Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/669/11963

From The Socialist newspaper, 4 May 2011

Fast news

Smoke and mirrors

City of London fat cats saw their 2010-11 bonus pot shrink 8%, compared to a year earlier, to 6.7 billion. However the masters of the universe were handsomely compensated by an average 7% rise in their salaries. This inflation busting pay hike compares to an average of just 2% rise across the economy for mere mortals.

These financial swings and roundabouts make a mockery of the government's Project Merlin deal with the City which was meant to voluntarily deliver financial restraint from the fat cats. By continuing to stuff their pockets with wads of cash they add a further insult to ordinary workers, many of whom continue to suffer from employer-imposed pay cuts at the same time as tax increases and government cuts in public services.

Flat-lining economy

The latest figures from the Office for National Statistics showed that the UK economy continues to flat-line with zero growth over the last six months. Tory Chancellor George Osborne attempted to be upbeat about growth, despite the evidence that his multi-billion pound austerity programme of spending cuts was acting like a massive drag on the economy. As a spokesperson from the Institute for Public Policy Research think tank put it: "The UK has just come as close as it is possible to come to a recession without actually being in one."

Overdraft 1

Global capitalism has racked up a 3 trillion overdraft - the sum that the world's central banks pumped into the global economy to prevent a financial meltdown.

The 3 trillion figure (which includes a mere 200 billion, so far, from the Bank of England) represents a staggering 8% of the world economy. However, this massive stimulus appears to have had only a short-term effect. According to Fathom Consulting, who compiled the global 'quantitative easing' figure: "It remains unclear how much of the equity market rally has been 'genuine', rather than simply a 'mopping up' of that extraordinary injection of liquidity." Fathom warns: "As that stimulus is gradually withdrawn, further gains in equity markets will be harder to achieve."

Overdraft 2

Meanwhile, the US government will hit its $14.3 trillion borrowing limit by 16 May.

The reasons for the multi-trillion debt is government bailouts to the banks and big business, funding costly overseas wars, capitalist recession, and a decade of tax cuts for the wealthy and big corporations.

Meanwhile real wages actually fell by 8% during the last decade and median household income in the US fell from over $52,000 in 1999 to $49,777 in 2010.

Despite recently pushing huge spending cuts through the House of Representatives (with Democrat agreement), the Republicans are demanding deeper cuts in welfare and social services and yet more tax cuts for the rich.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 4 May 2011:


Socialist Party NHS campaign

NHS Cuts: Stop the Con-Dem wreckers

NHS: Stop the Connaught closure


Youth fight for jobs

Join the Jarrow march!


Socialist Party editorial

Cracks grow in Con-Dem coalition


Socialist Party feature

Cuts hit disabled people hard


Socialist Party news and analysis

Review: The monarchy - reserve weapon of the ruling class?

May Day in Kazakhstan marked by attacks on socialists

Coventry residents' victory over Academy land snatch

Fast news


Socialist Party workplace news

More teachers vote for pensions strike ballot

Rotherham teachers strike again to defend their union rep

National Shop Stewards Network


Socialist Party feature

Paris commune 1871: When workers "stormed heaven".


Already posted on the Socialist Party website

Osama Bin Laden - killed by US forces

Socialists elected to leading positions in Greenwich Unite

Solidarity action builds for BP/Vivergo Saltend workers


 

Home   |   The Socialist 4 May 2011   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Cuts:

triangleBradford campaign to save children's services launched

triangleSouth London health bosses' cover-up

triangleTotnes MP uses coffin controversy to distract from brutal NHS cuts

triangleUni market 'failure', two-year degrees - end cuts, scrap fees!

triangleLabour 'purge' furore really just democracy

Economy:

triangleAmber warning lights flash on British economy

trianglePowerful picture of the Port Talbot steel workers' struggle

triangleYoung people being strangled by debts

triangleNationalise to save jobs at BAE Systems

Tax:

triangleThe Socialist Inbox

triangleTrump's tax plan: Robin Hood in reverse

triangleThem & us

Global:

triangleA world in crisis, ripe for revolution

triangleCarbon dioxide hits 800,000-year high: end profit-driven pollution

News and socialist analysis

News and socialist analysis

13/12/17

Labour

Labour 'purge' furore really just democracy

13/12/17

Brexit

Brexit deal no solution to Tory rifts

13/12/17

Housing

Two in five 'right to buy' homes now for let

13/12/17

NHS

Save our NHS

13/12/17

Them & Us

Them & Us

13/12/17

Fees

Uni market 'failure', two-year degrees - end cuts, scrap fees!

13/12/17

Retail

Retail sector crunch: nationalise to save jobs

8/12/17

Government

Local government pay: fight for the 5% claim, fully funded

6/12/17

Labour

Corbyn's Labour can defeat Tories with socialist programme

6/12/17

NHS

Branson sues NHS: kick out the profiteers

6/12/17

Immigration

Royal wedding exposes them-and-us visa system

6/12/17

Banks

RBS to sack 1,000: nationalise the banks

6/12/17

Homelessness

Rough sleeping crisis: make homes, not arrests

6/12/17

Poverty

End Tory war on poor

6/12/17

Rail

Nationalise rail now

triangleMore News and socialist analysis articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle16 Dec Blairite council 'all ears' to rich property developers

triangle16 Dec Arriva bus drivers' action wins pay rise

triangle14 Dec Stop the rotten redevelopment plan, demand residents

triangle13 Dec Six months on - still no justice for Grenfell

triangle13 Dec Movement growing against fracking giant Ineos

triangle13 Dec Totnes MP uses coffin controversy to distract from brutal NHS cuts

triangle13 Dec Trump's incendiary Jerusalem statement reignites Israeli-Palestinian...

More ...

triangle18 Dec Leeds Socialist Party: Religion and Socialism

triangle19 Dec Bristol North Socialist Party: Christmas social

triangle21 Dec Wakefield Socialist Party: Socialists and the National Question

triangle6 Jan Socialist Party national women's meeting

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2