MISERY IN THE USA

"By virtually every indicator, 2007 was a dismal year for American workers. Job growth slowed, unemployment jumped and wages lost what little ground they had gained against inflation since 2003. There is one sliver of good news: the percentage of American workers who belong to a union rose for the first time in three decades. ...There is little doubt that American workers need unions. Wages today are almost 10 percent lower than they were in 1973, after accounting for inflation. The share of national income devoted to workers’ wages and benefits is at its lowest since the late-1960s, while the share going to profits has surged. The decline in unionization has been a big part of the reason that workers have lost so much ground." (New York Times, 7 February) RD

MIDDLE EAST SUPRESSION

"Predictability is a trait that few would ascribe to the Middle East, yet Arab interior ministers have gathered quietly, every winter for the past 25 years, to talk about how better to secure the regimes they serve. At this year's summit, in Tunis, the security chiefs agreed to toughen rules on publishing, recording or distributing material that might promote terrorism. A worthy goal, surely, except that the region's authorities have a habit of defining as crimes the kind of things their critics would deem legitimate dissent. Despite the flourishing of alternative media, such as satellite television and internet blogs, that challenge once-impregnable state monopolies on the flow of news, governments keep finding new ways to suppress contrary views. Whereas the dictatorships of old snuffed out opponents or chucked them in jail, today's softer incarnations achieve similar silence by subtler means. Hyper-regulation via catch-all laws, plus financial carrots and sticks, tend to replace cruder direct control. In draconian Syria, the vague crime of “disseminating false information” carries a stiff jail sentence. But as many journalists in relatively liberal Morocco have discovered, to criticise public officials is to risk libel charges that carry ruinous fines." (Economist, 7 February) RD

RELIGION IN ACTION

"Baghdad, Iraq: - The images in the Basra police file are nauseating: Page after page of women killed in brutal fashion -- some strangled to death, their faces disfigured; others beheaded. All bear signs of torture. The women are killed, police say, because they failed to wear a headscarf or because they ignored other "rules" that secretive fundamentalist groups want to enforce."
(CNN.com, 8 February) RD

MORE CONSPICIOUS CONSUMPTION

"The best way to a man's heart is through his wheels. And the Ecosse Heretic Titanium motorcycle is about as palpitation-inducing as they come. The first bike made with an all-titanium chassis, it marries high-tech engineering with old-style design. Built for speed, the handmade engine is composed of solid aluminium and is fuel-injected and supercharged. But thanks to a radial braking system with 12 individual brake pads in front, it's easy to stop, too. Made with a carbon-fibre body, the Heretic Titanium is also shockingly lightweight, tipping the scales at about 192kg. And it's comfortable, with an adjustable, ergonomically correct gel-padded seat. As the world's most expensive bike, perhaps it's only fitting that it comes with a matching timepiece ($275,000; www .ecossemoto.com). But with this baby, he'll never be late. (Newsweek, 11 February) RD

THE CLOAK OF RELIGION

The French President has lately been making all sorts of religious speeches for the attention of the media. "When Mr. Sarkozy was made an Honorary Canon of the Basilica of St. John Lateran in Rome last December, he proposed a “positive secularism” that “does not consider religions a danger, but an asset.” He was even more provocative in declaring that “the schoolteacher will never be able to replace the priest or the pastor” in teaching the difference between good and evil. ...In France, a country where one’s religion is typically kept private, Mr. Sarkozy heralds his religious identity, referring publicly to his Jewish grandfather and wearing his Roman Catholicism on his sleeve. “I am of Catholic culture, Catholic tradition, Catholic belief, even if my religious practice is episodic,” he wrote in a book of essays in 2004. “I consider myself as a member of the Catholic Church.” Still, Mr. Sarkozy’s conduct in his personal life seems to contradict the image of Catholic spirituality. Twice divorced, three times married, he has alienated the country to the point that there is widespread disapproval of his behaviour in his personal life." (New York Times, 16 February) It could be that like many politicians before him Mr Sarkozy's religious zeal owes more to expediency than conviction. RD

FASCISM IS NOT DEAD

One of the lies about the Second World War that socialists had to deal with was the illusion that the war would destroy fascism. At the time we pointed out that this was not the case and today we have evidence to prove it. Not only is there a growing fascist movement in East Germany and Russia but now we learn of the situation in Hungary."The far right is on the march in Hungary, literally. In recent months, hardly a week has gone by without a rally being held by the Magyar Garda or "Hungarian Guard," their members decked out in black boots and uniforms bearing nationalist symbols last employed by Hungarian fascists during World War II. Their target: Romany (gypsy) criminals and those who want to integrate Romany children into the country's schools. Their rallies usually take place in communities with a large Roma population, where they style themselves as protectors of ethnic Hungarians." (Yahoo News, 13 February) RD

NO CLASS STRUGGLE?

"British employers are hiring aggressive US-style “union busting” consultants to persuade workers against joining trade unions, Brendan Barber, the TUC general secretary, warned on Tuesday. The TUC and its US equivalent, the American Federation of Labour and Congress of Industrial Organizations (AFL-CIO), are joining forces to “thwart employer efforts on both sides of the Atlantic to demonise trade unions and scare employees from joining up.”
(Financial Times, 12 February) RD

MIND THE GAP (2)

"Economic gloom is spreading. In December a Guardian/ICM poll found that economic confidence remained strong, with 55% voters either very or fairly optimistic about their prospects. Now 51% are pessimistic. The shift is most marked among poorest voters, where confidence has plunged from 51% in December to 33% now. By contrast voters at the top of the economic scale are not alarmed: 64% are confident about their prospects now, against only 60% in December. That suggests the gap between rich and poor is widening, a source of growing public resentment. A large majority, 75%, say the gap between high and low incomes is too wide in Britain, the highest ever level found by ICM." (Guardian, 20 February) RD

RECESSION! WHAT RECESSION?

"But on the evidence of the last three days, art sales are as healthy as ever. Christie's on Monday had the second highest total sales for an individual European sale at £105m, only for Sotheby's to take that title 24 hours later when it made £117m. Last night's sale made £72.9m and saw a record paid for a Bridget Riley work - Static 2 (1966) - as well as artist records for Lucio Fontana (£6.7m) and Gerhard Richter (£7.3m). Pilar Ordovas, head of post-war art at Christie's, said the sale showed the incredible strength of London: "It's a fantastic result, I'm incredibly proud. We beat Van Gogh you know - it's great." Bill Jackson, an independent art and auction consultant, who advises Deloitte on its art collection, said there was no sign of any downturn. "The market is very buoyant, it's extraordinary. I think it can last because there are a lot of very rich people who are not affected by mini-recessions or the market effect." (Guardian, 7 February) RD

British Gas Prices

Latest estimates put 4.5 million UK households in fuel poverty; spending more than 10 per cent of their income on gas and electricity. Just one month after British Gas increased energy bills by 15 per cent British Gas, the country's biggest energy supplier, is expected to announce a 500 per cent rise in profits today.

"It's quite sickening when companies make these huge profits while, at the same time, we are expecting 25,000 excess winter deaths as a result of people not being able to keep warm," said Lesley Davies, the chairman of the National Right to Fuel Campaign. "They prattle on about the winter fuel payments for pensioners but there are just as many single-parent families and others who cannot get the payment."

And like other businesses it isn't only the customer that is suffering but also the employees - The GMB union complained that as well as "fleecing its customers and making record profits" British Gas was scrapping its final-salary pension scheme.

But Capitalism and the competitive market benefits the consumer surely - or at least that is what the capitalist economics textbooks like to state .

In all, 20 active suppliers have reduced to six companies . These big six energy companies are both producers or generators and retailers. That means they make money when the wholesale price is high and they make money when the wholesale price is low. In the most contested part of the market place – the average direct debit, dual fuel customer – only £13 separates the offers from the five companies which have raised prices so far. An average consumer switching from one such deal to another stands to save 25 pence a week.

Capitalism - Delivering a service - But for a price .

THE FREE PRESS?

"According to Reporters without Borders, a Paris-based lobby, more than 200 media workers have lost their lives in Iraq since 2003. In the same period, prominent journalists in Algeria, Egypt, Iran, Lebanon, Libya and Sudan have been killed or gone missing in suspicious circumstances. In the past two months alone, the authorities in Gaza, Saudi Arabia and Sudan have summarily jailed reporters or internet bloggers. ( Economist, 7 February) RD

MIND THE GAP

"When Forbes magazine began compiling a Russian rich list in 2004, it stated that there were 36 billionaires. Last year there were 53, worth a total of $282 billion; and in this year's the editor believes there will be "at least 80" - only the US has more. The 100 richest citizens are reckoned to be worth almost 25 per cent of the nation's GDP, while 20 per cent of the country lives below the poverty line, according to the most conservative estimates."
(Observer Magazine, 17 February) RD

DESPERATE FOR WORK

"A 12-year-old boy was among eight suspected illegal immigrants rescued from a chemical tanker suffering breathing problems, police have said. The eight stowaways have all now been arrested on suspicion of immigration offences after receiving hospital treatment. A Scotland Yard spokesman confirmed that two of the stowaways, including the 12-year-old boy, were Eritrean, three were Iraqi Kurds, and the other three were Iranian. The 55-year-old driver of the German-registered tanker stopped in Abbeywood, south east London, was earlier arrested on suspicion of people trafficking. Workmen laying water pipes reported hearing banging from inside the tank itself. Witnesses said they spoke to the driver before raising the alarm. Two children - boys aged 12 and 16 - were found inside along with five adult men and one woman. Ambulance and fire crews pulled the occupants to safety through a hatch on the top before they were treated with oxygen and taken to hospital."
(Press Association, 8 February) RD

DOING HIS BIT

"In an effort to show that he is cutting his carbon footprint, the Prince of Wales has chartered one of Britain’s biggest and most luxurious private yachts to undertake an 11-day tour of the Caribbean next month. Accompanied by the Duchess of Cornwall, the Prince will visit Jamaica, Trinidad, St Lucia and Montserrat on board the Leander, a 245ft (75m) motor yacht with 25 crew owned by Sir Donald Gosling, the multimillionaire who founded National Car Parks with a business partner on a bomb site in 1948 and collected £290 million when the company was sold in 1998. (Times, 8 February) RD

REF0RMISM FAILS AGAIN

It is a basic socialist principle that no programme of reforms can solve the problems of capitalism, but here is an example where well-intentioned reformism has made the situation worse. "Hospitals were last night accused of keeping thousands o f seriously ill patients in ambulance "holding patterns" outside accident and emergency units to keep a government pledge that all patients are treated within four hours of admission. ... An Observer investigation has also found that some wait for up to five hours in ambulances because A & E units have refused to admit them until they can guarantee to treat them within the time limit." (Observer, 17 February) RD

4 BILLION BUYS FORGIVENESS ?

"Step forward, metaphorically speaking, the late Leona Helmsley, aka the Queen of Mean – a woman who last year went to her final rest in a steam-cleaned mausoleum with her reputation for aggravated rich-bitchiness as rigidly intact as her double-Botoxed, triple-lifted features. She it was, the hard-faced old grasper, who left her dog $12m (£6m) but her grandsons nada unless they visited their father's grave. She it was who disinherited two other grandchildren, who sued her dead son's estate for money she said was owing, and who evicted her recently bereaved daughter-in-law from her home. And she, it famously was, who once said "only the little people pay taxes". But little people don't leave $4bn to charity when they die. Leona, amazingly, did; all four billion notes of it – as much as the cost to the US each month of being in Iraq, the price of 10 years of the worldwide polio eradication programme, and damn nearly what you would raise in the UK if you stuck a penny on everyone's income tax." (Independent on Sunday, 17 February) RD

The tax-free rich

From the Sunday Herald journalist Iain Macwhirter

...According to the BBC business editor, Robert Peston, the top 50 UK-based billionaires paid just £15 million in tax last year on a combined fortune of £126 billion.

In fact, most accountants say that for the modern rich - the 4000 Britons earning over £1 million a year - taxation has become largely voluntary, as there are so many ways of avoiding it.

The man likely to take over Northern Rock this week, Richard Branson, is a champion in offshore tax farming...

...This impoverishment of the middle classes has been disguised by the boom in house prices which gave people an illusion of wealth, as they were "eating" their houses by equity withdrawal - another name for debt...

... As people find out more about the way banks have been manipulating the system to pay themselves stupendous bonuses, attitudes are hardening. British society is no longer in thrall to wealth. Only this time it's the middle classes, not just the working class, who will be taking to the barricades as their living standards decline...

A BOOMING BUSINESS

"Debt collection agencies and bailiffs are raking in unprecedented sums from Britain's growing mountain of personal finance misery, an Independent on Sunday investigation has found. Last year the agencies and bailiffs pursued no fewer than 20 million cases and the methods they used to squeeze money from people are so aggressive that experts ranging from the Citizens' Advice Bureau (CAB) to members of the House of Lords are now calling for legislation to curb these excesses. A growing army of thousands of "debt chasers" is making millions from the misery of Britons who have spent years spending above their means, in what campaigners have slammed as "legalised profiteering".(Independent on Sunday, 17 February) RD

THIS IS PROGRESS?

"Josette Sheeran, the head of the World Food Programme (WFP) in Rome, said “We're seeing more people hungry, and in greater numbers than before. We're seeing many people being priced out of the food market for the first time. We're seeing less crop production in many places; shorter harvest times." ... According to the UN world food index, prices rose by 40 per cent last year. Ms Sheeran said oil prices were driving up costs because oil was used for planting, fertiliser and delivering food." (Times, 13 February) RD

SUICIDE SQUADS

The following statistics are not the sort of thing that the US recruiting sergeant is likely to mention to potential soldiers. "89 - The number of confirmed suicides among US army soldiers in 2007. If 32 suspected suicides are corroborated, the 2007 rate will be the highest since the army started keeping track in 1980. 2,000 - Number of soldiers who tried to take their own lives or injure themselves in 2007, up from 1,500 in 2006." (Time, 18 February)
This is in sharp contrast to all those John Wayne movies we see on TV, where he is a fearless hero. Come to think of it, in real life Wayne was far too clever to join the US army. RD

TRANSCENDAL MATERIALISM

The death of Maharishi Mahesh Yogi led to many newspapers rehashing the stories about the Beatles contact with his Transcental Meditation, but it has transpired that his TM could have more properly stood for Transcendal Materialism. It seemed the great man had sited his HQ in a Dutch village for tax reasons. "As ever, the business-savvy guru was ahead of the game: the big draw is a financial regime that has made the Netherlands the E.U.'s top tax shelter. Among those who have set up holding companies there are Ikea, Nike, Coca-Cola and Gucci."
(Guardian, 7 February)
Like many religious leaders before him this guru told his followers not to be concerned with the material things of life, but in practice was very shrewd about the way capitalism operated. RD

LABOUR'S SORRY RECORD

"Poverty affects 3.8 million children in the UK, making ours one of the worst rates in the industrialised world. Children living in poverty are likely to have lower self-esteem, poorer health, and lower aspirations and educational achievements than their peers. Poverty also shortens lives. A boy in Manchester can expect to live seven years less than a boy in Barnet, North London.
(Times, 12 February) RD

MY AIN WEE HOOSE?

"Home repossessions in Scotland have increased by almost a third over the last three years while, across the UK, they have reached their highest level since the 1990s. New figures released yesterday show that the number of Britons losing their) homes because of mortgage payment arrears has almost doubled in two years. Repossessions have risen for the third year in a row to 27,100, with evidence that Scottish figures are also sharply increasing."
(Sunday Herald) 10 February RD

TRADE NOT RIGHTS IS PRIORITY

"States claiming the mantle of democracy, including Kenya and Pakistan, should guarantee the human rights that are central to it, including the rights to free expression, assembly and association, as well as free and fair elections," it said. "By allowing autocrats to pose as democrats... the United States, the European Union and other influential democracies risk undermining human rights worldwide." ..."Too many Western governments insist on elections and leave it at that," said Kenneth Roth, the executive director of Human Rights Watch. "It seems Washington and European governments will accept even the most dubious election so long as the 'victor' is a strategic or commercial ally." (Independent, 1 February) RD

CONSPICIOUS CONSUMPTION

"If you're partial to all things bling, then a platinum and jewel-encrusted desktop PC could be just what you're looking for. Jupiter from Japanese manufacturer Zeus, features a solid platinum case studded with diamonds which, the company claims, replicate astrological constellations. The PC runs on an Intel 3GHz E6850 Core 2 Duo CPU and features 2GB of DDR 2 memory and a 1TB hard drive. The only downside is its price tag - a cool $746,000. Zeus has also launched a cheaper, gold alternative. It still has diamonds in its case and the same tech spec, but will only set you back a mere $557,284. Both PCs are available now in Japan." (PC World, 31 January) RD

The Blues

An article by the Guardian columnist Jacky Ashley makes interesting reading

According to official figures, up to 12% of people now experience depression in any one year. More telling is a deeper government study that shows that half of people with common mental health problems recover within 18 months but that "poorer people, the long-term sick and unemployed people are more likely to be still affected"

People get depressed because they don't have enough money to keep up in a materialistic and competitive society; because they are ill, or feel worthless without a job and role, or are struggling with caring responsibilities.

As we have grown richer, we have become less confident and optimistic about the future. Our increased material competitiveness has not made us happier.

A NEW SLOGAN

Away back in the 1840s the Chartists had a rather blood thirsty slogan, that socialists could not condone but at least could understand. It was "Here's to the day when the last king is strangled by the entrails of the last priest". The following news item has made us think up a less bloodcurdling, but we think a more appropriate slogan. "The Church of England rounded on the Government for cutting its funding for the upkeep of crumbling cathedrals. English Heritage will give grants totalling £2.1 million - half of it donated by a charity - to 28 cathedrals this year. Senior church figures said the money was not enough." (Daily Telegraph, 8 February) Here's to the day when the last crumbling cathedral falls on the last empty prison. RD

FRIENDLY FIRE?

It used to be said that the first victim of war was the truth, but now it seems that an earlier victim may be logic. How do you tell a Vietnamese family that their daughter's awful death by napalm or an Afghanistan family that their son's death by a smart bomb was all part of a scheme to win their hearts and minds?
"The US army has drafted a new manual which for the first time puts an equal emphasis on winning hearts and minds as it does on defeating enemies by force. The manual is expected to be published later this month. The new guide is seen as a major development that draws on lessons of the wars being fought by US troops in Afghanistan and Iraq. (BBC News, 8 February) RD

AND ANOTHER

"Prisons in England and Wales have hit a new crisis point after the number of inmates reached yet another record. There were 81,681 prisoners - including 375 being held in police stations - beating the previous high by more than 130. (Guardian, 9 February) RD

ANOTHER INCREASE FOR CAPITALISM

"The Council of Mortgage Lenders said 27,100 homes, the highest figure since 1999, were taken over by lenders after people fell behind with repayments. The figure for the UK is more than the 22,400 in 2006, but not as extreme as the CML had forecast. It is still a sharp rise on the 8,500 of 2003. And the CML warned that the number of repossessions was likely to rise again in 2008 as the credit crunch tightened. Meanwhile, the numbers of mortgages behind on payments rose by 8.6% compared to 2006, the organisation, which represents mortgage lenders, said.
(BBC News, 8 February) RD

CAPITALISM NEEDS LABOURERS

"More than 30,000 16-year-olds leave school with no qualifications and a further 10,000 scrape through with a single GCSE at grade D or below, a new analysis of government figures shows." (Daily Telegraph 8 February) RD

BIG BUCK BIGOTS

"Ian Paisley Junior has confirmed he is receiving a salary from Westminster as a researcher for his North Antrim MP father. It is one of three jobs that Mr Paisley has. Sir Alastair Graham, the former chair of the Committee on Standards in Public Life, described this as "very bizarre". "It means he is being paid as an assembly member, a junior minister and also by his father from his parliamentary allowances," he said." (BBC News, 7 February) RD

LOADED BUT STUPID

We are constantly being told by supporters of capitalism that the extremely rich got that way because of their superior intellect. That seems invalid thinking when we see how much the extremely rich will pay for a motor car licence plate.
"But nowhere is the craze for a unique plate more intense than in the United Arab Emirates, the oil-rich Persian Gulf nation that holds the world record for the six most expensive plates. Here, it's all about how low you can go -- with people battling it out at auctions to win the chance to show off license plates with the lowest digit. The numbers "5" and "7" have already been snapped up, sold for 25 million dirhams ($6.75 million) and 11 million dirhams ($2.97 million) respectively." (CNN.Com, 5 February) RD

MORE MONEY THAN SENSE

"An Australian entrepreneur and self-described "thrillionaire" has signed on as the backup space tourist for the next paid flight to the International Space Station (ISS). The Virginia-based firm Space Adventures officially named financial strategist Nik Halik as the backup crewmate to American space tourist Richard Garriott, who is training for a planned October launch to the ISS aboard a Russian-built Soyuz spacecraft. Halik, 38, is paying $3 million to train alongside Garriott as a backup spaceflyer. ...Garriott, a computer game developer, is the son of former NASA astronaut Owen Garriott and will be the first second-generation U.S. spaceflyer when he launches later this year. He is paying about $30 million for the experience." (Yahoo News, 28 January) RD

TOUGH AT THE TOP?

"A study by the Bow Group, a centre-right think-tank, found that 27 per cent of FTSE 100 chief executives have contracts that continue to pay bonuses if profits rise by as little as 1 per cent above inflation. Nearly one in ten firms will still pay bonuses if profits fail to beat inflation." (Times, 4 February) RD

NO PROBLEM FOR YOUR KIDS

Last week, cupcake mogul Nigella Lawson, daughter of former chancellor Lord Lawson and heir to the Lyons Corner House fortune, said she had no intention of leaving her £15 million to her two children. "I am determined that my children should have no financial security. It ruins people not having to earn money," she said. ...Certainly, the tales of wayward heirs are legion. The 7th Marquess of Bristol blew £30 million of his family's money on drugs before dying at 44 of organ failure. Shipping heiress Christina Onassis had four unhappy marriages before dying of a suspected overdose of slimming pills aged 37. Edoardo Agnelli, son of Fiat's Gianni, converted to Islam, was arrested for drug possession in Kenya, and killed himself by jumping off a bridge at the age of 46. (Sunday Telegraph, 3 February) RD

one law for the rich , another law for the poor

From the Sunday Herald columnist Tom Shields and we have to agree much of what he wrote


A TORY MP is caught paying £82,000 from public funds in wages to his Hooray Henry sons; money for which they had done little or no work. The MP is suspended for 10 days on full pay. He is ordered to repay £13,000, leaving a nice little profit of £69,000 from this creative accountancy.
But he did say sorry to the House of Commons. He said: "The committee the committee on standards and privileges; that's as in many privileges and few standards was entitled to reach the conclusions that it did and I have accepted its criticisms in full. I unreservedly apologise to the House for my administrative shortcomings and the misjudgements I made."
The MP will be allowed to sit out the remaining time (potentially until May 2010) of this parliament, receiving £120,000 in wages and God knows how much extra in expenses.

Meanwhile, not so long ago, a Glasgow single mother appeared at Glasgow Sheriff Court after claiming £18,000 in housing benefits to which she was not entitled. She admitted making the false applications after her husband left her. She used the money to pay her mortgage so that she would not have to leave the area and move her autistic son from his special-needs school.
She was jailed for a year. Sheriff Charles McFarlane QC opined: "This is a serious matter which resulted in collecting a significant amount of money for a considerable time. A custodial sentence is the only one for what was a blatant crime on your part."
The woman collapsed as she was led down to the cells.

Derek Conway MP did so to fund a champagne lifestyle for his sons Freddie and Henry. The woman took the money to make life a little more bearable for her son.

Another typical case: a woman was hauled before Chester crown court accused of making fraudulent claims. She had received £74,000 in benefits over 11 years. This is almost as much as the Conway family coined in, but the circumstances were somewhat different. The woman had brought up seven children, five of her own plus two of her late sister's. Her crime was that she did not declare that for one of those 11 years she had a job as a cleaner.
The judge, obviously a perspicacious kind of fellow, said in handing out a nine-month suspended jail sentence: "I take into account the fact your life wasn't easy and you were trying to care for your family. This was not a lavish lifestyle funded by fraud."
He also said: "This is a very serious offence." Obviously, society cannot tolerate a woman taking a wee cleaning job on the side to feed her seven weans.

The honourable gentleman should face criminal charges for misuse of public funds. Henry and Freddie should be in the dock for knowingly accepting money under false pretences. Mrs Colette Conway is also in the frame. As her husband's secretary (on £40,000 a year) she must have been aware of what was going on.

FAT CHANCE

"They fought and nearly died in Iraq and Afghanistan. Once discharged from the army, these men face huge personal problems - homelessness, unemployment and depression - without adequate support. But after doing their bit for their country, shouldn't their country do its bit for them?" (Observer, 3 February) RD

MONEY GRUBBERS

"Senior MPs are demanding an Office of Fair Trading investigation into greedy banks after Egg's decision to ban 160,000 customers from using their credit cards dramatically backfired. Egg's move was initially interpreted as a prudent decision to curb overspending in the light of worsening economic conditions. But hundreds of customers have bombarded internet message boards complaining that they are not 'high risk' but settle their debts every month and incur no banking charges. They claim they are being axed because they do not make any money for Egg, recently taken over by US giant Citigroup." (Observer, 3 February) RD

Fuel Poverty Again

Another contribution to the exposure of the problem of fuel poverty facing workers .

Nearly one in five families with children cannot afford to heat their homes because of rising energy bills, research has shown.

Around 19% of people with children under 17 admitted they were unable to keep their homes warm because of the cost of gas and electricity, according to Save the Children UK.

The group found that a further 15% of households had been forced to cut back on food, while the same proportion spent less on essential clothing in order to be able to pay their fuel bills.

The problem was twice as acute among the UK's poorest families, with 44% of households living off less than £15,000 a year saying they could not afford to heat their homes.

It found that paying for gas and electricity in this way was on average 26% more expensive than paying by direct debit, leaving the country's poorest families paying an extra £215 a year on average.It said British Gas had the biggest price difference, charging 58% more for electricity to pre-pay customers and 47% more for gas than those who paid by direct debit.

UK poverty spokeswoman at Save the Children, said: "Fuel poverty is an outrage, particularly for children. It means that they are experiencing the effects of cold on a daily basis. Children find it more difficult to do their homework in a cold home, and are more likely to suffer ill-health."

Another Failed Target

Further to the previous posting , the target to end fuel poverty in England by 2010 will be missed, according to Government's advisers .
The Fuel Poverty Advisory Group says more than a million vulnerable households will spend more than a tenth of their income on fuel by 2010.
"The Government's policies and lack of action have now made it impossible to meet the target" said the Fuel Poverty Advisory Group

Customers using prepayment meters for gas and electricity paid £140 a year more than those paying by direct debit or online. Those paying by cash or cheque faced bills of about £70 more than those on direct debit, said the group.

TOOTHLESS WATCHDOG

"The government will be publicly castigated this week over its failure to help poor people - by the watchdog that ministers set up to monitor fuel poverty. Ofgem, the energy regulator, will also be criticised for not stopping energy companies from making excessive profits at the expense of consumers. Peter Lehmann, chairman of the Fuel Poverty Advisory Group, will criticise the government over its record on fuel poverty, which he labelled 'incomprehensible, unjustifiable and shocking'. Consumers now pay more than 50 per cent more on utility bills compared with five years ago, yet energy companies' costs have risen by only a fraction of this. In the past month, four of the biggest suppliers have announced substantial rises in the price of gas and electricity." (Observer, 3 February) RD

SOCIALISM? WHAT'S THAT?

"Tony Blair has taken a second big job with a leading financial player, attracted by the prospect of working on its climate-change initiative. The former Prime Minister has joined Zurich, the Swiss company, as an adviser. The appointment, thought to be worth at least £500,000 a year, comes less than three weeks after he took a similar role with J P Morgan Chase, one of the biggest investment banks on Wall Street. That was believed to be a package worth about £2 million a year." (Times, 29 January) RD

SOME DEMOCRACY

When she was in power Mrs Thatcher called capitalism in Britain a "property owning democracy" as she introduced legislation to sell council housing. Her supporters must now be wondering what kind of "democracy" it turned out to be. "More than a million homeowners could be at risk of serious financial difficulty and possibly losing their homes in an economic slowdown, the City regulator warned yesterday. The Financial Services Authority is preparing for a tougher climate of rising inflation and a slower economy. It fears that many homeowners with large mortgages who have borrowed three and a half times their salaries or more could be at risk. The warning comes as surveyors predict today those 123 homes a day will be repossessed this year." (Guardian, 30 January) RD

The real leisure class

An article in The Times reveals the clubbing and pubbing of the wealthy but also exposes the true class nature of to-days society

“Mahiki aims to be egalitarian,” says Conway, an Old Harrovian promoter and fashion journalist . Conway organises the guest list. “If you can get on with anyone, no matter what walk of life you come from, you’re welcome.” But Mahiki excludes on the grounds of money. The drinks bills can be ruinous. The princes’ favourite tipple, the Treasure Chest – half a bottle of vodka, a bottle of champagne, fruit, ice, and eight straws – comes in at £112.50 [ Prince William once paid an £11,000 bar bill here.] “It’s true, money is the big equalising factor. It’s not about where you went to school...Money speaks.” says Conway.

Why is it Tuesday that is the most popular night out for the Sloanes and the rich and thier hangers-on and flunkeys ?

Luke Blackhall, a journalist explains why Tuesday has come to be the most popular night. “It’s the old thing of growing your fingernails to show you don’t do manual labour,” he says. “There is a kind of showing-off involved in going out really hard on a Tuesday night.”

AN UNCARING SOCIETY (2)

If you are old and poor inside capitalism then you are a very low priority to the owning class. "Just 358,000 households received home care in 2006 compared with 479,000 a decade earlier, while nearly three quarters of local authorities now refuse help to anyone whose needs are not considered "substantial" or "critical". Most of those with "moderate" needs, who can not carry out routine daily tasks such as getting out of bed, bathing and doing the washing up, are excluded, along with 275,000 pensioners with less intensive requirements - such as needing help to go to the shop. Another 6,000 elderly people with "high support needs", means they can not bathe or eat without assistance, receive no services and no informal care. Altogether, the CSCI (Commission for Social Care Inspection) estimates 450,000 older people rely on friends and family to get by, even though they have been assessed as needing more help." (Daily Telegraph, 30 January) RD

AN UNCARING SOCIETY

Capitalism's priorities are to make profits and cut costs, so it is no surprise that the poorest, the sick and the mentally ill are treated in such a shabby fashion. "Mental health wards have become "tougher and scarier" places under the Labour government and many are so overcrowded that it is difficult for staff to deliver good care, the official watchdog for detained patients reports today. As an urgent priority, ministers must honour previous commitments that women patients should be safe from sexual harassment, abuse and assault and those children as young as 12 are no longer placed on adult wards, the Mental Health Act Commission's biennial report says." (Guardian, 30 January) RD

Bankrupt Scotland

From an editorial in The Herald

Although it is traditionally people on the lowest incomes who get into debt they cannot repay, the boom in consumer credit, fuelled by rising house prices, has brought many middle-class families to the point where they are only a couple of pay packets away from not being able to meet their repayments. It only takes one setback, such as their marriage ending or losing their job, to plunge them into unmanageable debt.

The 14.5% increase in the number of Scots being declared bankrupt between 2006 and 2007, however, is likely to be a harbinger of worse to come. The scale of the situation is brought home by the fact that the 1563 Scots declared bankrupt in the last quarter of 2007 amounted to nearly twice the average number for any three-month period three or four years ago.
This is a reflection of the record levels of personal debt (one estimate of Britain's debt from credit cards, loans, overdrafts and mortgages is £1.35 trillion) but when that level of borrowing collides with the current credit crunch, these personal disasters will be multiplied. That is expected to happen later this year as fixed-rate mortgages reach the end of their term and require to be renewed, with lenders imposing higher rates to reflect the overall increase in interest rates since August 2006.

There can be no doubt that the tide of debt is rising alarmingly. Home repossessions leaped by 30% in the first six months of last year and householders in Scotland cannot necessarily rely on the relative stability of the housing market north of the border to protect them from the perils of negative equity. Both Motherwell and central Glasgow have been pinpointed as high-risk areas on the latest map produced by the credit reference agency Experian.

With Scottish companies failing at a rate of approximately 55 per month and the Financial Services Authority describing 840,000 mortgages as a cause for concern, the outlook is particularly grim.

A GRIM FUTURE, GRANMA

"Increasing numbers of frail or infirm elderly people are struggling to cope after being unfairly denied social care as councils ration help, the care inspectorate revealed today. Many local authorities are using strict criteria to deny care even to those who cannot wash or dress unaided, according to the Commission for Social Care Inspection. Varying rules on who qualifies mean a postcode lottery applies, says the commission's third annual report. Fewer people qualify for social services care than three years ago, despite a 3% rise in the number of people over 75. And care rationing is expected to get worse: the number of councils funding only those needing "substantial" care increased from 53% to 62% in 2006-07 and is expected to rise to 73% of councils next year. (Guardian, 29 January) RD

WOW, REALLY PROGRESSIVE

After the removal of the Taliban in Afghanistan we were told that there was now a more progressive government under President Hamid Karzan, but what is the reality? "An Afghan court in northern Afghanistan sentenced a journalism student to death for blasphemy for distributing an article from the Internet that was considered an insult to the Prophet Muhammad, the judge in charge of the court said Wednesday. The student, Sayed Parwiz Kambakhsh, 23, who also works for a local newspaper, was charged with insulting Muhammad by calling the prophet “a killer and adulterer,” the judge, Shamsurahman Muhmand, said in a telephone interview." (New York Times, 24 January) RD

CAPITALISM LOVES CHEAPNESS

"The tiny village of Jucu in north-western Romania, which will host a new factory making Nokia mobile phones, currently, earns its livelihood from farming vegetables such as peppers, tomatoes and eggplants. It doesn't have a full-time doctor, a school-house or indoor toilets. Some 60 houses don't have running water. But it does -- still -- have relatively cheap labour. A decision by the Finnish mobile handset giant to move a major production line to Romania this year sparked rage in Germany over job losses, but in the nearby city of Cluj in Romania it calmed fears foreign investment was drying up." (Yahoo News, 25 January) RD

CAPITALISM KILLS

"A decade of fighting in the Democratic Republic of Congo is continuing to kill about 45,000 people each month - half of them small children - in the deadliest conflict since the Second World War, according to a new survey. The International Rescue Committee said preventable diseases and starvation aggravated by conflict have claimed 5.4 million lives since the beginning of the second Congo war in 1998, equivalent to the population of Denmark. Although the war officially ended in 2002, malaria, diarrhoea, pneumonia and malnutrition continue to claim thousands of lives. The study of 14,000 households across Congo between January 2006 and April 2007 found that nearly half of all the deaths were of children under the age of five, who make up only 19% of the population." (Guardian, 23 January) RD

DREAM ON

"Tax avoidance by the super-rich costs the British taxpayer £13bn a year - enough money to increase old-age pensions by 20 per cent. The first ever forensic study of Revenue figures to establish the true scale of tax avoidance by some of the wealthiest people in Britain will pile pressure on the government to prevent the tax burden falling disproportionately on ordinary working people." (Observer, 27 January) RD

F1 - EFF THE SYSTEM

"A record price has been set for a British vehicle registration number plate after a businessman paid £375,000 to buy F1. Afzal Kahn, 37, smashed the previous record of £331,000 paid 18 months ago for M1, to purchase the plate from the Essex County Council. The Bradford entrepreneur, who has built a £75 million fortune through Kahn Design, his specialist car design company, plans to display the plate on his £317,000 Mercedes-Benz SLR McLaren supercar." (Times, 26 January) RD

EAT, DRINK AND BE MERRY

"A restaurant in Britain's financial district has devised a 2,000-dollar-a-head menu for high-flyers to eat into their substantial bonuses, the Financial Times said Saturday. Vivat Bacchus has already taken at least half a dozen bookings for the 1,000-pound (1,347-euro, 1,980-dollar) meal since it began taking reservations on Friday, the business daily said. "Many of them work in the City and often ask for something unique during bonus season," co-owner Neleen Strauss was quoted as saying, adding that some people were unconcerned despite fears for the state of the world economy. "I have found over the years when bad news begins to circulate around the stock market, our City customers never fully lose their appetites," she said. The menu includes royal Seruga caviar, fresh Bahama rock lobster linguini, grilled Wagyu fillet steak, a 15-variety cheese board and chocolate souffle with clotted cream. Each course is washed down with its own glass of wine, including Chateau Lafite Rothschild and Chateau D'Yquem, although diners can upgrade their vintages at extra cost." (Yahoo News, 26 January) RD

Child-care Blues

Childcare costs are rising above the rate of inflation, with parents paying more than £8,000 a year, a charity report suggests.

The Daycare Trust says costs nationally rose 5% last year. Inflation is 2.1%. The average cost of a full-time nursery place for a child under the age of two in England was £159 per week. It also said that the cost of childcare in out-of-school clubs had risen by six times more than the rate of inflation to an average of £43 a week.

The trust said that Britons paid more for childcare than elsewhere in Europe, and many did not claim tax credits and vouchers, which can lower costs.

"Claiming tax credits - which can cover up to 80% of childcare costs - and vouchers from your employer can cut the cost of childcare considerably." said Daycare Trust joint chief executive "But even so, parents in the UK are still paying a bigger share - around 70% on average - of this spiralling cost than their neighbours in Europe, where the average is nearer 30%."

Mortgage Blues

AROUND 123 homes will be repossessed every day during 2008 as people struggle to keep up with their mortgage repayments, research claimed today.
The Royal Institution of Chartered Surveyors (RICS) said just under 45,000 people would lose their home during the year as the cost of servicing a mortgage remains close to record levels .

The figure is in line with estimates from the Council of Mortgage Lenders, which also expects 45,000 homes to be taken over by lenders, while City watchdog the Financial Services Authority said that 840,000 mortgages were a "cause for concern" due to their riskier lending characteristics.

It said a first-time buyer couple who were both on the bottom 25 per cent of earnings, bringing in £26,595 a year after tax, would now have to save the equivalent of 104 per cent of their joint annual take-home pay, or £27,729, in order to afford the deposit, fees and stamp duty for a typical home.

THE DISTORTION OF RESEARCH

David Hind, editorial director of The Bodley Head publishing, in a talk he gave at the Royal Society for the Encouragement of Arts, Manufacturers & Commerce."Attacking astrology, New Ageism and religious fundamentalism is fun and profitable. The trouble starts when it distracts us from far more serious threats to reason...First let us look at the corporations. They pose as the trustworthy guardians of science, yet when they deem it necessary they will manipulate research to ensure the results fit their marketing needs. They even suppress research results outright, with sometimes lethal consequences. These are not accidental and occasional failings: maximising profits is what corporations are for....The pose of trustworthiness, for all its demonstrable falsity. Reaps them vast rewards, in the form of direct and indirect subsidies from the taxpayer. In the UK, for example, under a formula agreed by government and business at the end of 2004, 28 per cent of the money spent on branded drugs is earmarked to support R&D, a subsidy worth more than £2 billion every year. The largest part of this money is spent looking for ways to transform diseases of affluence and lifestyle disorders into chronic, and therefore revenue-generating conditions..." (New Scientist, 19 January) RD

BUSH IN SAUDI ARABIA

"As a Saudi soldier with a gold sword high-stepped in front of him, President Bush walked slowly beside King Abdullah through the shivery grey mist enveloping the kingdom, following the red carpet leading from Air Force One to the airport terminal. When the two stepped onto the escalator, the president tenderly reached for the king’s hand, in case the older man needed help. He certainly does need help, but not the kind he is prepared to accept. ...Blessed is the peacemaker who comes bearing a $30 billion package of military aid for Israel and a $20 billion package of Humvees and guided bombs for the Arabs." (New York Times, 16 January) RD

CONSPICIOUS CONSUMPTION

"The Swiss company Caran d'Ache pays homage to watch making with a new limited-edition fountain pen. Known as the 1010—for the time at which a clock face is considered balanced, and which almost all watch ads display—the pen's body resembles watch gears and the clip a watch hand. Five-hundred silver-plated, rhodium-coated instruments will be sold for $19,000 apiece, and ten 18-karat-gold models will retail for $174,000. It's a sure way to add value to one's signature." (Newsweek, 28 January) RD

A BRAVE NEW WORLD?

"Here's a vision of the not-so-distant future: Microchips with antennas will be embedded in virtually everything you buy, wear, drive and read, allowing retailers and law enforcement to track consumer items — and, by extension, consumers — wherever they go, from a distance. A seamless, global network of electronic "sniffers" will scan radio tags in myriad public settings, identifying people and their tastes instantly so that customized ads, "live spam," may be beamed at them. In "Smart Homes," sensors built into walls, floors and appliances will inventory possessions, record eating habits, monitor medicine cabinets — all the while, silently reporting data to marketers eager for a peek into the occupants' private lives." (Yahoo News, 26 January) RD

INDIAN RUPEE TRICK

Inside capitalism everything has a price even your organs as this news report from New Delhi shows. "As many as 500 poor labourers may have been tricked into operations by a gang of organ traders selling kidneys in a wealthy suburb of the Indian capital, according to a report Friday. Police in Gurgaon, home to call centres and high-rise buildings, raided a house late Thursday on a tip-off from a middleman who was arrested earlier this week, the Indian Express daily reported. Two people, including a doctor, were arrested while three others who had recently been operated on were taken to hospital, the report said. Two men who were yet to be operated on were also rescued. Gurgaon police commissioner Mohinder Lal told the paper that the labourers were paid between 50,000 (1,250 dollars) and 75,000 rupees for a kidney. The kidneys were later sold by doctors for between 800,000 and one million rupees, Lal said, citing information from those arrested Thursday. (Yahoo News, 25 January) RD

1957 and 2006 - Are we better off ?

What difference does 50 years make for the working class . Are we all better off . Well , it certainly appears that way . UK household income has doubled in real terms over the last fifty years. And the pattern of family spending has also changed dramatically. Basic necessities including food accounting for a smaller proportion of our family budget, while spending is up on leisure activities, travel and motoring. Income going to housing makes up a greater share.

According to the BBC and the Office of National Statistics

In 1957, spending on food, fuel and rent , the basic three items , made up nearly half of all household expenditure. Taken together with clothing and travel, basics made up nearly two-thirds of family spending. The main luxuries for the ordinary family were tobacco and alcohol, which combined made up just under 10% of spending. The biggest other luxury item was meals eaten out making up 3% of spending. Four of the top ten spending items were food or drink, with spending on meat, fruit, vegetables and beer all in the top twenty.
Overall, the average family spent a total of £14.30 per week in 1957, out of a gross income of £16. In today's money, spending was £243 per week.

In 2006 the average household spent £456 out of a gross income of £642 before taxes.

In five decades, spending on most basics has declined sharply, with food making up only half as much of the average household budget as it did in 1957. And half of that food budget now consists of meals and takeaways - a new category introduced in the l970s.

But the cost of housing, including mortgage interest payments or rent, has more than doubled since 1957. Mortgage interest payments or rent accounted for 19% of spending in 2006, up from 9% in 1957Using a slightly broader measure of housing costs, which includes council tax, insurance and home improvements, UK households spent an average of £143 a week on housing-related costs in 2006 - or 22%.

Motoring and travel costs have doubled from 8% of spending in 1957 to 16% in 2006, mostly because of rising car ownership .

There are big social divisions in the ownership of some popular consumer goods, and the greater affluence is at least partly a result of more families having two incomes - both parents going out to work .

And But there are big differences in consumption between rich and poor.
Nearly every household in the richest tenth of the population had a computer and an internet connection. In contrast, among the poorest tenth, only 31% have computers and 21% have an internet connection. And 56% of that group have mobile phones, compared to 92% of the richest tenth. The pattern of car ownership also varies sharply by income, with less than a third of the poorest tenth of households owning a car, compared to 94% of the richest tenth of families.

Nor are we happier it is claimed .

According to economist Richard Layard of the London School of Economics, once people can afford the basics, happiness does not increase with income when comparing happiness among rich and poor countries. And looking at surveys of happiness over time, he says levels of happiness have not changed across either the UK - or US - in the last 30 years, despite the doubling of living standards in both. Moreover, the availability of new goods can just make people more jealous of what they are unable to afford, especially for the less well-off.

Other studies show that what we have lost in the last 50 years is time. Strikingly, most families now talk more in the car than at home.

Paradoxically , while we spend more on leisure goods than half a century ago, we have less time to enjoy our free time - increasing numbers of households need two earners as earlier said and working hours have increased even if there has been an official reduction , since doing overtime has climbed .

Blair - quids in

My , isn't he going to be busy man for business . First he has a job with J P Morgan Chase Bank as reported here , although the fee turned out to be 5 times what we believed at the time - $5 million a year . Now Zurich Financial Services AG, Switzerland's biggest insurer have said former Tony Blair has agreed to advise the company on international politics according to Bloomberg.com .
Blair will specifically help the insurer with its climate initiative, the Zurich-based insurer said today in a statement. He will also advise Chief Executive Officer James Schiro on general political trends and developments. No word on the filthy lucre yet though, but it's rumoured to be another half million or so .

SOUTH CAROLINA REMEMBERS

"Although the election has become all about "change", precious little of that commodity can be found in this corner of the Old South. This is where the Confederate battle flag from the Civil War still flutters outside the state capital in Columbia, next to a large statue of Ben "Pitchfork" Tillman, a former Governor who justified and even participated in lynching." (Times, 25 January) RD

NOT SO PRIMITIVE

Daniel Everett once was a missionary in Brazil dealing with so-called primitive tribes, but his experience of the Piraha people made him give up that calling to become a linguist. When asked how he had changed his views he replied: "They lived so well without religion and they were so happy. Also they did not believe what I was saying because I did not have any evidence for it, and that made me think. They would try so hard to understand what I was saying, but it was utterly irrelevant to them. I began to think: what am I doing here, giving them these 2000-year old concepts when everything of value I can think of to communicate to them they already have?" (New Scientist, 19 January) RD

AN INHUMAN SOCIETY

There are many examples of how capitalist society favours property rather than human life, but this is just about the craziest example we have come across recently.
"A Spanish driver who collided with a cyclist is suing the dead youth's family $29,300 for the damage the impact of his body did to his luxury car, a Spanish newspaper reported on Friday. Businessman Tomas Delgado says 17-year-old Enaitz Iriondo caused $20,500 of damage to his Audi A8 in the fatal 2004 crash in La Rioja region, El Pais newspaper reported. Delgado, who has faced no criminal charges for the incident, wants a further 6,000 euros to cover the cost of hiring another vehicle while his car was being repaired, El Pais said."
(Yahoo News, 25 January) RD

GREAT WALL OF CHINA

The biggest division in China today is between the rich and the poor. The advances of Chinese capitalism have left the working class well behind. "Despite its growing wealth, China still has a large number of poor people struggling with dramatic increases in the price of daily essentials such as pork, which jumped by 50%. Inflation hit an 11-year year high in November. Thursday's figures show that it fell back in December, although at 6.5% it remains a worry. The government has introduced a range of price controls recently aimed at bringing the cost of ordinary goods, particularly food, under control. Dramatic price rises have led to social unrest in the past and Beijing cannot afford for its millions of poor to go hungry." (BBC News, 24 January) RD

MASTERS OF THE UNIVERSE?

We are often told that capitalism is a very sophisticated system and that only bankers, investors and stockbrokers can be trusted to deal with its complexities, but recent events suggest otherwise. "French bank Societe Generale says it has uncovered "massive" fraud by a Paris-based trader which resulted in a loss of 4.9bn euros ($7.1bn; £3.7bn). The bank said the fraud was based on simple transactions, but concealed by "sophisticated and varied techniques". It also announced fresh losses of 2.05bn euros related to the sub-prime mortgage crisis in the US. The losses are four times greater than those made by Nick Leeson, the rogue trader who brought down Barings Bank. Leeson was sentenced to six-and-a-half years in jail. ... Richard Fuld, the chairman of Lehman Brothers, told BBC News in Davos that "nothing stuns me; nothing really surprises me these days." (BBC News, 24 January)
It seems that even these so-called masters of the universe haven't a clue about the slumps and booms of capitalism. RD

NINE TO FIVE KILLER

The old saying "hard work never killed anyone", like most old sayings, turns out be nonsense."Work really can kill you, according to a study on Wednesday providing the strongest evidence yet of how on-the-job stress raises the risk of heart disease by disrupting the body's internal systems. The findings from a long-running study involving more than 10,000 British civil servants also suggest stress-induced biological changes may play a more direct role than previously thought, said Tarani Chandola, an epidemiologist at University College London. "This is the first large-scale population study looking at the effects of stress measured from everyday working life on heart disease," said Chandola, who led the study. "One of the problems is people have been skeptical whether work stress really affects a person biologically." (Yahoo News, 22 January) RD

OUR BETTERS?

From a very early age members of the working class are taught to respect authority and look up to "our betters". One of those would undoubtedly be Boris Johnson. His birth, education, wealth and social standing would certainly qualify him for that position. The following news item shows that notwithstanding birth, wealth and social standing he is still a bit of an idiot. "Boris Johnson has apologised for referring to black people as "piccaninnies" and talking about "watermelon smiles". During a debate for the London mayoral contest on Monday, the Conservative candidate said he was "sad" that people had been offended but insisted the words had been taken out of context." (Guardian, 23 January) RD

LIVING ON TICK

The desperate lives of many workers are haunted by debt and poverty. Just how widespread this misery has spread can be seen by this item.
"The scale of Britain's credit dependency is revealed today by a study that shows more than five million people are spending more than they earn every month. The research into the scale of the ''buy now pay later" culture has found spending on eating out, leisure and holidays has soared above inflation and income in the past decade. Millions of people are increasingly using credit to fund their lifestyle and loan repayments have risen at twice the level of income since 1997 as people try to emulate the profligate behaviour of high-spending celebrities." (Daily Telegraph, 22 January) RD

A FRAUDULENT SYSTEM

Governments are always boasting what an efficient social system capitalism is. They also claim how well they run the system, but such a claim seems somewhat hollow.
"Benefit fraud has fallen from £2 billion to £800 million a year since 2000, but the Government is spending more money identifying overpayments than the amount being tracked down, an official report has shown. More than £154 million was spent in the last financial year to identify £106 million worth of overpayments due to fraud, said the National Audit Office (NAO). An MP said the track record of the Department for Work and Pensions (DWP) in recovering money lost to fraud was "frankly embarrassing".(Guardian, 23 January) RD

Global Warming and Capitalism

We are not at all surprised . We have been saying it all along .

The Independent On Sunday carries an article on a report that global warming ranks far down the concerns of the world's biggest companies . Nearly nine in 10 of them do not rate it as a priority . The report's publishers believe that big business will concentrate even less on climate change as the world economy deteriorates.Nearly twice as many see climate change as imposing costs on their business as those who believe it presents an opportunity to make money.

The survey found that only 5 per cent of the companies questioned – and not one in China – regarded global warming as their top priority. And only 11 per cent put it in second or third place. Overall it ranked eighth in business leaders' concerns, below increasing sales, reducing costs, developing new products and services, competing for talented staff, securing growth in emerging markets, innovation and technology. Although most are taking limited action to reduce their own emissions, almost one in five had done nothing.

What we of the world socialist movement said was "We can only 'cure the planet' by establishing a society without private productive property or profit where humans will be freed from the uncontrollable economic laws of the pursuit of profit and the accumulation of capital."

LAND OF THE FREE?

"A chasm still separates the black people of South Carolina, from what Rev Jackson calls their white "brothers and sisters". It is a deep division, as was apparent after a short parade from the porch of Rev Jackson's church to the domed statehouse, where the marchers congregated in the shadow of the South's most defiant symbol of white supremacy, the battle flag of the Confederacy. Across the street from where the marchers were honouring the assassinated civil rights leader Martin Luther King Jnr, a small group of white secessionists jeered. They spoke of keeping alive the memory of the "lost cause", a euphemism for racial domination. Uniformed police and secret service agents mingled with the crowd, watchful for trouble." (Independent, 22 January) RD

HANDS FULL OF DOLLARS

The recent study of the Institute for Fiscal Studies that showed 0.1 per cent of the UK population has an income of £780,000 per annum looks decided modest when compared with the US figures. " ... the IFS's findings will be cited alongside the work of Emmanuel Saez and Thomas Piketty, the US academics who have highlighted how wealth is held in ever fewer hands. Their study, published last year, showed that the most affluent Americans are better off than at any time since the 1920s. The top 10 per cent now account for 48.5 per cent of income, and the top 1 per cent for 21.8 per cent of income." (Times, 18 January) RD

CHINESE CAPITALISM BOOMS

Despite its nonsensical claims to be communist the growth of Chinese capitalism is explosive and inevitably has lead to gigantic differences of wealth. "Growth in China has been spectacular but it has also been unbalanced and has created staggering inequality; the US magazine Forbes identified 66 billionaires on its China rich list last year, their coffers swelled by soaring share prices on the Shanghai exchange. Neither Donald Trump nor Steven Spielberg is rich enough to make it into a table of the top wealthiest Chinese, but most people are still desperately poor, and the Beijing government is worried that rampant food price inflation will lead to serious unrest." (Observer, 20 January) RD

WORDS OF WISDOM

David Attenborough in an interview said: "Every society that's ever existed has felt it necessary to have creation myths. Why should I believe one? People write to me and say: `You show us birds and orchids and wonderful, beautiful things - don't you feel you should give credit to He who created those things?` My reply says: what about a parasitic worm that's boring through the eye of a four-year-old child on the bank of an African river? It confuses me that I should believe in a god who cares individually for each and every one of us and could allow that to happen" (Observer Magazine, 20 January) RD

NO SUB-PRIME MORTGAGE HERE

Many workers as they struggle to pay their mortgage are concerned about the so-called credit squeeze, but it does not affect members of the owning class as can be seen from the following.
"A palatial home complete with a Turkish bath for 20 people has been sold for £50 million, breaking the record for the most expensive new-build house in Britain, which was recently set by a nearby property. Toprak Mansion in north London boasts seven bedrooms, four kitchens and an 80ft dining room containing a 40ft table. It also has a green copper roof, Grecian-style pillars, a grand double staircase, a glass lift, a swimming pool with a glass bridge and a two-acre garden. The new owner, who has not been identified, is reported to be planning to spend £30 million on a makeover by an Italian designer to create a beauty salon, spa, helipad, cinema and squash court. ...The mansion was built on The Bishops Avenue, a street full of palatial homes that was once known as Millionaires' Row, but is now referred to as Billionaires' Row. The price tag trumps that paid for Palladio, a mansion in a nearby street that was bought last year by Lev Leviev, the Israeli billionaire, for £35 million."
(Daily Telegraph, 21 January) RD

LOADS OF MONEY

"In a detailed study of the very rich, the Institute for Fiscal Studies uses data from the HM Revenue and Customs to show that the top 1 per cent of adults - comprising a group of 47,000 people - earn an average of £222,000 a year; while the top 0.1 per cent make a pre-tax income of, on average, £780,000 compared with the average across all taxpayers of £25,000." (Observer, 20 January) No worries here about minimum wage legislation or foreclosed mortgages we imagine. RD

What price a life ?

A cancer patient who was forced to pay out £3,400 per fortnight for the life-saving drug cetuximab has won his battle for funding , having previously been refused the treatment on the NHS , according to the BBC .

Originally ,the Scottish Medicines Consortium said it was not cost-effective because it could only prolong life, not cure him.

Preserving life for as long as possible should be the responsibility of the NHS , the patient is quoted as saying .

Maybe so , but under capitalism , there is always a price tag and a value placed upon a person's life . Not everyone is as fortunate as this patient was .

THE COLD FACTS

Over fifty years ago a popular song of the day was Baby, Its Cold Outside. Today for many workers that song would have to be changed to Baby, Its Cold in Here.
"One in six British households is living in fuel poverty, the highest for almost a decade, according to new figures that threaten the government's target to eradicate the problem in England by the end of the decade. Fuel poverty is defined as when a household spends more than a tenth of its income on utility bills. The consumer group Energywatch said yesterday there are now about 4.4 million of these in the UK, with just over 3 million in England alone." (Observer, 20 January)
Needless to say this "progress" only hurts the poor, the old and the incapacitated; yes only the working class suffer. RD

OF MICE AND MEN

"New research on mice shows the brain processes aggressive behaviour as it does other rewards. .. The mouse brain is thought to be analogous to the human brain in this study, which could shed light on our fascination with brutal sports as well as our own penchant for the classic bar brawl. .... Scientists have known that mice and other animals are drawn to fights. Until now, they didn't know how the brain was involved. The new study, detailed online this week in the journal Psychopharmacology, reveals the same clusters of brain cells involved in other rewards are also behind the craving for violence. "Aggression occurs among virtually all vertebrates and is necessary to get and keep important resources such as mates, territory and food," said study team member Craig Kennedy, professor of special education and paediatrics at Vanderbilt University in Tennessee. "We have found that the reward pathway in the brain becomes engaged in response to an aggressive event and that dopamine is involved." (Yahoo News, 17 January)
Many American apologists for the violence of capitalism have claimed that it is innate in human beings but this is the first time we have heard it blamed on mice. There has been a lot of lynching historically in Tennessee but we have never heard of white mice hanging black mice. The so-called science of "special education and paediatrics" as practiced at Vanderbilt University is to say the least suspect. RD

GOOD NEWS FOR THE HOMELESS ?

"The residence of France's ambassador to Ireland is up for sale with a 60 million euro (45 million pound) price tag that would make it the most expensive home ever sold in the Irish Republic. "It's so big I have to call my wife on her mobile phone if I want to talk to her," Ambassador Yvon Roe D'Albert, who is downsizing to a more modest property, told The Irish Times. The 1,065 square metre (11,450 square foot) house sits on 1.75 acres (0.72 hectares) in Dublin's leafy embassy belt of Ballsbridge and has 10 bedrooms, including one used by former French President Charles de Gaulle. "A residence of such magnitude so close to the centre of Dublin has rarely been offered, if ever, to the market," boasts a sales brochure which also describes it as "possibly one of the finest city homes in Europe".(Yahoo News, 18 January)
We imagine that neither the working class of Paris or Dublin will be making a bid! RD

POLICE ARE WORKERS

Over twenty years ago during the miners' strike the role of the police was questioned by the strikers. There were reports of the police jeering at the miners and holding up bundles of fivers of overtime money and shouting "keep up the strike, we're making a fortune". Now the police find themselves in the position of having to accept a less than generous wage settlement. They are not permitted to strike but they intend to demonstrate their grievances. "Up to 15,000 officers from all 43 forces in England and Wales will march through central London in the biggest police protest for more than a decade. ... Today's protest is the first time that police have marched to demonstrate their anger over a pay deal or unhappiness with a Government reform programme." (Times, 23 January)
Somewhat belatedly some members of the police force may now recognise that they are members of the working class, just like the miners. RD

HEY MAN IT’S A GAS

"British Gas, the UK's biggest power provider, is to raise the amount it charges for gas and electricity by 15%. The announcement followed increases from rivals Npower and EDF Energy, with the firms blaming high wholesale costs. British Gas, owned by Windsor-based Centrica, said that it would make a loss this year without the price rise. Consumer groups and the Unite trade union have criticised the move, saying it would make life harder for firms, the elderly and those on low incomes. Before the British Gas move, Npower raised its electricity prices by 12.7% and gas by 17.2% earlier this month. EDF Energy also put up its electricity tariffs by 7.9% and gas bills by 12.9% this week." (BBC News, 18 January)
But why all the panic? After all we have a caring, sharing Labour government and they will immediately raise the pensions for the elderly and the dole for the unemployed by 15% wont they? What do you mean capitalism doesn't work that way? RD

LABOUR AIDS THE WEALTHY

The Labour Party promised to bring about a more equitable society, but despite these promises the exact opposite has occurred.
"The very rich have grown richer at double the pace of most Britons under Labour and their incomes may have accelerated further in recent years on the back of a rising stock market, research from the Institute for Fiscal Studies shows. Using the most detailed analysis of tax return records to date, the think-tank showed that, in every 1,000 adults, the income of the very richest person rose on average by 4 per cent above inflation every year between 1996-97 and 2004-05. That compared with growth of about 2 per cent for those on middle incomes." (Financial Times, 17 January) RD

CRUELTY AND CAPITALISM

"Amnesty International on Tuesday called on Iran to abolish the "grotesque and horrific" practice of stoning people to death. Amnesty, which opposes the death penalty under any circumstances, said an Iranian man had been stoned to death in July last year for committing adultery, despite a moratorium being imposed on such executions in 2002. The woman he was convicted of committing adultery with still faces the threat of being stoned, a practice that involves the woman being buried up to her breasts in sand and then pelted with stones until she dies. "Amnesty International is calling on the Iranian government to abolish immediately and totally execution by stoning and to impose a moratorium on the death penalty," the rights group said in a 30-page report on the practice. "Iranian law prescribes that the stones are deliberately chosen to be large enough to cause pain, but not so large as to kill the victim immediately ... It is a particularly grotesque and horrific practice." (Yahoo News, 14 January)
It is difficult to quarrel with Amnesty's indignation, but the "grotesque and horrific" practice of starving people in a society capable of producing an abundance and millions of children dying for lack of clean water also seems "grotesque and horrific" to socialists. RD

DIARRHEA BY THE SEA

We are all victims of the allure of holidays by the sea. There is nowhere stronger in its allure than the Mediterranean, but recent reports seem to make that place a little less attractive. "The pristine white beach that stretches for miles here is one of Albania's most popular holiday destinations. But the water is a toxic brew, contaminated with untreated sewage and industrial pollutants. Durres's pollution is among the region's worst, labelled in 2006 by the European Union as a hot spot. But across the Mediterranean, millions of tons of pollution and waste are emptied into the sea each year, according to the United Nations. Some comes from factories or the runoff from agriculture. But untreated sewage is also a major cause. More than half the sewage from Mediterranean coastal development seeps into the sea untreated. Although that percentage is lower than in some other parts of the world – in Latin America, 80 percent of sewage is untreated – the problem is particularly acute in the Mediterranean, whose closed geography means that it takes 100 years to renew its waters."
(Yahoo News, 15 January) Capitalism buggers up everything, even our fortnight "away from it all". RD

DYING FOR THE TOILET

"Five thousand children die every day globally because they do not have access to clean toilets, health experts said on Tuesday. Wealthy governments and donors could make a huge impact on global health by making sanitation a priority, representatives from a coalition of 60 health groups said. They estimated that 40 percent of the world's people do not have access to clean and safe toilets."It is about generating political will, and we also want to see is a real mobilization around sanitation in the aid system," said Henry Northover of Water Aid, which founded the coalition End Water Poverty. "We want to see the G8 (group of industrialized nations) prioritize it this year." This would also go a long way toward meeting global targets aimed at sharply reducing world poverty by 2015, the experts said. Water Aid says 1.8 million children are dying each year before their fifth birthday from diarrhoea." (Yahoo News, 15 January) We've said it before, we will say it again - capitalism is a shitty society. RD

In Debted to Capitalism

Researchers have found that, by the age of 50 years and 90 days, the typical adult will shake off the shackles of debt. In Scotland, debt-free status comes at an average age of 49 years and six months . To pay off their debts, people use a mixture of salary, inheritance, windfalls and profits from investments.

Until then, the average Briton is in debt to the tune of £10,306. Men are deeper in the red, with debts totalling £12,631, while the average woman owes £7,982, excluding any mortgage.

"There are a lot of people in a cycle of debt. They're paying for credit over ten to 15 years, which means they may not pay it off until their retirement." Stuart Glendinning, the managing director of Moneysupermarket.com said .

A spokesman for Your Money Matters said: "As the cost of living continues to rise, we're being forced to save through our twenties and delay the major milestones of life until our thirties. On top of that, the average cost of a house is now well over £200,000 so we're not even getting on the housing ladder until 34. All of this and the average UK salary is just £25,986 for men and £20,488 for women, so it's no surprise that the majority of us are hitting our fifties before shaking off the shackles of debt."

SO MUCH FOR PRINCIPLES

Away back in 1906 when the British Labour Party was formed they made great play of their morality and principles. So they spoke in an almost biblical fashion about ethics. Today however we live in different circumstances and the Labour prime minister has to deal with the real world of capitalism. He represents the British capitalist class and must represent their interests. So while it true that dictatorship and the suppression of democracy may not be very ethical when he visits China he has to remember who are his paymasters.
"He said trade was not "one way" - while Britain would import more goods, it would export its financial services. He and Chinese premier Wen Jiabao have agreed to boost trade by 50% by 2010 and he predicted "tens of thousands" of British jobs would be created. ... Speaking to reporters after talks in Beijing, the two leaders confirmed they had agreed a joint target of increasing two-way trade to $60bn (£30bn) over the next two years." (BBC News, 18 January) And not a word about democracy or free speech we imagine. RD

THE SPORT OF MILLIONAIRES

It used to be said that horse racing was The Sport of Kings now it seems that football is the sport of millionaires. After a series of takeover bids in the premier league, football has moved from the sports page to the financial page. "Manchester United intends to carve out new global sponsorship deals as it seeks to capitalise on a fan base it estimates at 33m, according to David Gill, its chief executive. Announcing a record pre-tax profit of £59.6m for the year to June 30, up from £30.8m the previous year, Mr Gill said future growth would accrue from the first year of the new Premier League TV deal and commercial ventures." (Financial Times, 11 January)
So while United and City football fans might argue in the pub about the merits or demerits of this or that striker's abilities, the real business of football is raking in the loot from sponsorship deals. Capitalism sees everything from a profit angle RD

SMILING WAGE SLAVES

Inside capitalism men and women of the working class have to please the owners. They must be good timekeepers, hard workers and extremely obedient, but now it seems this is no longer enough - we must smile while we are being exploited. "Microsoft is developing Big Brother-style software capable of remotely monitoring a worker's productivity, physical wellbeing and competence. ... The system would allow managers to monitor employees' performance by measuring their heart rate, body temperature, movement, facial expression and blood pressure." (Times, 16 January) "
There will be no frowning in this office, Smith. Smile, damn you. Smile". RD

THE OBSCENITY OF CAPITALISM

The columnist Richard Morrison in an article mocking the ridiculous prices paid for modern art, refers to Don Thompson's book The $12 Million Stuffed Shark and brings to notice the obscene wealth enjoyed by a handful of billionaires. Remember we are dealing with the social system of capitalism where millions exist on a $1 a day. "He looks at the buyers for "trophy" art; billionaires such as the American asset manager Steve Cohen, who bought the shark with what, for him, was loose change (it would have taken him five days, Thompson estimates, to have earned the $12 million price tag). (Times, 16 January)
Overlooking the term "earned", we are talking about someone whose income is over 2 million times that of another. Doesn't capitalism make you sick? RD

GOD AND THE HIGHWAY CODE

The dreadful censorship of the so-called communist party in China and the mind-numbing restrictions of Moslem leaders in the Middle East are often attacked in the Western media but what is not so generally known is the censorship enacted by Christian churches in the so-called free West. "Slovakia's broadcasting regulator Tuesday slapped a two-million-koruna (60,000 euros, 88,400 dollars) fine on a private TV company for mocking the Vatican, a report said. The broadcasting council said a programme screened by commercial station Joj's last year, which mocked Vatican instructions on applying the concept of Christian love to driving, abused viewers' religious sensibilities and was not objective, the CTK agency reported. Priests were "not the best experts" to give guidance on driving since the Vatican possessed "only two kilometres of highway and the last traffic accident was more than half a year ago," the programme mocked." (Yahoo News, 8 January) RD

EVERYTHING HAS A PRICE

One of the craziest aspects of capitalism is its "everything has a price" mentality. Thus an industrial court decides how much the loss of a limb or of an eye is worth in pounds and shillings. Even the loss of a partner in a divorce case is evaluated in money. This news item shows that in Kenya there is even a price put on a murder.
"The price for burning down a home: 500 shillings, or about $8. Double that to have someone hacked to death. The price list comes from a leading Kenyan human rights group that says some of the worst violence in the country's deadly disputed presidential election is the work of militias paid and directed by politicians. The government of President Mwai Kibaki and the opposition have traded blame for the killing and arson that followed Kibaki's victory in the Dec. 27 election that international observers say was followed by a rigged count. Some of the attacks took on an ugly ethnic twist, with other tribes turning on Kibaki's Kikuyu people. But the respected and independent Kenyan Human Rights Commission says there is more to it, and that it appears to involve politicians from both sides." (Yahoo News, 12 January) RD

THE MADNESS OF CAPITALISM

The vast amounts of wealth spent on weapons is staggering as this recent news item illustrates.
"The United States has agreed in principle to provide Israel with better "smart bombs" than those it plans to sell Saudi Arabia under a regional defence package, senior Israeli security sources said on Sunday. Keen to bolster Middle East allies against an ascendant Iran, the Bush administration last year proposed supplying Gulf Arab states with some $20 billion in new weapons, including Joint Direct Attack Munition (JDAM) bomb kits for the Saudis. The plan has angered Israel's backers in Washington, who say the JDAMs, which give satellite guidance for bombs, may one day be used against the Jewish state or at least blunt its power to deter potential foes. Israel has had JDAMs since 1990 and has used them extensively in a 2006 offensive in Lebanon. Israeli Prime Minister Ehud Olmert's government dropped its objections to the proposed Saudi deal in July after securing U.S. military aid grants worth $30 billion over the next decade." (Yahoo News, 13 January)
The bombs may indeed be "smart" but those supporting such a system are very foolish indeed! RD

SWEET FOR WHOM?

"Near what remains of the first sugar factory in Brazil, built in 1877 with a sign in Latin over the entrance that translates as “Sweet is the Reward of Work,” Danuza Gomes da Silva swings a glinting knife as she makes her way down the length of a field cutting cane. She bends to slice the sticks of young cane dropped by other workers from the top of a truck. Again and again she straightens. A band of 12 labourers like her plants about 10 acres a day. Sugar cane buds easily from the ploughed furrows, and it grows fast. But the work associated with it is hard. Danuza, round-faced and soft-eyed, makes between $8 and $13 a day depending on her productivity. At 35, she has four young children. Only 20 percent of the 7.5 million acres planted with sugar cane in Brazil is mechanized. The rest depends on manual labour like hers. ....Machines that plant and harvest are slowly spreading across the expanse of Brazilian cane fields. But Danuza’s harsh existence is a reminder that behind the global buzz over Brazil’s cane-based ethanol production — the 21st century’s environment-friendly bio fuel par excellence — lurk enduring social problems. Ethanol, renewable and relatively clean, is lovely. The life of the migrant Brazilian rural worker, finite and hot, is not." (New York Times, 10 January)
Every advance that capitalism makes it does so out of the exploitation of workers like Danuza. RD

CAPITALISM KILLS

6,000 illegal immigrants from Africa to the Canary Isles died or went missing attempting to get work in Europe. Many European governments decry this illegal operation but they are partly to blame for this trade.
"Ale Nodye, the son and grandson of fishermen in this northern Senegalese village, said that for the past six years he netted barely enough fish to buy fuel for his boat. So he jumped at the chance for a new beginning. He volunteered to captain a wooden canoe full of 87 Africans to the Canary Islands in the hopes of making their way illegally to Europe. The 2006 voyage ended badly. He and his passengers were arrested and deported. His cousin died on a similar mission not long afterward. Nonetheless, Mr. Nodye, 27, said he intended to try again. “I could be a fisherman there,” he said. “Life is better there. There are no fish in the sea here anymore.” Many scientists agree. A vast flotilla of industrial trawlers from the European Union, China, Russia and elsewhere, together with an abundance of local boats, have so thoroughly scoured northwest Africa’s ocean floor that major fish populations are collapsing. That has crippled coastal economies and added to the surge of illegal migrants who brave the high seas in wooden pirogues hoping to reach Europe. While reasons for immigration are as varied as fish species, Europe’s lure has clearly intensified as northwest Africa’s fish population has dwindled." (New York Times, 14 January) RD