the USA never fail to amaze us. These groups are really upset with the Pentagon. Not about US troops in Iraq and Afghanistan, but something much more important than that. "A Pentagon decision to allow the sale of Playboy and Penthouse magazines on military bases has appalled US religious groups, which insist it is illegal. ...Pat Trueman, the head of the Alliance Defence Fund, said that he along with other family values groups was overseeing an e-mail campaign to two million Americans asking them to lobby their congressmen against the Pentagon decision." (Times, 6 November) RD

Off with their CAPs

Oh , the poor rich aristocrats are being picked upon again as they begin to lose their European Union farming subsidies .

The proposal, being drawn up by the European Commission, is the first attempt in years to tackle the scandal of giant agri-businesses and millionaire barley barons – as opposed to smallholders and family farmers – being the chief beneficiaries of the Common Agricultural Policy. The plans, due to be submitted for consultation with EU member states on 20 November, will suggest that some of the largest payments to super-rich landowners and industrial farms could be reduced by as much as 45 per cent. Although the British Government officially supports reforms to CAP it is particularly wary of any proposals that target large holdings because the vast majority of farm subsidies in the UK go to big businesses and wealthy landowners. Analysts also warned that the Commission's proposals could be significantly watered down by the time member states actually come to vote on the issue some time next year and that Britain and Germany were most likely to be the main countries behind any such move.

"It's a start ..." said Claire Godfrey, Oxfam's EU policy adviser. "But what it still doesn't do is actually address the inequalities in the distribution of subsidies."

The Queen
£544,000 slashed to £299,000
One of the richest women in the world and a landowner whose farms bring in more than £0.5m a year in subsidies. The Queen's Sandringham estatein Norfolk nets her £404,000 a year in subsidies; Windsor Castle brings in a further £140,000.

Prince Charles
£225,000 slashed to £121,000
The heir to the throne received approximately £168,000 in subsidies for his organic Home Farm at Highgrove in Gloucester between 2003 and 2004, while farms in the Duchy of Cornwall – the 141,000-acre estate which provides most of the Prince's income – brought in more than £135,000.

Duke of Westminster
£325,000 slashed to £178,750
A regular in the top five richest men in Britain, the duke receives a healthy remuneration from the EU thanks to his farmlands in Cheshire, Lancashire and Scotland. A report by Oxfam in 2004 claimed his subsidies were the equivalent of £1,000 a day from the taxpayer, compared to the £7 a day in tax credits that a single mother received at the time.

Duke of Marlborough
£370,000 slashed to £203,500
The 81-year-old Duke,head of the Churchill family, received subsidies worth more than £510,000 over a two-year period between 2003 and 2004. His 1,600-acre Oxfordshire estate, which includes Blenheim Palace and largely farms cereals, brings in just under £370,000 a year

Duke of Bedford
£380,000 slashed to £209,000
The Duke's 5,400-hectare Woburn Abbey is widely known for its safari park, but at least half the land is arable, and has been known to bring in more than £700,000 in subsidies over a two-year period.

Earl of Leicester
£250,000 slashed to £137,500
Holkham Hall, the earl's 18th-century Norfolk seat, is surrounded by 25,000 acres of land, much of which is set aside to grow cereals. The estate's 405 hectares of wheat and 486 hectares of barley make him eligible for annual support of around £254,280, the equivalent of £686 a day

Land Grabbers

A bit of local news from West Lothian Herald and Post 8th November .

Community councils are up in arms about the council policy of selling off common land to housing developers .

Land in Stoneyburn sold even though the previous Labour council denied it was up for sale . Stoneyburn Community Council secretary said "It was originally done without our knowledge "

Plans to sell land in Craigshill , Livingston and according to the Community Council secretary " It looks like they were trying to slip it through quietly "

Common land -West Lothian Council - Common Thieves

The Ills of Capitalism

Prescriptions issued in Scotland for anti-depressants have risen more than four-fold in less than 15 years, an NHS report has revealed. For every 1,000 people there were 85 daily doses of the drugs dispensed in 2006, compared with 19 doses in 1992.

Dr Kohli, a medical adviser for NHS Quality Improvement Scotland, said the rise was partly due to a new generation of drugs.

However Shona Neil, chief executive of the Scottish Association for Mental Health, said :-

"Social problems are a bigger factor in the increase than the new drugs - these figures show a huge cry for help from people from deprived backgrounds."

Depression affects about one in five people at some point in their lives.

An appropriate moment to promote a day-school in London at the SPGB Head Office

THE INSANITY OF CAPITALISM

Saturday 24 November from 1pm

Living in a sick society Speaker: Brian Johnson (Disability Counsellor)

Capitalism on the couch Speaker: Peter Rigg (Psychoanalytic Psychotherapist)

Whose messing with your head? Speaker: Ed Blewitt (Clinical Psychologist)

THE UNTOUCHABLES

The plight of Guzar Ahmed seems almost idyllic when compared to the fate of the following Indian woman.
"Soon after she was married, at the age of 10, Usha Chaumar began collecting human excrement for a living - as her mother and her grandmother did before her. Every day for the next 20 years she gathered night soil from 20 houses without lavatories in the state of Rajasthan, carrying it in a pan on her head to the nearest dump. She was paid 200 rupees (£2) a month - the money usually dropped at her feet so that her hands did not touch her employers." (Times, 2 November)
Apparently there are estimated to be 500,000 Indian Untouchables who still earn a living this way. The Indian government have promised to eradicate open-air defecation by 2012, but as this is the same government who say that talk of children in sweat shops is exaggerated we wouldn't put too much store by such a claim. RD

SWEAT SHOP INDIA

Behind the amazing development of capitalism in India lies the harsh reality of child exploitation. "Delhi children's rights activists said that they had received 70 boys who were embroidering garments in small squalid factories in the Indian capital. The boys aged 8 to 14, were mostly the children of farmers in Bihar, India's poorest eastern state. They had been brought to Delhi to make saris worn by Indian women. Gulzar Ahmed, 12, said that he was paid 3,000 rupees (£36) a month for working up to 15 hours a day. The activists, from the Save the Children Mission, said that the children would be returned to their parents. The Indian Government has accused activists of exaggerating the problem of child labour." (Times, 2 November)
We imagine the prospect of one of the government's children working in a sweat shop at 12 years of age is so remote they are unconcerned about poor farmers' kids. RD

HIGHER PRICES AND HIGHER DEATH RATES

The plight of many old workers is illustrated in these sad statistics. "Organisations for the elderly in Scotland last night suggested that anxiety among older people about the cost of soaring fuel prices may be a key reason behind an extraordinary increase of around 1,000 in the number of winter deaths last year. Official figures released yesterday showed that the seasonal difference in terms of the number of deaths between winter and the periods immediately before and after the winter months was 2,750 more than the previous year." (Times, 1 November) RD

THE CLASS DIVIDE

Inside capitalism the rich get access to the best education, best of food and the best of health care, so it should come as no shock to learn that the poor do not live as long as the rich. It has become so obvious that even the daily press can report on it.
"There is no escaping the stark facts. Death knocks seven years sooner at the door of dustmen than dukes, of security guards sooner than solicitors. And new figures from the Office for National Statistics suggest that the gap is refusing to close. The rich get richer and the poor get sicker, sooner. "
(Times, 26 October) RD

Chinese in Antarctica

Further to this post on our companion blog Socialism Or Your Money Back , the BBC reports that China is building its third research station in Antarctica, shoring up its presence just weeks after the UK and Chile made renewed territorial claims. Argentina has also said it intends to present a claim to the UN.
Almost 200 construction workers are heading for the southern continent, the state-run Xinhua news agency says. They will build facilities including a space observatory, radar station and sewage discharge system.

Mineral mining is banned in Antarctica, but analysts say this is not stopping countries from jockeying for position. Competition for territorial and economic rights has heated up as melting polar ice caps have introduced the possibility of exploiting the previously inaccessible seabed. Countries have until May 2009 to ask the United Nations to consider their right to the seabed.

It is expensive being rich

It seems, it is the rich who have it hard. Luxury goods are rising in price three times faster than their more mundane consumer counterparts.

Robby Hilkowitz, executive director of the Stonehage Group which helps the world's super-wealthy manage their incomes said ;-
"Global wealth is growing at an unprecedented rate and as it increases they want more luxury goods to meet their lifestyle needs. With status items, the more expensive they become the more desirable they become..."

There are some 800 US dollar billionaires in the world, a figure that rose by 15 per cent last year. They are among the class of ultra-high net worth individuals with a personal fortune in excess of £25m of net investable assets. The second tier covered by the survey, so-called high worth individuals with more than £5m to spare, grew by 20 per cent.

* School Fees (Up 6.8 per cent)
With a history dating back to the time of Pope Alexander III, Westminster offers one of the most desirable old school ties around. One term's fees for two seniors cost £17,304 in 2007.
* Outdoor activities (Up 8.3 per cent)
Blasting away on the grouse moors of northern Britain was once the preserve of the landed gentry. Today any old hedge fund manager can have a go with a two-day shoot costing £3,600 in 2007.
* Vintage wines (Up 116.9 per cent)
Surely there can be no more famous wine than that emanating from the Rothschild's family vineyard in the Medoc? But three cases of Lafite Rothschild 2000 will set you back £9,250 this year.
* Exclusive facilities (Up 20 per cent)
Sweat with the best, or at least the richest, of them at The Dorchester Gym and Spa. A year's membership cost £1,800 in 2007.
* Luxury accessories (Up 26.7 per cent)
Patek Philippe once made watches for Queen Victoria and Tchaikovsky. The Swiss manufacturer could make one for you too. A limited edition Calatrava cost £19,000 in 2007.
* Football tickets (Up 25 per cent)
Chelsea FC remains the footballing choice of the west London glitterati . One season's executive box hire at Stamford Bridge cost £117,500 in 2007.

Fuel Poverty

Claire Telfer, of Save the Children said :-

"Another winter is fast approaching and far too many children are living in cold, damp homes. The consequences of living in fuel poverty are misery, discomfort, ill health and debt."

Some 600,000 households and 100,000 children in Scotland have been hit by rocketing fuel prices between 2003 and 2006 .

A household is said to be in fuel poverty if it needs to spend more than 10% of of its income to maintain satisfactory heating, according to a UK government definition.

Public Discussion Meeting

...Defaulting US mortgages cause a British bank to crash...Global debt hits a 100 TRILLION dollars...
...Climate change will create widespread flooding , great loss of life , and mass migrations of peoples
....Land-grab for mineral wealth in the Arctic and Antarctica ....
...Oil prices soar as war fears rise on the Turkish-Iraqi border.
..Experts claim future wars will be fought over water...

The Socialist Party wants an end to the market system of buying and selling and of production solely for profit .
We'll be taking a look at the economics of capitalism and the environment – And asking , does it all add up ?

PUBLIC MEETING: FRIDAY 9TH NOVEMBER at 7-30PM
The Quaker Meeting House
Victoria Terrace ( above Victoria St )
Edinburgh

A short talk and then a general discussion will take place .
In the Chair : Alan Johnstone (Edinburgh Branch)
Speaker : Richard Donnelly (Glasgow Branch)

All Welcome Admission Free

Everybody is reading it

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THE WASTEFUL SOCIETY

It is a basic premise of the case for socialism that capitalism is a wasteful society. Just how wasteful it has become was illustrated by the following news item. "The U.S. government spent $43.5 billion on intelligence in 2007, according to the first official disclosure under a new law implementing recommendations of the Sept. 11 commission. National Intelligence Director Mike McConnell released the newly declassified figure Tuesday. In a statement, the DNI said there would be no additional disclosures of classified budget information beyond the overall spending figure because "such disclosures could harm national security." How the money is divided among the 16 intelligence agencies and exactly what it is spent on is classified. It includes salaries for about 100,000 people, multibillion dollar secret satellite programs, aircraft, weapons, electronic sensors, intelligence analysts, spies, computers and software. Much of the intelligence budget - about 70 percent - goes to contractors for the procurement of technology and services including analysis, according to a May 2007 chart from the DNI's office. Intelligence spending has increased by a third over 10 years ago, in inflation adjusted dollars, according to Steve Kosiak at the Center for Strategic and Budgetary Assessments." (Yahoo News, 30 October)
100,000 workers spending their days snooping on other workers. Madness! RD

SUFFER THE LITTLE CHILDREN

Much is made of the tremendous development of capitalism in India over the last few years, but there is a terrible price to be paid in human suffering. "Child workers some as young as 10, have been found working in a textile factory in conditions close to slavery to produce clothes that appear destined for Gap Kids, one of the most successful arms of the high street giant. Speaking to The Observer, the children described long hours of unwaged work, as well as threats and beatings. ... According to one estimate, more than 20 per cent of India's economy is dependent on children, the equivalent of 55 million youngsters under 14." (Observer, 28 October) RD

MORE TROUBLE AHEAD

Politicians like to paint a picture of working class bliss where everybody has an increasing standard of living, but the reality is somewhat different. "The number of repossessed homes looks set to soar next year to levels not seen since the 1990s house price crash, it was claimed today. At the same time, house prices will edge ahead by just 1% in 2008 and property sales will fall by 15%, according to the Council of Mortgage Lenders (CML). The group expects the number of repossessions to rise by 50% during the year, rising from 30,000 this year to 45,000 in 2008. ...The number of people who are in arrears of at least three months is also set to increase, with 170,000 people expected to have problems keeping up with their mortgage repayments next year, compared with an estimated 145,000 this year." (Guardian, 2 November)
The bright words of politicians will appear somewhat tarnished to workers who lose their houses. RD

WALL STREET SHUFFLE

We are always being told that capitalism is a competitive system that rewards success and punishes failure, but what are we to make of the following? "Merril Lynch's directors may be weighing E.Stanley O'Neal's future, but one thing is already guaranteed: a payday of at least $159 million if he steps down. Mr. O’Neal, the company’s chairman and chief executive, is entitled to $30 million in retirement benefits as well as $129 million in stock and option holdings, according to an analysis by James F. Reda & Associates using yesterday’s share price of $66.09. That would be on top of the roughly $160 million he took home in his nearly five years on the job. Under Mr. O’Neal, Merrill moved aggressively into lucrative businesses like the packaging of subprime mortgages and other complex debt securities. ...But those big bets appeared to go bust this week. Merrill announced an $8.4 billion write-down, raising questions about whether Mr. O’Neal will keep his job. One thing that he surely will hold onto, though, are the giant paychecks he has collected. “I lay the blame at the foot of the board,” Frederick E. Rowe Jr., a money manager and president of Investors for Director Accountability. “He was paid a tremendous amount of money to create a loss that is mind-boggling, and he obviously took risks that should never have been taken.” (New York Times, 27 October)
He managed to lose $8.4 billion for the company and can claim $159 million for his efforts. Who says capitalism isn't crazy? RD

WAR IS GOOD - FOR SOME

When it comes to making money there is no such thing as nationalism, loyalty or principles. Take this example of swopping allies when it makes commercial sense
"For the past four years Tomislav Damnjanovic has played a crucial role in the United States’ wars in Iraq and Afghanistan. Since 2003, he has delivered millions of rounds of ammunition, guns, grenades and mortars to the governments of Iraq and Afghanistan, United Nations officials say, facts he does not dispute. His aircraft have even been used to shuttle supplies between American bases in Iraq, saving troops from having to make hazardous trips by land. But it was not always so. For Mr. Damnjanovic, the work has been an unexpected twist in a career dominated not by serving American interests, but by dodging law enforcement agencies, and by smuggling weapons to American opponents and countries under United Nations sanctions, like Libya, and to other parts of Africa." (New York Times, 7 October)
Mr Damnjanovic made millions but his guns, grenades and mortars killed thousands. RD