A blog on social / public issues / education and cultural life in Catalonia, Spain and wider Europe.
Showing posts with label public finance. Show all posts
Showing posts with label public finance. Show all posts
Wednesday, June 23, 2021
Saturday, August 22, 2020
"Something remarkable happened this August: How the pandemic sped up the passage to postcapitalism"
"Two days ago, something extraordinary happened.
Something that has never happened before in the history of capitalism.
In Britain, the news came out that the economy had suffered its greatest slump ever – more than 22% down during the first 7 months of 2020.
Remarkably, on the same day, the London Stock Exchange, the FTSE100 index, rose by more than 2%.
On the same day, during a time America has ground to a halt and is beginning to look like not just as an economy in deep trouble but also, ominously, as a failed state, Wall Street’s SP500 index hit an all-time record.
Unable to contain myself, I tweeted the following:
Before 2008, the money markets also behaved in a manner that defied humanism. News of mass firings of workers would be routinely followed by sharp rises in the share price of the companies “letting their workers go” – as if they were concerned with their liberation… But at least, there was a capitalist logic to that correlation between firings and share prices. That disagreeable causality was anchored in expectations regarding a company’s actual profits. More precisely, the prediction that a reduction in the company’s wage bill might, to the extent that the loss of personnel lead to lower proportional reductions in output, lead to a rise in profits and, thus, dividends. The mere belief that there were enough speculators out there thinking that there were enough speculators out there who might form that particular expectation was enough to occasion a boost in the share price of companies firing workers.
That was then, prior to 2008. Today, this link between profit forecasts and share prices has disappeared and, as a consequence, the share market’s misanthropy has entered a new, post-capitalist phase. This is not as controversial a claim as it may sound at first. In the midst of our current pandemic not one person in their right mind imagines that there are speculators out there who believe that there are enough speculators out there who may believe that company profits in the UK or in the US will rise any time soon. And yet they buy shares with enthusiasm. The pandemic’s effect on our post-2008 world is now creating forces hitherto unfathomable..."
Read more from source here.
Sunday, February 9, 2020
"The EU's Green New Deal is a colossal exercise in Greenwashing"
Yanis Varoufakis, leader of DiEM25 (Democracy in Europe Movement 2025) and progressive left member of the Greek parliament argues in The Guardian newspaper that a major mistake is being made...
"Ursula von der Leyen’s signature proposal co-opts the slogans of climate activism, but has none of the substance.
"Ursula von der Leyen’s signature proposal co-opts the slogans of climate activism, but has none of the substance.
Emergencies tend to reveal our true priorities. When our house is burning down or the storm waters are flooding in, we hold on to what we value most, and leave the rest behind.
A decade ago, the leaders of the European Union found themselves facing such a moment. With the French and German banks falling into a black hole, they did whatever it took to save them. Between 2009 and 2013, European governments channelled €1.6tn (£1.36tn) to Europe’s bankers, while imposing stringent austerity upon the European citizens they pledged to serve. When in 2015 they realised that more support was necessary, the European Central Bank printed €2.6tn over just four years.
Now, Europe confronts a crisis of far greater severity: a climate emergency. And so, last month, EU commission president Ursula von der Leyen unveiled the European green deal, a €1tn, 10-year plan to reduce the EU’s greenhouse gas emissions by at least 50% compared with 1990. “This is Europe’s man on the moon moment,” said Von der Leyen.
At first, one cannot resist comparing the two sums and the priorities they reveal: more than €4.2tn to save Europe’s financial sector; €1tn to save our world."
Read more from source here.
Friday, August 3, 2018
"Greed, ineptitude and austerity fanned the flames of the Greek wildfire" -- Yanis Varoufakis
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| [DiEM25 co-founder, Yanis Varoufakis] |
"ATHENS: A biblical calamity befell the Attica region last [month.]
I saw its first sign in the late morning at Athens airport, where I was seeing off my daughter to Australia. A strong whiff of burning wood caused me to look up to the sky, where a whitish-yellow sun beckoned, surrounded by the tell-tale eclipse-like daytime darkness that only thick, sky-high smoke can cause.
By the early evening the news had cascaded in. Many of our friends’ and some of our relatives’ houses were destroyed in northeast Attica. Forest fires had run amok, spreading westward towards the heavily built-up coastline, cutting the settlement of Mati and the town of Rafina off from Athens, forcing residents to flee towards the sea.
The first I knew of casualties was when told of the plight of activists belonging to our political movement, DiEM25. Their house in Mati was destroyed by the flames, along with every other house on their street, but at least they had escaped with their lives, just. Next door their neighbours perished, their corpses discovered next morning, crouched together, their three-year-old girl in the middle of a heart-breaking huddle.
And the ominous news continued to stream in: a friend and her husband, whose house is in ruins, are missing. A cousin, whose house sits on a cliff by the sea, had to jump more than 200ft into the rocky waters below as his house was burnt down — thankfully to be rescued by fishermen. However, 26 other people, who had come very close to the same coastline, succumbed to the smoke and flames before they could jump. As I write this, the official death toll stands at at least 83. Dozens are still missing.
Why did it happen? On this, our Black Monday, the weather conspired with Greek society’s, and our state’s, chronic failures to create the murderous inferno. A particularly dry winter had produced large quantities of forest and bush fuel ready and willing to wreak havoc on a Monday that brought to Attica temperatures of 39C and 80mph winds.
In addition to nature’s guilt, there is of, course, stupendous human culpability. Greek society’s postwar economic model, which relied on anarchic, unplanned property development anywhere and everywhere (in ravines, pine forests and so on), in effect invited nature to punish us, like any Third World country, with lethal forest fires in the summer and flash floods in winter. (Indeed, last winter 20 people died in houses built on the bed of an ancient creek.)
Society’s collective failure is aided and abetted by the Greek state’s perpetual lack of preparedness: for example, the failure to clear fields and forests of accumulated kindling during the winter and spring, or to organise escape routes for residents in case of an emergency.
Then there are the usual crimes of the oligarchy: for example, the enclosure of the coast around seaside villas for the purposes of illegally privatising the beach. Many died or were badly injured flailing against the barbed wire the rich had put in their way as they struggled to get to the sea. And last but not least, humanity’s collective guilt due to the manner in which rapid climate change is turbocharging the natural phenomena that punish our human foibles.
As is often the case every time Greece is ravaged by forest fires, the government hinted at arson. While I cannot rule out the possibility of foul play by profiteers, I am not convinced of this. Greek governments have traditionally found it convenient to blame profiteers, arsonists, terrorists, foreign agents even. Why? Because in so doing they avoid having to confess to their lack of preparedness, for having failed to impose laws and safety regulations, for not having organised or funded the emergency services properly.
What role did austerity and Greece’s ongoing Great Depression play in the ineffectiveness of the response? The fire department, the citizens’ protection agencies, the ambulance service and hospitals are terribly understaffed because of austerity, undoubtedly.
While the fires would not have been stopped if we had had three times the fire brigade staff and firefighting aircraft, a country that for a decade now has witnessed the steady diminution of its public services, its communities, its morale, can scarcely be expected to prepare itself well for a calamity boosted mightily by climate change.
Journalists ask me: is the EU helping? The reality is that Europe has made itself irrelevant when it comes to such issues. Truth be told, we had destructive fires before Greece entered the EU, before we swapped the drachma for the euro, and afterwards. Europe played no role in helping us fight the flames, a task that is not in its remit. But while Brussels cannot be held responsible for the fires per se or for 70 years of Greek society’s abuse of our natural environment, it is unquestionable that it has depleted the Greek state of most resources and capabilities.
Might, therefore, this not be the moment (the same journalists ask) for Athens to rebel and demand the end of austerity and of the spending cuts that are detrimental to Greece’s survival? Of course. Every moment is a good moment to confront Brussels, Berlin, Frankfurt and so forth to break free from the straitjacket of inane austerity and misanthropic social policies that are responsible for Greece’s permanent humanitarian crisis.
For a decade we have been losing many more people to the tragedy caused by the EU establishment than to any flood or forest fire. The number of suicides rose sharply immediately after the introduction of new austerity measures in 2011, while more than 1m have emigrated because of the economic depression the EU has imposed on Greece.
While I fully expect crocodile tears to be shed by Brussels over our burnt-out victims, and similarly hypocritical gesturing by the Greek government, I do not expect any reversal of the organised misanthropy afflicting Greece just because so many Greeks died last Monday.
Until and unless progressives get organised across Europe, willing to accept local responsibility while banding together to impose a change of policy at the European level, nothing will change, except perhaps a further strengthening of Greece’s Golden Dawn and other populist political parties in Italy, Germany, Austria and the Polish-Hungarian illiberal nexus.
Greece’s forest fires, in this context, are a tragic reminder of our collective responsibility as Europeans."
© Project Syndicate, 2018. (Also published in The Sunday Times.)
The author is Greece’s former finance minister and co-founder of DiEM25, the Democracy in Europe Movement 2025.
A WeMove petition on the fires in Greece here.
A WeMove petition on the fires in Greece here.
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Yanis Varoufakis
Saturday, July 14, 2018
"Work, money, machines" -- My latest opinion column for Catalonia Today magazine
My twin brother is a poet. Usually when I tell my adult English students this they ask me how he is able to survive economically.
They are always surprised when I say that Australia has an unemployment benefit paid monthly by the government and that this benefit does not stop after six months, as it does in Spain.
[This article was first published in Catalonia Today magazine, July 2018.]
They are always surprised when I say that Australia has an unemployment benefit paid monthly by the government and that this benefit does not stop after six months, as it does in Spain.
Of course my brother, just like all the other recipients of 'the dole,' as it's called there, have to jump through bureaucratic hoops and many have recently been victims of all sorts of horrific stuff ups by a system that is being privatised.
Yes. Soon the payments the poorest live on will be controlled by businesses that put making a profit from their 'clients' as their biggest interest. In Australia these unemployment benefits are only just enough to live on if they are combined with other government payments such as rent assistance.
I have a friend living in Barcelona who is a very talented graphic artist and is also a photographer with a unique eye. Like me, he teaches to pay the bills because his creative work does not get him and his family consistent income. Also like me, he enjoys his classes but would ideally like to be spending more time on using his talents to make new 'products' as our consumer society would insist on calling them.
But there is a wider question for every society here. Is a form of guaranteed basic income a good idea?
Some people argue that the public purse should not pay people to do what non-creatives believe to be just hobbies but this is missing a vital point. Practically every industry is now using greater numbers of robots and other types of automation and mechanisation.
When I was leaving university in the early 1990's a guaranteed job for life was working in a bank. We now know this rapidly became not the case and branch closures across the world have meant the loss of most banking jobs.
When I was leaving university in the early 1990's a guaranteed job for life was working in a bank. We now know this rapidly became not the case and branch closures across the world have meant the loss of most banking jobs.
Mainly this has been because machines now do the jobs that people used to do and the finance sector is only one place where this type of change is marching on. At Amazon for example, every job that can be done by a mechanical device is being done by one.
The people who work there have to keep up with the productivity of machines (even if it costs them their nervous systems) or they are simply fired and replaced with another very low paid worker who works long, long shifts almost exactly as a robot does.
Not long ago, I myself once worked in a full-time job for one of the world's largest smartphone companies (sitting at a computer) until one day my right arm completely froze-up after months of tendinitis problems caused by using a mouse at a high speed.
I was sacked the same day I came back to the office after being on medical leave for this problem. My body just would not work as a machine does.
The people who work there have to keep up with the productivity of machines (even if it costs them their nervous systems) or they are simply fired and replaced with another very low paid worker who works long, long shifts almost exactly as a robot does.
Not long ago, I myself once worked in a full-time job for one of the world's largest smartphone companies (sitting at a computer) until one day my right arm completely froze-up after months of tendinitis problems caused by using a mouse at a high speed.
I was sacked the same day I came back to the office after being on medical leave for this problem. My body just would not work as a machine does.
The question that has to be asked and answered is what do our societies do to deal with increasingly significant numbers of people who don’t have enough paid work or even any paid work.
Economic survival can be close to impossible. In much of Mediterranean Europe the family unit has typically helped out, as have charities but this has created an uneven coverage of the basics of life for many people.
Economic survival can be close to impossible. In much of Mediterranean Europe the family unit has typically helped out, as have charities but this has created an uneven coverage of the basics of life for many people.
The obvious solution is a universal basic income for every individual in society. Europe’s newest progressive political party DiEM25 believes that the funding for this “should come from a dividend, financed from the returns on all capital; a 'public' percentage of companies’ profits, especially for companies that commercialise technology developed from public funding.”
In other words, “Technological progress should not simply serve capitalism.”
In other words, “Technological progress should not simply serve capitalism.”
The great benefit from this is that it would allow creativity to flourish and people who prefer paid work at a higher income can do that too.
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| [Image: Nacho Diaz] |
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