Nov 23

The Kleptocrats are fond of throwing the Socialism label about and damning state intervention. Yet they only mean state intervention to give more than subsistence food, shelter and clothing to the poor. State non intervention to prevent the cost of their pollution being paid by them. State non intervention to make them pay the long term environmental cost of just digging up the land and forests.

The economies of Western Europe are not collapsing under welfare payments but debt. More specifically debt guaranteed by Govt in the name of the people that the like of Mitt Romney labels spongers. Debt in terms of subsidies to big business. Debt in terms of Business and the rich not paying taxes. In the UK case this debt is 117,000 Euros per head.

The beggar thy neighbour death spiral of funding business since the 80s is clear. Subsidy to build a factory. Subsidy to export. Tax breaks. It’s hard to think of a business that does not exist on grants and payments. When these subsidised businesses do make money they don’t pay tax. Indeed they leave themselves as indebted near bankrupt shells and salve extra cash overseas or off to shareholders and Senior Management.

Another reason the UK is vulnerable to Climate Change and Energy issues is that Privatised businesses such as transport, energy and water now are nothing  more than asset stripped shells. Extra reservoirs and capacity has been sold off. Any jolt or extra demand and we find they are only doing the minimum under Britain’s open door regulatory system. Indeed as with Network Rail or Thames Water the  companies are so bankrupt the state guarantees the loans for any new work – a cut of which instantly sorted to shareholders dividends and Senior Managers. Thus we have the worst of all worlds the taxpayer on the hook for Bns of debt from a company they sold and lots of others got rich off – Network Rail’s debt is 28 Bn.

Indeed another reason for the crippling low interest rates causing the continued impoverishment of the bottom 99% of society is to prevent these companies going going bust and the full extent of 30 years of privatisation short termism coming home to roost.

It won’t be easy when this debt nonsense unravels but delaying it is a corrupt form of Socialism where the state benefits a tiny fraction of the population. Technology and borrowing may have hidden it but median wages have been declining for 30 plus years. Most people are getting poorer and poorer regardless of what their house is supposedly worth. This is before they draw the miserable hollowed out pensions stolen by the subsidised City.

This is starting to come home to roost is that as debt has been transferred from business to Govt and Govt has just handed out money like sweets in the form of PFI (creating long term debt already crippling the health service). Whilst at the same time these businesses Govt subsidises are given laws to drive wages down. Meaning those who pay tax have less and less money to pay more and more state debt.

This is equally true of both main parties in Govt in the UK and much of Europe.

Socialism is working fine for the rich maybe the poor should try it. They have nothing to lose but their debt.

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