Last weekend the Sunday Times published it’s annual list of the richest people in Britain. Apparently the total wealth of the richest 1,000 individuals and families in Britain has more than doubled in the last 10 years to £547bn.
The scandal of this is that these wealthy people’s rising fortunes IS George Osborne’s much vaunted ‘recovery’. The increasing wealth of the most wealthy in our society shows up in the economic figures as growth, papering over the stagnation that ordinary people experience in the parts of the economy that they participate in.
Perhaps there is growth on average, but the ordinary voter isn’t benefitting. Why? Because the wealthy have no need to spend much if any of their gains in the real-life economy, so they just add it to their hoard, boosting the economy only in areas like banking and finance or the superinflated London property market, where it works mostly to benefit others who are already wealthy. So growth does exist, but it’s quite tightly limited to the rarefied world of the wealthy, while the rest of the country’s barely ticking over.
Don’t be taken in: it is not success when very few people take in such vast sums of money that their huge wealth outweighs the poverty of millions to make the country look like it’s getting richer. That’s not a healthy picture.
The huge political con trick the Tories are pulling off is to claim credit for this “growing economy” and disingenuously claim this means their savage counterproductive cuts are working and delivering prosperity for all. Austerity is simply a ruse to re-engineer the country to benefit the wealthy and powerful and disempower ordinary people, an excuse to strip away those public services the wealthy don’t need and wouldn’t dream of using, but the rest of us depend on.
Of course Labour isn’t much better. Although they didn’t cause the economic crisis, when in government they too had been facilitating widening inequality, i.e. letting the wealthy fleece the rest of us because it looks good on paper economically.
An economy that is really working properly benefits everyone, so that there are plentiful well paid jobs, so that everyone has money to spend, and taxes to pay. And the best foundation to achieve this is the best possible public services and strong regulation to curb the worst excesses of rapacious market forces. This way the workforce are healthy and secure with happy and stable lives, not desparate wageslaves struggling through a hand-to-mouth existence, using foodbanks and claiming benefits.
It’s no coincidence that those countries who do run things that way, like the Scandinavians for instance, are also the ones that are the most successful and resilient economically, and have the best quality of life for their citizens.
The way economic performance is currently reported, a trillion pounds of turnover among a few wealthy people in the city of London counts the same as a trillion pounds across the whole of the rest of the country, but the difference in terms of the number of people sustained and benefitted are worlds apart. Only that tiny proportion who are involved in the superheated London economy see the benefit. We need a more equitable metric that measures the performance of the economy at ground level across the whole country. The goal should be prosperity for all. Shouldn’t this be how the people’s government should be measured?
Capitalist neoliberalism is founded on the pipedream that financial success is a virtuous circle that creates wealth from nothing, so that growth can continue ever increasing ad infinitum. Our planet is bountiful and can sustain us all, but its resources are finite. Successful people’s competitive nature makes them imagine they are deserving of their rewards, that they must have worked harder or been cleverer and are therefore justfied in taking more than their share of the resources we share, but this simply doesn’t stack up.
The distortions of inequality are worsening, and our society is becoming more and more disfunctional. The inconvenient truth is that for every huge winner there are an awful lot of huge losers. The fact is that each of us has our talents and a similar number of waking hours, and nobody ever made a fortune except by leveraging the efforts of others. Sure, those who are skilled and able and committed and put in a lot of effort deserve to be rewarded better than those who simply turn up to work and do as they’re told, but how many multiples is reasonable? How can any person’s contribution be worth many thousands of times that of someone else who works a full week?