Cameron Falsely Blames Eurozone Crisis for UK Stagnation

With unemployment figures showing that the government’s growth strategy is moving the UK in the opposite direction to its supposed intention, David Cameron has resorted to blaming the crisis in the eurozone for the continuing stagnation in the UK economy.

While we wouldn’t deny that has some impact, it seems to us that the real culprits lie much closer to home ~ those who appear to want to maintain their own vested interests while ‘reforming’ the rest of the UK economy.

30 years ago, the UK was one of the most equal economically equal countries in the developed world. Now, precisely the opposite is true. It’s one of the least equal. Only Russia has seen a comparable shift on a similar timescale.

The government’s austerity politics, supposedly brought in to address the ‘debt crisis’, conceal the fact that austerity applies only to those who … well, those who aren’t captains of industry, finance, or government. There’s plenty of money sloshing about. It’s just that almost all of it seems to be in the coffers of an ever-smaller number of people.

The concept of a winner-takes-all economy is beginning to be exposed as the falsehood it patently is. Competition is no panacea, and as any reader of Darwin understands, he never proposed the law of survival of the fittest in the sense it is often interpreted; as an invitation to highly individualistic striving. In fact, he was aware that “sometimes competition over rank could produce benefits to the individual at the expense of the group”.

So it is with cuts. They decrease the total resources available for tackling the challenges, and it’s already abundantly clear that the private sector is not picking up the slack caused by swingeing public sector job losses.

As False Economy demonstrates convincingly, cuts simply can’t perform the job they have been enlisted to perform. What’s needed is for those at the helm of our society to accept a cut in their colossal incomes for the sake of all our social and economic health. This includes their own; in the long term, a highly unequal society stifles the potential of all its members.

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