Showing posts with label Leave. Show all posts
Showing posts with label Leave. Show all posts

Thursday, 4 April 2019

Pick a side - will you continue to press the button?



There is a big red button on your phone. If you don’t press it, nothing happens. That is how buttons work generally. But if you do press it, it might tell somebody else to kill someone. How often would you press the button?

So yet another attack has taken place by a hate-filled extremist on people going about their daily business. This time around it took place in New Zealand. A right-wing Australian with guns and hate massacred unarmed unsuspecting people going about their regular business. A few days later an attack on a tram in Utrecht appears to be people being shot by a suspected Muslim terrorist with guns and hate. Just this week we hear that devices have been placed on railway lines by Brexiters.

We can add these to the list of atrocities committed by many different individuals. Manchester concert bombings, the Pittsburgh synagogue attack, London Bridge, Finsbury Park. When you start to research these atrocities often a motive is given for the attack – Anti-Semitism or Racism or Right-wing Terror. I think it is a lot simpler than that.

Often when I write I compare events or opinions or arguments and look at them side by side and explore the differences. Lots has been written about the New Zealand attack – how it was out of the ordinary, how it has driven an immediate response in New Zealand, profiles of the attacker asking what went wrong to bring him here, how the attack was carried out.

What saddens me is how obviously similar it is to all of the other attacks mentioned above. And that we will face many more of these. The script, the background story always seems to be the same. Lone individual, possibly some contact with hate groups, obtained weaponry and attacked at a time / in a way designed to create maximum outrage and fear.

What brings these individuals or small groups to this point? A point where they decide that the only way to make an impact to further their views, to achieve success is to go out and kill people they have never met and have no connection to, on the basis of whatever motivation they wish to give? Some of these attackers have left their thoughts – either in the form of videos or manifestos or even Facebook posts. So we can state their ideologies and way of thinking with a bit of certainty.

Firstly, they all seem to believe in absolute groups. Us and them. Whoever the “them” are doesn’t seem to matter in the grand scheme of things. They could be Muslims, Immigrants, Jews, Non-Muslims. It is still very fresh in the memory that Jo Cox was murdered by one of these attackers. Her “them”? She was a remainer. Just imagine that. The line that separated people who should live and have rights and people it was acceptable to kill was which way they voted in a referendum.
These lines don’t exist. These separating lines that split us into definite groups are not real. But we do it all the time. We align ourselves to others of the same religion, the same political party, family, country, football team and use that alignment to see Them as somehow different. We have far more in common with other people, no matter how little we think we do, than we have that is different.

Secondly, They have either done some unfairness or injustice to us, or are going to and we should do something about it – because nobody else is. This is the deep-rooted belief that the threat / unfairness is obvious, that everybody sees it, but that the authorities are ignoring it OR are powerless OR weak. This is either that immigrants are taking over our country, that Jews are pulling the strings to control government, trying to steal Brexit from us, invading our countries to steal our oil / power / influence. Whatever It is that They have done or will do, It is obvious from the messages / communications / inputs the attacker sees. They are all equally guilty of It too, because they are one group solely defined by one characteristic.

Again, we have to call bullshit on this thinking. And we see it all the time. Not all Muslims are terrorists or paedophiles who trade young girls. Not all Westerners supported various invasions. Not all immigrants are trying to steal your culture and your land. What I find really scary is that often when talking to otherwise sensible people they have been conned into looking at one example and extrapolating that risk across the whole They, and unless you can refute that single example that is proof They are all like that. We have to be better than that.

Thirdly, that they are acting on behalf of the rest of the Us. They are doing it in Our name or Their name. Depending on which side of their invented line you sit. This might be the act that wakes Us up, shows Us what to do, and scares Them into stopping / giving up. It will ignite / unite Us in taking action – because we are all just waiting.

How do they get to this point? Where do these ideas come from? That they have support for their actions, some sort of reward awaits them? They’ll be seen as some sort of hero? Whilst their worldviews may be coloured by the mainstream media, or religion, or groups, and this is where their “motivation” comes from, this belief that they are supported and believed seems in almost all cases to come from social media interactions. This seems to be the only place they could possibly take the belief that there is a legion of support for what they are about to do.

There is a big red button on your phone. If you don’t press it, nothing happens. But if you do press it, it might tell somebody else to kill someone. How often would you press the button?

We know from the writings of Anders Brevik he took most of his motivation and ideas from other people writing on forums and social media. ISIS regularly use facebook, twitter and youtube to get their message across because they know these lone wolf individuals take succour from it. During the recent attack in New Zealand the perpetrator live streamed it on Facebook. Over and over these vile individuals take their comfort, their support, their motivation from posts of other people on social media.

It’s also important to remember – the people who do this – they think differently from us. For the vast majority of us the idea of getting so angry that we decide to attack, injure and kill people is abhorrent. More so in cold blood. But none of them are picked up in advance. They suddenly follow up on their decision making. Often family and friends are aware of their views – but not that they are dangerous or genuinely considering this action. Until somebody is dead. I am not a psychologist – I have no training to say who will behave like this. Maybe we are all capable. But I don’t know which of my friends, family, readers of this blog, and colleagues are capable of turning. Neither do you.

There is a big red button on your phone. If you don’t press it, nothing happens. But if you do press it, it might tell somebody else to kill someone. How often would you press the button?

We have to choose a side. Are we the person who presses this button or not? This week as an example videos emerged of British Army soldiers shooting as an image of Jeremy Corbyn. If you support this – can you be certain that won’t be seen as a message to someone to take out his old service revolver and do it? After all Darren Osborne (who attacked Finsbury Park) was looking for a way to kill Jeremy Corbyn. That post decrying Tony Blair as a war criminal who got away with it? Posting videos calling remain supporting MPs traitors? Linking Leave supporting MPs to violent racism? Do you really know the impact of the language of hate on people around you? Perhaps you do. Strangely I reckon the families and friends of the people mentioned as carrying out these attacks felt comfortable sharing hate, and bile, and anger. I wonder if they do now.

There is a big red button on your phone. If you don’t press it, nothing happens. But if you do press it, it might tell somebody else to kill someone. How often would you press the button?



Thursday, 17 January 2019

The importance of appearing in control and how not to do it


In the space of less than 24 hours we had 2 of the most unique, important and interesting votes that the House of Commons will ever give us. Most would argue that we have had enough drama of the sort we have seen to last us for a long time. Unfortunately, those votes and the debates and issues supporting them appear to really only be at the end of the beginning, not even close to the beginning of the end. The ongoing saga of Brexit has now dragged on for over two and a half years since the referendum itself. Legally speaking, as it stands, we only have around 10 weeks left to organise a withdrawal deal, or we crash out with No Deal.

            Nobody knows how this is going to turn out. Nobody knows, with absolute certainty, what is the best result for the UK and the EU. We can all choose to believe whichever experts, anti-experts or shaman most suits our views. Generally, that is what the overwhelming majority of use have been doing. My view, and one I want to explain, is that the biggest gap we have faced throughout the process has been the gap in genuine leadership – none more so than from the party leaders themselves.

            There are hundreds of lists of leadership qualities, and books have been written about the subject since we started recording history. I want to focus on a few of those qualities that appear across a wide range of them – it’s impossible to find some that appear in all of them. The most regularly repeating qualities for effective achieving leaders appear to be:

  • ·      Integrity – not just being honest, but being seen to be honest, and doing the right thing even when you can get away with doing the wrong thing
  • ·      Courage – in making decisions, even unpopular ones, with limited information, and willing to address difficult points
  • ·      Impartiality and fairness – not pandering to special or favourite causes, identifying the fairest outcome for everyone from a situation
  • ·      Good communication – in both directions, able to explain their message so others get it with clarity and conviction, and able to listen to others and hear their points
  • ·      Flexibility and responsiveness – able to alter not only their plans and direction, but their style to achieve their outcome, and able to listen to other people’s ideas and use the best one, not simply their own

If we start by looking at how the negotiations process has been operated by Theresa May, and the strategy taken to those negotiations, it becomes very clear very quickly why she is not the right leader for the country. And most certainly not at this point in our history. Look at the strategy she has taken and it crumbles very quickly.

First of all, from the outset the decisions and approach have been her decisions and approach. She ignored every opportunity to reach out to other parties. She refused to listen to ideas from anyone outside her immediate circle. Throughout her career there are countless examples that point to her need to be completely in control. It is a unifying thread that runs like iron through it. How can you be impartial and fair if you are always right? Where is the space for responding to other ideas if you wont even hear them? This political change was the biggest we faced for at least 40 years – and arguably since the Second World War. Why not put in place a specialist commission? A government of unity? Citizen’s panels? No – Theresa knows what is best. Much better for her to go away, decide and then come and tell US what is right.

Of course she realised very early on in the process that in order for her to get away with that as Prime Minister, she needed to have as much personal power and mandate as possible. So whilst we had a backdrop of a clock running down, she called a General Election. Not for the good of the country, not for the good of the negotiations, not even for the good of her party. For her own benefit. And all after explicitly ruling out the idea. Because she believed she would win a landslide. Where is the integrity in that decision? Where is the impartiality and fairness of putting her wants in front of our country’s needs?

During the election itself, she showed herself again and again to have no communication skills. Strong and stable can not be the answer to every question. I imagine during that period if asked her how she took her coffee she would answer “strong and stable”. She ran scared of taking part in debates – sending other people to do them. Because she has all the communication skills and warmth of Buck Rogers friend Twiki, but without the warmth. Or communication skills. Where is the courage in being afraid to stand up without all of your lines safely locked down – taking no risks.

Having refused to talk to other parties, setting out her way of doing it as the only way, and having been embarrassed in a general election because she didn’t realise that the public didn’t want one, she then found herself weakened. The hung parliament that she caused meant that she then had to sell out some of her power to the DUP. This was at the cost of £1bn+ and additional red-lines. She used public money to protect her own position. She reduced her flexibility further.

Whilst all this carried on, Brexit Secretaries and other ministers led a constant stream out of her government because she wouldn’t listen to anyone else, and she kept coming back to the UK having given away more and more negotiating strength. Because she was right, and how dare anybody question or challenge her. She had to survive – she was the only one who was right. The single most important point, throughout this process, has been the survival of Theresa May. On average we have lost a government minister every month since she became Prime Minister. Nobody knew what the current deal was, until she deigned to tell us. No communication, no flexibility.

Where did this lead us? Her own party realised this couldn’t continue – and she survived a confident vote there. 117 of her own MPs – one third of her parliamentary party – wanted her to go. Did this change her approach or make her consider her position? Not for a minute. She not only led her government to be in contempt of parliament (for the first time ever), but she ran down the clock by delaying the vote on her deal. Not for any purpose other than she didn’t want to hear the truth – that she had gotten it completely wrong but couldn’t bear to hear it. She suffered the biggest governmental defeat in history. Only one third of parliament supported her deal – not even the £1bn bung could persuade the DUP. Did this make her consider her position? Not for a moment.

On the back of this she faced a vote of no-confidence in parliament. And I want to return to that point in part 2 of this blog – because we also need to consider the leadership of Jeremy Corbyn in doing that.


Friday, 20 January 2017

Step right up, now everyone’s a winner, bargains galore.

Thank goodness for Donald Trump and Boris Johnson. There was I, worried that leaving the European Union might in some way be bad for our economy, workers’ rights and public sector, when they come along and show me that everything is going to be OK. Of course it is not just the US. Apparently, countries are queueing up to do trade deals with us. We now thankfully have some greater clarity on what Theresa May plans for her brexit strategy. So, what can we take from her announcement yesterday? And how bright is the future looking for us? Can we get ready for a massive influx of trade we don’t currently have? Is the prospect of a Global Britain better than the prospect of a “Shared Britain” (now removed) or a “Red, White and Blue Brexit” (now removed) or is it just another meaningless slogan?
Really, we need to understand from the speech what we are potentially losing compared to what we might gain. That is the only way we can judge whether we are looking at a net positive or a net negative. This was the most important speech that the Prime Minister has given since we voted for her to be our leader. Only joking of course, we live in a parliamentary democracy where elected representatives are chosen and entrusted to make our decisions for us. Well apart from THAT decision obviously. So, the most important speech since her party voted for her to be party leader and therefore Prime Minister. Only joking, there was no vote for her. So, the most important speech she has given since 35,000 in the borough of Maidenhead voted for her (that’s right Americans, you think you have problems).
I am going to focus purely on the aspects relating to trade and the economy. There was actually some good stuff in there, relating to how the process will run, and also massively important areas around immigration and nationality, borders and governance. But that will have to be part of another blog. So what did we learn? Well the key points were these:
·         All existing rules and regulations of the EU will become British Law and workers’ rights will be protected, then will “keep pace with the changing Labour Market”
·         We will leave the single market, and the customs union then “pursue a bold and ambitious Free Trade Agreement” with the EU
·         We might pay to be a part of “specific European programmes”
·         If we don’t get the deal we want with the EU, we will trade with them without a trade agreement
·         We will seek out new trade deals with other partners that we don’t currently have in place

Keeping existing rules and regulations, and workers protections

                So, depending on your point of view, keeping existing safety and consumer laws is a good thing or a bad thing. It will mean that we can continue to export to mainland Europe because our goods and services will be comparable. But it might also mean that we are held to a higher level of regulation than say US or Chinese manufacturers. Therefore, this could make our products uncompetitive on a global market. So this really depends on whether we get a trade agreement with the EU.
                More worryingly, is the specific language used around workers’ rights. This should be a massive big warning sign to everybody who is employed in the UK. Over the last 6 years the Tories (and their coalition partners) have overseen the stripping away of workers’ rights, and have resisted every opportunity to improve them. For example, even at the height of the furore over zero hours contracts, the government did nothing. Coupled with that our rights to strike have been eroded, weakening our bargaining power with companies. And senior members of the government are openly talking about banning the use of strikes across industries.
                Mrs May could have said that workers’ rights would be improved upon, or strengthened. But the language is purposefully specific. “Keeping pace with the changing Labour Market”. Well, if we look at how the Labour market is changing, more people are being put in to roles where their employers can pretend they are self-employed; employers can give up any sort of responsibility through the “gig” economy; zero hours contracts will become more prevalent; trade unions will be downgraded and weakened at every turn; pensions agreements will no longer be stuck to by employers whilst taxpayers bail out pensions funds. Basically, if you are employed, then this is the start of a bonfire of what rights you currently have. If you are applauding this speech, you are either an employer yourself, or not paying attention. Perhaps somebody could remind me, when we voted for the UK to leave the European Union, where we also voted to give up our working rights to Sir Philip Green and Mike Ashley? I obviously ticked that box without realising.

Leaving the Single Market and Customs Union, getting a trade deal with Europe instead, paying for access

                It is probably worth, as a starting point, understanding what our trade deal within Europe currently means. Firstly, it is worth stating that it is probably the most comprehensive, invasive and wide-ranging multi-lateral trade agreement in the world. It includes everything from free trade (meaning we trade our goods free from tariffs being applied by other countries), customs union (meaning we all apply the same tariffs to goods coming from outside our deal), free movement (of services, capital and resource ie people) and a level of political union too. It covers almost every aspect of trade and commerce, industry and services, import and export. The effort to split ourselves out from it is on a scale unprecedented and untried. It is not simply rhetoric to say it is of the scale that countries leaving the USSR and Eastern-bloc felt during the early 90s.
                So we would be leaving, with great difficulty and cost a free-trading bloc of 450 million people in 27 states (once you take us out of the official figures). It has GDP of US$13tn (again once you take us away from the published figures). It is 41km away from us at the closest point. Those are the really key considerations in any trading deal we want to do: how many individual consumers are there, how wealthy is it, how far away is it, and what tariffs would we expect. It is worth also stating that given the depth and breadth of the negotiations that will be needed, this will (you would hope) require a great deal of considered and careful negotiation. We currently have no experience of trade negotiations, given that we haven’t had to for about 40 years. It seems a reasonable assumption that what experience we can muster together will be focussed on this deal. Two years of effort to LEAVE that free trade deal.
                Of course, it is possible that we could end up with an even better trade deal. However, it is highly improbably. By its very nature, if we are choosing to say to a trading bloc that have grown together “we want to trade with you, but don’t wish to pay in to your structural costs” then it is only reasonable to assume we will get a worse deal than full membership. Even Theresa May accepts that. Hence why the Prime Minister and others have been warming us up to the idea that we will still have to pay something to continue to trade freely in certain markets. I think it is fair to assume this will include the Motor industry (if not, then what the hell have we promised Nissan?) and financial services (given it is our biggest single industry). Of course, that gives us the question of what will the cost be? How much will we have to pay for access? Not only that, does it mean any industry which isn’t beloved of the Tories (Steel, manufacturing, non-financial services) should now expect tariffs to start to affect their business. So there we have it, a deal where we still pay in (when it suits the Tories) and everybody else has their business negatively impacted.
                Not only that, but what if we start imposing our own tariffs on European goods? Well, that will lead to massive instantaneous inflation, whilst at the same time our economy is getting worse. We had this in the 1970s – and the term which was coined was stagflation – a stagnant economy whilst prices rise. It was a horrific time. If you are too young to remember it be grateful, then ask somebody who was around how it felt.

No deal is better than a bad deal, trade deals with other parties

                Of course, we could choose to have no trade deal at all with Europe. However, just the most cursory glance at this shows how completely stupid and damaging this would be. This would mean that we would immediately start trading with ALL of the European Union at WTO Tariff rates. In effect every single item that we export to Europe would immediately be less competitive, and therefore we would either have to sell less OR sell them more cheaply. The idea that no deal is better than a bad deal is complete hogwash – and everybody knows it. God even to export Oxygen to the EU we would have to pay a tariff of 5% - and they breath the bloody stuff (yes, I know, thanks). So this idea that we will go with No Deal is never going to happen. Besides which, in all honesty both parties want to get a deal. It is in their interest as well. It is entirely a PM trying to sound tough for the UKIP-leaning voters in her own party. It is simply within our interest to achieve some deal with Europe (popn 450m, GDP US$13tn, dist 40km) – and it is theirs to do a deal with us (popn 65m, GDP US$3tn, dist 40km).
                What about other deals? We are told by Boris Johnson that countries are “queueing up” to do a trade deal with us. Well, the first consideration is – why aren’t we trading with them currently? If these countries are so desperate to get a trade deal with us, why is that? Well, we already do trade with many of them. But it is at a lower level than perhaps we could. Therefore, any belief that this will lead to a massive influx of NEW trade is again erroneous. What it will do is make trade easier and therefore give some lift to our global trade levels. It might also (if we remove import tariffs) lead to consumers paying less for certain goods. It is way beyond me to be able to state with any certainty what scale the impact would be. But it would need to be very high indeed to offset any major losses of trade with the EU. I am going to leave the US to one side for a moment, but still, let’s pick out some of the options which do look like “live picks” ie countries that are talking about trading with us:
Country
Population
Size of economy
Distance
Comments
EU
450m
US$13.1tn
41km

Iceland
0.3m
US$0.016tn
1,894km

India
1,300m
US$8.72tn
7,194km

New Zealand
4.7m
US$0.174tn
18,500km

Australia
24m
US$1.2tn
17,000km

Canada
36m
US$1.5tn
5,700km

Ghana
27m
US$0.121bn
4,800km

Mexico
120m
US$2.2tn
9,000km

South Korea
50m
US$1.4tn
9,000km

Total
1,562m
US$15.3tn
9,136km average


                So, if the worst happened and we stopped all trade with the EU (which no-one is suggesting, to replace it we would need to trade with these 8 separate economies to get a trading block of the same size. Ignoring the fact that on average that would mean sending goods 45 times further on average to sell them.
                To put it another way, our trade with the EU accounts for 45% of our exports. If we lost a quarter of that export trade – on our doorstep – we would need to boost our sales internationally to non-EU countries by 11%. Unfortunately, our trade with international neighbours is already at record levels for us. What else are we going to sell – at a competitive price after sending it an extra 9,100 km? The very desperately sad thing is, we are already a successful trading nation. Is it really possible that not being part of a customs union with the EU is going to boost our trading with every we currently trade with across the board by over 10% BEFORE the end of the current deal with the EU in 2 years’ time?
                Who is going to negotiate these trade deals? Everyone with experience or knowledge will be working on the EU deal? Or should we leave that to Boris “let’s joke about the Nazis” Johnson? Genuinely? Of course, we have the trade deal to look forward to with the US. After all, we have been promised a trade deal by the President-Elect, a man who never goes back on what he says. Well, he has already threatened to pull out of NAFTA (a free trade deal), and put 35% import tariffs on goods from China and Mexico – 2 of their biggest trading partners and very strong economies. If Donald Trump is looking to trade on those terms with others, why would we believe we would get anything more beneficial?

Everything’s rosy


                There is no hard evidence to say that is all impossible. It may well be that against all odds the government manage to deliver. But for that to happen we would need a massive turnaround in fortunes, in abilities, in industry, in trade patterns and in the views of our own government. At the same time we would need the EU to be kind to us in any future trade deal. Put quite simply, the potential risks are much greater than the opportunities at the moment. I would love to be wrong about this – and I am often wrong. But I see no analysis which suggests anything other than this stark conclusion – by leaving the single market we are throwing away access to a strong market on a really good deal for the possibility of access to less accessible markets, with less good deals. This can only be bad for our economy. 52.1% of people voted for Brexit. But how many voted for an almost certain worsening of our economy, job losses, rights and protection losses, uncertainty and a weaker economy?

Tuesday, 8 November 2016

Some Leave voters have every right to be angry. They just need to work out who with.

So quite an extraordinary act took place last week. 3 judges from the High Court in London made a decision on a technical point of law and sent the news and the political sphere into overdrive. This doesn't happen very often, but given the topic they were ruling on this was hardly surprising. They were passing judgement on a case brought by a group of private citizens against the UK Government on the specific legal steps the government must take to invoke Article 50 of the EU - that is to start the formal process of Brexit.

This has been jumped on, by members of the public and experienced politicians alike as an attempt to derail the democratic will of the UK - that we want to leave the EU. The majority have spoken, and here are a bunch of bremoaners trying to stop that from happening. Is that the case though? Our democracy that has been hard won and hard protected now under attack? Certainly during the Leave campaign much was made of our governance, rights and democracy tying back to the Magna Carta and being uninterrupted since then. Is someone trying to run roughshod over that?
I believe the answer is an unequivocal yes. Should Leavers be angry? For some of them, I think they have every right to be.

Lots of leavers voted that way for lots of different reasons. I think it is a real shame that so many have wanted to tar them all as racists. Some Leavers had decided, long before any cases were put forward that they wanted to Vote Leave. That is absolutely fine. It is a democracy. We don't get a right to limit the vote to only people who consider issues in the way that we do. It is the system we have. But over the course of the referendum campaign, there were really 4 key issues that were used to push the Leave vote. Firstly, to take back control of unchecked immigration. Secondly, to take back control of our laws and rulings. Third, that we would be able to create new and better trading relationships with a wider range of partners. Finally, that we could save money paid in to the EU and use this, for example, to give the NHS an extra £350 million a week. 

These 4 issues, when combined and brought together, spoke to the very heart of the issues a large group of people care about. It spoke to our national pride and national strength. Anyone arguing against this could easily be derided as not patriotic (I know this, because I took this claim fairly regularly). But I can see the emotional flow of that argument. These claims were pushed very strongly, not just by the official campaign, but by UKIP and the majority of the British press too. 

It's quite easy to see, when someone is faced with this level of emotional argument, and see a set of factors that are so clearly wrong and unjust, that they expect everyone else to see it too. I actually wonder why there wasn't more aggression and violence. But also, if you have been given this story, you would assume that once through the referendum, this horrible situation would be remedied quickly. No more EU, no more money paid, no more immigration, control back in your hands.

Unfortunately, they have been both badly let down, and badly lied to. Firstly, David Cameron has let down not only Leavers but everybody in the country. This referendum was only ever meant to kill off UKIP. There was never any intention within government that Remain would actually lose. For this reason, there was never any clarity or honesty as to what would happen if they did. The government didn't even make contingency plans for that outcome. Just imagine that, a government not planning for a possible outcome of a binary referendum. Leave was never on the cards. Why else do you think the PM immediately resigned?

The other effect of this is that there was never any clarity given on how we would or could leave and what leaving would free us from. Had government departments been allowed to work on both outcomes then a clear option would have been given. Stay, and you get A. Leave and you get B. Unfortunately, this was taken away from the electorate. Instead, the Vote Leave campaign, UKIP and press barons were allowed to fill the void where official government guidance should have been. 

A really good example of this is shown by the reaction to the court case last week. The legislation which allowed the referendum was quite clear that it was advisory. Any decision was always going to be subject to British laws and British government - in the shape of the houses of parliament. But if you have been told for three months - you, personally - that you were taking back control, wouldn't you be shocked to now hear that? I would be. 

But this belief that people were given, came quite clearly from UKIP, Vote Leave and the press. It is therefore not at all surprising that all of those bodies have immediately come out and attacked the judges and the law of this country. Not because they ever believed it. But because the alternative is that this raw emotion they have unleashed turns on them to hold them to account for selling them a fairytale. 

Indeed, the judges had not made any ruling on whether we could or couldn't or even should or shouldn't leave the EU. They were purely ruling to say that British Law must be followed. However, social media and the mainstream media were awash with this attempt to stop Brexit by these judges. Never mind the fact that reading of it is completely untrue - UKIP, The Daily Mail, The Express all presented it as an attempt BY THE JUDGES to stop Brexit. In fact, in ever more dangerous behaviour Nigel Farage has called on people to march on the Supreme Court. Because nothing says respect for the rule of law like attempting to intimidate judges. 

Of course, this is just one example where a lack of planning and honesty is going to cause problems. There was never any decision or agreement on whether we would have any future relationship with Europe at all. This was not covered in the referendum. We were given a binary choice between the status quo and whatever the Leave campaign wanted to sell us. So it is far from certain whether our final leaving deal will include: Trade tariffs, freedom of movement, single market access, accepting some European rules. But the Leave camp have already sold all of these things. Given the level of emotion they have plumbed and brought to the surface, this could lead to even greater anger in the future. 

If you voted or now want to Leave, I would not expect any other outcome. But it is time to look at what you have been sold, and whether you actually want it. And if you do, what should it look like? The problem is that other Leavers might have a different view from you. There is no way you can all be kept happy. So, you have every right to be angry. But be angry with David Cameron for making a mess of such an important democratic process. Be angry with those who have lied to you. But don't be angry with the courts. Once this is all over, it is likely they will be the only ones left to us. Do you really want to damage them to the point that they can no longer hold the government to account?

Tuesday, 14 June 2016

WARNING! This post contains SPOILERS about what happens after a leave vote

              Or, then again it might not. I say that because nobody actually knows what will happen to the economy if we leave. Nobody can. David Cameron and George Osborne don't. Nigel Farage and Boris Johnson don't either. Nor do Economists for Brexit, the IFS, the WTO or The Economist magazine. Neither do I. But given that the economy is one of the main areas of discussion in the EU referendum debate we can't possibly ignore it. So, before you read any further, there is a massive health warning - any projections which are made OR referenced might be completely wrong. This has been part of the issue that has been turning so many people off from this referendum. The repetition that as soon as one side trot out an indisputable fact, the other side dispute it with their own fact.
              So what can we say about the economy and the impact of leave or remain? Well a really good place to start is to understand some basic ideas which are directly relevant to the question at hand. Let's set out then what the EU is (from a purely economic point of view), where it came from (again from an economic point of view) and what are trade deals, tariffs and the regulations that are often discussed by various commentators on both sides. This might take a while and bore the shit out of you - so if you want to go and get a drink now is the time to do it (I'm certainly having one). This is the explanation nobody else will do - because it is incredibly long and boring. But I think worth getting to the end of. One thing I will try NOT to do is to address any claims or counter claims - there is enough of that round already.
               The EU was originally set up very much as a trading block. The underlying theory of many politicians at the time was simple (and actually pretty true) - that most wars, when you get down to it, are really about access to resources. Those resources might be money, land, water, access or a million others. Given that Europe had spent the best part of a thousand plus years at war, then wouldn't it be better to settle disputes over a negotiation table instead of a bayonet? Therefore a "trading block" was set up relating to Coal and Steel - at the time the 2 key resources you needed to fight a war and also the 2 resources you would be likely to fight over. To avoid using an EU reference, you can find all of that information on wikipedia ( https://en.wikipedia.org/wiki/History_of_the_European_Union ). How would that trading block work? Well, they would work together to decide how much to produce, who to sell it to, at what price and what would be the rules for producing it. The last point is really important. They would also allow the countries in the block to sell to each other without "tariffs" - that is the governments wouldn't add costs to goods coming in from the other countries. To make this fair and achievable, what was very important to the countries involved was that the produce was created in the same way. So, same workers rights, same standards of outputs etc. This was so that no individual country could make more profit by undercutting the others unfairly.
               These are the regulations that are often held up by leave as blockers to British dominance of markets. These hated "regulations" that are thrown around as such a terrible thing include measures to ensure that:

  1. What you are buying is actually what you are trying to buy
  2. You are not paying too much for products and services
  3. When you buy something it wont kill or injure you and your family
  4. The people producing goods are not being abused / have employment protections
  5. Producing these goods doesn't damage the environment more than it has to
  6. There is a standard level of quality for goods that you buy
  7. No single organisation or country can run the entire market and abuse a leading market position.
              As a general rule of thumb then, regulations are good for consumers, good for the market, good for workers and costly for businesses, and if it is costly for businesses that increases prices for consumers too. So whenever you hear the term "regulations" - run through that as a checklist and decide if they are things you want or not. Of course part of the problem identified by some on the Leave side is that these regulations attach to all companies whether they trade across Europe of not. I personally quite like the idea of regulations to stop all companies abusing workers and damaging the environment - irrespective of where they trade.
              In very basic economic terms then, the EU has now become a single market where lots of products and services are sold across Europe - with common regulations, but without tariffs being added if they come from within the EU. Tariffs go hand in hand with international trade - so let's look at what they are. Say your country and it's economy is very reliant on the production of "thingies" as an example. You as a government want to make sure that the "thingie" industry is protected. Therefore, what you do is add an import tariff to any "thingies"made overseas being imported - with the aim of making foreign "thingies" more expensive. It is called protectionism. It has existed since the start of international trade. Why wouldn't you do it?
              There are a couple of big problems with protectionism. The first one is quite simple - that protectionism breeds protectionism. Therefore whilst we are trying to protect our engineering industry, France is trying to protect their wine industry. Italy and Germany are trying to protect their car industries. And it goes on, and on, and on. What that means is that we all pay more for our products and services, but also because people don't want to pay higher prices they don't buy, so economies are held back. Secondly, protectionism favours rich countries. After all, if you have more to protect and trade, then you can afford to be tough to other countries with your tariffs ( https://en.wikipedia.org/wiki/Protectionism ). So as part of a global world we screw other people, our own consumers and ultimately our own economy. Again, as a rule of thumb then, tariffs are bad for consumers, bad for the overall economy but potentially good for individual companies in an economy.
                There are other ways of course as well as tariffs that countries can protect their own industries. Nationalised companies obviously have government support so can (generally) borrow money more cheaply. Or Labour costs can be controlled by government to help companies. Or grants, or a variety of other measures and methods that can be used. For example, the recent furore over the death of Tata Steel in the UK is often blamed on cheap imports of Chinese Steel "flooding the market". There is a huge lack of transparency around why the EU didn't stop this. The arguments (depending on which side you are on) are that the EU rules stopped the UK from intervening to help our steel industry OR the EU tried to block the chinese steel (by increasing tariffs) and the UK government stopped them from doing that. Whilst it is unclear what happened in this instance, the EU rules on this are quite clear - we could have increased tariffs at a European level to counter the protectionist measures of the Chinese. What is worth considering is whether the whole EU standing up to China would have more impact than the UK standing up to them on it's own.
             So, a single market, with common regulations and no tariffs, across a regional trading block, with an end consumer base of 500 million people. That is great because it gives companies (particularly international companies that trade across borders) certainty. Set up in Britain and access that market. Sounds pretty sweet. The main problem raised though is that in order to access that market we have to be (currently) a member of the EU. That in itself comes with a few costs. Firstly, the cost of complying with regulations as discussed above. Secondly, we have to pay to be a member of the EU. This is not a small amount of money, and the budget is set in Europe - we don't decide ourselves how much to pay. After rebate (which we do control) we pay £14 billion a year to the EU.                 That sounds like we might just be better off paying the tariffs in the first place. To put it into perspective - that is out of total UK government expenditure of £772 billion. Our payments to the EU (before looking at what they give us back in other ways) equate to 0.5% of the cost of government ( https://en.wikipedia.org/wiki/Government_spending_in_the_United_Kingdom ). So less than half a penny in every pound paid in tax goes to the EU. Finally, there is a cost of being part of the EU when we try to trade with non-EU countries. Because we are members when we trade with other countries without a trade deal the EU makes us apply tariffs. This is why the EU is currently trying to agree trade deals with a range of countries - Canada, the US, China as examples. However, overall tariffs are coming down across the world - in some cases slowly, but in other cases more quickly.
              There do seem to be some other major costs too economically. One of the obvious key ones is that if you are running a business in the UK then because of the close integration of the markets you are potentially not just competing with the business next door - but also the business in Paris, Madrid and Berlin. Is this a bad thing or a good thing? Well, first of all it means that the businesses in Europe are also competing with you - you can enter and sell to their local customers. Competition should also (according to prevailing economic theory) lead to better prices for consumers and a more efficient market, innovation and better products and services. The impact of this will depend on your business - common sense would suggest it is much easier to sell "knowledge" services over a phone line or internet connection. It might be much harder to sell fresh cream cakes.
            Finally then, there is also the concern over free movement of Labour - one of the central tenets of the European model of tariffs and regulations. Now, I have already written a blog about immigration generally ( http://unexpectedsocialist.blogspot.co.uk/2016/06/if-immigration-is-your-answer-someone.html ) and I don't want to revisit a lot of those points. But being part of Europe also requires us to allow workers to seek employment in any other part of the EU without barriers to that. Is this a cost to our economy? At a very basic level it would seem intuitive that having a greater Labour pool would help companies make money. They can drive down wages and salaries by hiring people from lower paid countries to work for them. This could therefore be good for companies (and earn more money for an economy) but bad for employees. It could also transfer funds from wealthier economies to poorer economies - by individuals remitting wages back to their home country. At the same time though, we have more individuals in the country spending their money here, paying taxes here and generally because they are of working age using less public services (remember, we are only talking about working migrants). Unfortunately, I do need to refer to a study here ( http://cep.lse.ac.uk/pubs/download/brexit05.pdf ) that shows that immigrants have NOT reduced wages for the UK population. It is simply a not true assertion. BUT TAKE THAT WITH A PINCH OF SALT.
           Economically then, what is the EU? Well a single trading block that increased potential customers but also potential rivals. A law making body that creates a lot of regulations that apply to all companies irrespective of whether they trade internationally. A body that tries to reduce protectionism and tariffs for the good of the global economy, not just ours. A bloc that negotiates on our behalf with other large economies that sometimes doesn't get the results that we would want. A larger, more competitive market that companies either thrive in or fail in. And one where the free flow of Labour allows people to work across a different range of countries depending on their skills, abilities and needs. This of course sounds rosy, but then again I am for remaining in. The problem is that whether we vote to stay in or vote to leave we are picking winners and losers. Some businesses will benefit from staying in. Some will benefit from losing. What we have to do is decide is whether getting rid of or replacing the things above will benefit US as individuals / companies AND what will be the impact on the overall economy. 

Sunday, 5 June 2016

If Immigration is your answer, someone has given you the wrong question

                Well, there are only 3 weeks left (ish) until probably the biggest vote any of us able to vote will take for the next 50 years. The EU referendum. As a topic, for a lot of people the single biggest turn off since the first time they realised that their parents had sex. The reason for that disengagement is varied, and consists of several strands according to various insights and polls produced for our delectation. For some people it is a lack of hard facts, for others it is the language and behaviour of both sides of the argument – spurious figures, absolute certainties shared, fears mongered. There is also some concern over the topics that the debate seems to now centre on – immigration, the economy and control / democracy.
                Now this is only a little blog, so I am going to focus in on just one of these areas – and the one that still a lot of people feel uncomfortable talking about – immigration. It is probably the most pertinent and divisive of the areas. After all, where were all these democracy warriors when the referendum on proportional representation was happening? Probably best to set a few ground rules for myself though. Firstly, talking about immigration, and the volumes of immigration, and the process for managing immigration is NOT racist. Some views might be, but the subject itself isn’t. It worries a lot of people, and so is well worthy of consideration. Secondly, in any discussion about remain or leave there are a limited number of hard facts. There is only evidence and expectation, assessment and opinion. But where possible I will try to bring in what facts there are.
                A lot of the arguments about immigration really focus on one thing – the sheer VOLUME of inwards migration of people from Europe and our ability to control it to suit our needs. Indeed the UKIP Leader Nigel Farage has gone so far as to claim that Britain “is in the grip of an immigration crisis” (http://www.bbc.co.uk/news/uk-england-surrey-34348834 ) and that we can’t do anything about it until we leave Europe – as they set our immigration policy. But we need to pick this apart in to chunks that we can consider, and see what stacks up.
                So, we should really look at whether immigration has increased to the UK firstly, and whether Britain is particularly special in this. Next we need to define what a crisis would be and whether what we are experiencing is one, and if we are, is it being caused by immigration. Finally, we should look at specifically the impact of Europe on that migration level, and whether leaving the EU would help.
                So, is immigration higher now than historically? Well, almost certainly. Various studies have been done on long term trends on migration. Just between 1960 and 2000 the growth in the number of people living outside of their birth country is 100 million. That is 100 million more migrants in just 40 years (http://www.jstor.org/stable/27645348?seq=1#page_scan_tab_contents ). Clearly, that is a huge amount. But is this particularly surprising? Simply factoring in advances in travel, our economies (and how we work) and the increase in the middle class, you would expect more people to be living, working and settling overseas. So it is not unfair to say that we are seeing more immigration now than before. But this is part of a global trend. The problem with trying to put barriers in place for inwards migration is that those same barriers then go up for outward migration too.
                Are we taking the brunt of this immigration (from a European perspective) in the UK? Certainly there has been an ongoing attempt by the media to create a “moral panic” about Eastern European flooding to the UK to either steal our low paid jobs or live off our benefits system (or from some people, confusingly, live off our benefits AND steal our jobs). Actually, when we look across Europe we are pretty much middle of the pack in how many immigrants we have living in our country. This graph is from 2009, but is a good indication:

( http://www.theguardian.com/news/datablog/2010/sep/07/immigration-europe-foreign-citizens ). So whilst the overall average level for the EU is 6.4%, for us it is 6.6%. Hardly evidence that we are an outlier in this case.
                Still, size isn’t everything. It is still possible this is a crisis. What should really decide that is the impact it has on the receiving country. So even though we are not receiving lots more immigrants than other countries it is how they are affecting the indigenous populations that can really have costs (and in some cases benefits). In fact the official Vote Leave campaign points out two areas in particular – the  NHS and schools ( http://www.voteleavetakecontrol.org/our_case ). But also in other areas people genuinely have concerns – availability of housing, access to jobs and the impact on our culture. All of these have been raised as problems of uncontrolled immigration.
                It is a quite simple supply / demand question. You have to do one of two things - either increase supply or reduce demand. "Get control of our borders" rhetoric is about a belief that you can reduce demand (but there are strong arguments it wouldn't have any impact). The alternative is to increase supply of all of these things.
1) The majority view of experts is that just in order to stand still in terms of housing we need to build 250,000 new homes each year. No government has achieved that since 1980. In fact, since the economic crisis in 2008 housebuilding has tanked (https://www.gov.uk/government/statistical-data-sets/live-tables-on-house-building table 211). And I am not suggesting we concrete over the green belt – there are £12 BILLION of empty homes in the North West alone (http://www.mancunianmatters.co.uk/content/070811937-housing-crisis-%C2%A312billion-worth-homes-lie-empty-across-north-west-according-report )
2) When the last coalition government had an opportunity to secure the NHS and pump extra money in, they instead pushed ahead with a costly top-down re-organisation. One which makes the NHS much more privatisation-ready. (http://www.bbc.co.uk/news/health-31145600 )
3) LAs are no longer allowed to open new schools where they are needed - these can only be opened at the mercy of the open access academy system. This is purely to break the link between those dangerous left wing county councils and school leadership.
4) LA funding and social services funding has been strangled on the back of an austerity drive which has ADDED to the national debt, not taken away from it.
5) We are currently told by the government that we have the lowest unemployment figures in a long time at 5.1% and holding (http://www.bbc.co.uk/news/business-36320028 ).
So really, this crisis is not one made from too much demand, but one created by too little supply. Quite simply, our governments have created this issue. And migrants are a handy scapegoat for us to blame. Of course, all of these things have to be paid for, and have a cost to the economy too. How can we do that?
Well, migrants are actually net CONTRIBUTORS to our economy (http://www.cityam.com/213058/eu-immigrants-contribute-463-second-uk-economy ) – in other words having migrants actually means we have more money to pay for services even after taking account of the cost of providing services and benefits to them. Where has this extra money gone? Over the period of tory-imposed austerity that has led to many of these cuts the government have managed to find the space to cut corporation tax to 18% - even though there is zero evidence base this brings more companies and employment. The real pressure on services has been created by the recent governments this country has had – none more so than the coalition and current governments. I don’t deny that there are crises in all of these areas – but the cause is much closer to home.
So, a fairly fact informed consideration of immigration (I hope) and we haven’t yet mentioned EU Brexit OR been racist (I REALLY hope). We should probably turn to one of those two topics now – Brexit. How much of our immigration comes from within the EU as part of freedom of movement rules? Again, trying to arm ourselves with the best facts available, the ONS reckons that EU migration makes up less than half of our inwards migration (https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/internationalmigration/bulletins/migrationstatisticsquarterlyreport/may2016 ). Not only that but MORE of the EU citizens coming here have definite jobs to go to than ever before (about 60%). So most of our migration comes from outside the EU, and those from within the EU come here with definite jobs. So if we could stop EU immigration we would only be stopping half of the inflow – and a half with a good track record of helping our economy.
Maybe that would be enough? Perhaps cutting immigration in half would allow our underfunded services to get back to an even keel over time, house building could pick up etc. Well, there are still a couple of major challenges with that suggestion.
The first is that a lot of those services (particularly the NHS) rely on European immigrants to fulfil their staffing requirements (http://www.theguardian.com/society/2014/jan/26/nhs-foreign-nationals-immigration-health-service ). A lot of other areas do too – construction being another. Not a great idea when you are trying to increase housebuilding.
The second problem is that leaving the EU does not guarantee that we would be able to refuse rules on freedom of movement if we wanted to trade with Europe. All of their other local trading partners who are NOT members of the EU have had this stipulation placed on them. It is almost certainly one that the EU would place on us too. So Brexit would not in any way guarantee us the ability to stop EU migrants, whilst at the same time carrying lots of other risks. Quite simply, Brexit do not know what would happen with free movement of Labour.
So, there you have it then. It is not racist to be worried about the crises in public services, in housing and in jobs. The problem is that you have been given the wrong cause of the problem by political parties and media alike. It is much easier for you to be told the problem is economic migrants (and by extension the EU). Actually, the problem has been our own leaders. So if you are still not sure which way to vote (and that will be many people given the way the campaigns have run) do think carefully. But do one thing right – don’t make your decision based on immigration. It is the wrong argument to be focussed on.