Presentation on theme: "Cut Inequality not Public Services Molly Scott Cato Reader in Green Economics, Cardiff School of Management Economics Speaker, Green Party of England &"— Presentation transcript:
Cut Inequality not Public Services Molly Scott Cato Reader in Green Economics, Cardiff School of Management Economics Speaker, Green Party of England & Wales
The Grand Larceny grand larceny n. the crime of theft of another's property (including money) over a certain value (for example, $500), as distinguished from petty (or petit) larceny in which the value is below the grand larceny limit.
The first film to expose the shocking truth behind the economic crisis of 2008. The global financial meltdown, at a cost of over $20 trillion, resulted in millions of people losing their homes and jobs. Through extensive research and interviews with major financial insiders, politicians and journalists, Inside Job traces the rise of a rogue industry and unveils the corrosive relationships which have corrupted politics, regulation and academia.
What Mervyn King Said Unemployment is up, businesses have closed, and the direct and indirect costs to the taxpayer have resulted in fiscal deficits in several countries of over 10% of GDP – the largest peacetime deficits ever. Of all the many ways of organising banking, the worst is the one we have today.
Projected borrowing(PSNB), 17 Dec. 2009
Projected borrowing(PSNB), 21 April 2010
97% of money is created as debt by banks: 95% of money transactions have no contact with real goods Allows people to make a claim on future value And what he didnt say
The Crises are the Same Crisis Sustainability requires equality Sustainability requires financial stability, because debt-free money forces economic growth Debt requires inequality, because of interest transferring money from poor to rich
Independent Commission on Banking? Sir John Vickers, former Chief Economist at BoE Clare Spottiswoode, NED of nuclear waste and oil company Martin Taylor, former CE of Barclays Bill Winters, former CEO at JP Morgan Martin Wolf, the FT
Independent Commission on higher education? John Browne, BP Michael Barber, McKinsey Diane Coyle, ING, EDF David Eastwood, VC of Birmingham University Julia King, VC of Aston University; Rolls Royce Rajay Naik, OU and Big Lottery Peter Sands, Standard Chartered
Privatisation of higher education Hefces funding for teaching will be cut to£700m; the current sum is £3.9bn. This would represent a 79% cut in the teaching grant. Costs of education shifted to students and staff Business determines the curriculum but does not pay the cost Time for some free universities?
The End of Civilisation No subsidies for arts and humanities Focus on STEM: science, technology, engineering and maths, plus languages No discussion of education as a social benefit
The Big Society
Never have so many crustacea died in such a msguided cause
1973 to 1985: the financial sector never earned more than 16% of domestic corporate profits 1986: 19% 1990s: 21 to 30%, higher than it had ever been in the post-war period In the noughties it reached 41 per cent Pay rose just as dramatically: from 1948 to 1983, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007. Simon Johnson, The Quiet Coup, The Atlantic magazine, May 2009
Shift the burden onto the wealthy £50bn. Extra from tackling tax avoidance (Finance for the Future) A 50% higher rate on incomes above £100,000 Raise the capital gains tax rate to the recipients highest income tax rate Introduce VAT and fuel duty on aviation
Green New Deal Create 1 million new jobs in energy efficiency, low carbon public transport and renewable energy Build our skills and engineering capacity for the economy of tomorrow; Reduce our dependence on expensive and dwindling oil and gas; Pensioners and families living in warm, efficient cheap to run homes; Cutting 80% of our carbon emissions by 2030
The planet doesnt do bailouts
A crisis also an opportunity Stabilised economy in dynamic equilibrium More equal economy and society Focus on well-being not on consumption
'When rulers take action to serve their own interests, Their people become rebellious Verse 75, Tao Te Ching
Find out more www.greeneconomist.org gaianeconomics.blogspot.com Green Economics: An Introduction to Theory, Policy and Practice (Earthscan, 2009) Environment and Economy (Routledge, 2011)