Tories squeeze poor to boost profits

Submitted by martin on 11 December, 2012 - 10:31

Tory policy in government has been based on an age-old ruling-class mantra: take care of the rich, squeeze the poor. With a few concessions to the barely-alive social conscience of the Lib Dems, George Osborne’s recent Spending Review was no exception.

He helped the rich by cutting corporation tax to 21% — a level lower than even big business claims is necessary to make the British economy “competitive”. He squeezed the poor by fixing annual benefit increases at 1% for the next three years. At two percentage points lower than the Retail Price Index this is a big cut. For the jobless, disabled, and low paid it will mean, on average, £5 less a week. When you have very little £5 is an awful lot.

Despite the obvious evidence that capitalism has caused capitalism’s troubles, the Tories continue to pin the blame on the poor.

It is not the system which relentlessly pursues profit that has led to global debt crises, the Tories say, but the colossus of a welfare state. And because New Labour let the “something for nothing” culture run away with itself.

George Osborne blames everyone except himself. Even as all of his original economic forecasts — on debt reduction, deficit reduction and growth — fall by the wayside.

The Tories are driven to return again, and again, and again to the troublesome, hateful poor. To the policy of cutting, freezing and capping benefits. They do this because they want to create a political climate where the rich can do as they please. They figure people in work will be so busy despising those out of work they will fail to notice top directors getting fat pay rises, big corporations paying no tax.

But you can’t fool all of the people all of the time. Starbucks has been shamed into paying (some) taxes; some of the lowest paid, cleaners in London, have struck for a living wage.

This month thousands will have to visit a food bank to get their Christmas dinner. Why isn’t Labour making a scandal out of the staggering increase in food aid? 250,000 adults and children will use a food bank this year.

Because Labour can’t or won’t abandon their timid approach to Tory social barbarianism.

Ed Balls condemns Osborne for punishing “hard working families”. But he will never defend unemployed and disabled benefit claimants. Labour willingly swallows the centuries-old disgusting ruling-class tactic of dividing the poor in “deserving” and “undeserving”. Because speaking up for all of the poor would be to direct the blame at capitalism and its political system.

Yet a programme to get capitalism to pay up is relatively simple. A government that stood up for all working-class people would, minimally, increase taxes on big corporations, ruthlessly pursue corporate tax-dodging, raise the taxes of the super-rich, and force bosses to pay a living wage.

It would also expropriate the wealth of banks and high finance. It would create a public bank run under democratic control.

That wealth could then be used to stop all cuts, fund jobs and public services.

We are a long way from that, but a first step would be to raise the debate in the labour movement around such demands.

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