East Midlands Green Party Blog


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Banker’s Bonuses

tax bankers not bedroomsplease sir I want some more cartoon

 

As part of our month’s focus on money and debt, this powerful article is written by Peter Allen, one of our candidates from Derbyshire, East Midlands, looking at Banker’s Bonuses in the light of national and international crisis:

 

With living standards in decline, a million young people unemployed, a crisis in the NHS and social care,  and rising levels of poverty and homelessness,  whose interests  might the government be trying to defend (at public expense) in the European Court ? … why bankers of course!

 

A few years back, after the financial crash, largely  caused by irresponsible behaviour by greedy bankers trying to line their own pockets, all politicians joined in the chorus of popular anger against them. Cameron and co accused Labour (with some justification! ) of allowing bankers bonuses and pay levels to get out of hand.

 

It was a sentiment that spread across Europe ( although in truth the amount of bonuses paid out in London was far higher than elsewhere in Europe) and has led to a new regulation ( agreed by all the other governments but being legally challenged by the UK ) which caps the bonuses payable to bankers. The cap is pretty generous (100% of their huge salaries or 200% “if shareholders agree”) but is being opposed by Cameron and co who argue that “it will just mean banks increase basic salaries instead”.

 

Perhaps the UK government is actually injecting a reality check, knowing that financial institutions are highly skilled in getting round regulations? Certainly the evidence of the last few years is that, having been bailed out by European taxpayers, they intend to carry on “business as usual”, making speculative decisions in the interests of short term gain, rather than investing for the long term benefit of Europe and the world.

 

The Green Party was not against injecting public money to stabilise financial institutions after the crash of 2008. but it said then, and it says now, that the bailout should not have been unconditional, allowing banks and bankers to continue to behave as previously. Rather public money should have been used to invest in a transformation of our energy supply, transport infrastructure and housing stock, creating decent jobs and starting to seriously address the imminently devastating impact of climate change.

 

In order to ensure the above banks will have to be properly regulated. This will require agreement at international level by governments committed to real reform. The election of such governments will require the creation of popular movements for radical change, across Europe and beyond, to challenge austerity and promote greater equality. Green MP Caroline Lucas, speaking to New Internationalist magazine in advance of the launch of the People’s Assembly earlier this year, summed it up

 

” It was an international banking crisis and this is an international crisis-and although each country has very different circumstances international solidarity and working together is absolutely crucial. Capitalism is international and people’s movements need to be international as well”

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Child Poverty Rising – action not redefinition of poverty please!

A modern Oliver Twist

A modern Oliver Twist

Over one in four children in the UK are living in poverty according to Child Poverty Action Group UK. In 2010 the Child Poverty Act came into being in the UK. In 2013 child poverty is still set to rise under current government policies. Last year Save the Children and Shelter are among NGOs who have made appeals on behalf of children living in our neighbourhood.  Children are the future, but in a political system of short-term fixes, they are not prioritized. In some areas 50 to 70 % of children are in poverty and this includes areas of the East Midlands. This does not mean absence of the latest trainers or toy. Child poverty can mean hungry or malnourished, cold, or in insecure housing, deprived of the basics. Many are homeless. In November last year The Independent reported a 60 % increase within 12 months of children and pregnant women forced to live in B&Bs.  Even more have insufficient food, clothes or too little heating to thrive. Many are not financially able to socialize with other children or buy stationary for school. Some serious physical and mental illness in children has poverty as a factor.   As child poverty rises, rather than taking measures to prevent the poverty, the government are changing the way that poverty is measured.  Many children may not be counted under proposed changes. I believe every child counts.

The Child Poverty Action Group states well over half these children are in homes where at least one parent works.  The Government are removing the measurement of relative poverty; poverty defined as relative to the standards of living in a society at a specific time. As more and more people are in poverty our overall standards of  acceptable poverty may be changing. Yet the relative poverty measurement includes the poverty threshold or bread line, under which no one should fall. The bread-line measurement is one that protects by opening up help to those who fall below its threshold. In proposed changes instead emphasis will be placed on  how many children are in single parent households and how many have a parent with a mental health condition. These sorts of calculations will be the focus. Reality is more complex, with poverty spiraling from some individual error or illness and massive system failure. Causes and symptoms of poverty can be tangled together. However, under new measurements depression and broken families can be seen as the cause of poverty rather than poverty being a cause of  depression, broken families and a whole host of other entangled social problems. It will become even easier to shift blame onto single mums and dads or on perceived unfit parenting.  It will be easier to make much poverty invisible as children disappear from view. It will be another way of making the vulnerable into scapegoats and valuing profit more than we value people.

Poverty kills. It kills chances and choices too. It isolates. It hides. It divides. It comes in many forms and is magnified by overcrowded schools as well as the squeezing and stretching of the public sector and volunteer organisations. What is our government doing? It is in a process of reclassifying poverty to change the statistics instead of tackling the problem. As I write, the review of how poverty is measured in the UK nears its end. Many of the one in four or more children that now have too little to eat, dress or keep warm adequately may no longer be classified as poor. The blame and responsibility will be placed even more upon single parents for being single, to those with mental health issues or disabilities for being ill. If we allow this to govern our perception, shame and statistics may hide poverty deep and many children may vanish. They will vanish from possible bright futures and chosen careers, they will vanish into depression, abuse or drug misuse. They will vanish into illness caused or made worse by cold or malnutrition but we’ll be told it’s OK because they won’t be counted, they won’t be seen on revised statistics. In the work houses of previous centuries children who died of poverty were listed as suffering from ‘failure to thrive’. Will we use a different name for it now?

children with (mild) rickets

Before the NHS was founded children having diseases like rickets were common. A disease often caused by malnutrition which softens and deforms the bones. Rickets is on the rise again according to NHS, Guardian and other sources. Hardly a way to help children stand strong in the future. This happens as more children and their families are dependent on food parcels and, as Mike so eloquently wrote in our blog’s previous post, school dinners are being undermined too, as is the NHS. Social exclusion, financial limitations and lowered self-worth don’t help with healthful activity levels either.  I feel sometimes as if we were travelling back in time. More alarmingly, I see people’s sense of what is OK shifting as the working poor and those not able to work are pitted against one another. Unemployment is rising because both government and many businesses translate cost cutting and waste reduction as job cutting. More people are poor so we are taught to blame the poor.

Children are among the most vulnerable to the way economic, social and environmental crisis are being mismanaged. In so many ways children are developing and dependent. Public service cuts, we are told, are the only way.  The resultant rise in unemployment affecting family and home security. It also means loss of services for most in healthcare, education and safety and waste of skills is part of the price children are paying. Children are inheriting economic poverty, health poverty, food and soil poverty and all too often the poverty that breaks the spirit of a person; their self worth and future possibilities cracked. Yet billions spent on new roles of police commissioners in shrinking police forces, trillions spent on outmoded weapons or lost in unpaid taxes of the super-rich are seen as normal. Our lives and political priorities are most certainly mis-measured.  Yet these new measurements seem to be moving in the wrong direction; they seem to be the measurements of misdirection and not seeing.

Many believe in the notion of keeping your head down; that it will limit injury. Sometimes it just stops us protecting ourselves and others. If water rises those with their heads down will drown. It may be too late to change how this government counts children in poverty. It is not too late to see children are in real poverty, to demand proper action  and to challenge measurements as and where they do not work. The children on your street, in the school, in your home count. Their futures are entwined. Child poverty is real and needs to be prioritized as central indicator of the state of our nation, not re-classified and veiled. I believe Green Party anti-austerity policies, support of robin hood tax, NHS, schools, a living wage and localized sharing economies places focus back on what is vital and protects children from poverty. I believe strongly we must build on this.