#Oct20 Marching against Economics and Common Sense

The left once again have decided to show their lack of economic knowledge, (allegedly) 100,000 people marched on Saturday claiming to be the voice of the majority (despite over 20m people voting for deeper cuts than are currently happening).

Unfortunately for the marchers – and little do they know – they are being led by a different wealthy elite…

Want to know how many of them fit into the top 5% of earners?

 Bob Crow (RMT) – £79,564 in salary, £26,115 in pension contributions, £13,013 expenses

John Hannett (USDAW) – £81,742 salary, £16,389 pension contributions

Billy Hayes (CWU) – £83,530 salary, £14,190 pension contributions

Sally Hunt (UCU) – £63,743 salary, £7,612 pension contributions, £2705 car benefit (start of June 2006 to end of May 2007)

Paul Kenny (GMB) – £81,000 salary, £21,000 superannuation (pension contributions), £8,000 car

Dave Prentis (Unison) – £92,187 salary, £23,603 pension contributions, £11,646 expenses and car benefit

Derek Simpson (Unite-Amicus) – £62,673 salary, £16,156 pension contributions, £13,333 car allowance, £26,181 housing benefit

Mark Serwotka (PCS) – £82,094 salary, £26,104 pensions contributions, £2,245 additional housing cost allowance and additional housing cost supplement

Steve Sinnott (NUT) – £99,846 salary, £23,963 pension contributions

Tony Woodley (Unite-TGWU) – £59,333 salary, £9,552 pension contributions, car fuel £3,360

Matt Wrack (FBU) – £66,389 salary, £44,281 pension contributions, £5,134 car

 

The facts don’t match up with their rhetoric of #Oct20.

Public Spending is not being cut and ideologically slashed, it is actually rising:

 

Debt will rise by £605bn under the Tories more than under Labour, we are experiencing the stimulus spending that the left want, and it isn’t working.

Furthermore, many Labour party members, councillors, MPs and even their leader Ed Miliband took part in the march, conveniently ignoring not only their promise that they would not reverse the cuts but the fact that they actually called for more cuts than are currently happening.

 

When I engaged with some of the protestors on twitter it was clear that they had fallen foul of many of the myths spread by the left. I will address their concerns here:

1)      It is not greed to wish to keep money that you have worked for, it could however be deemed incredibly greedy to want to take money from people who have worked for it to fund things you want.

2)      Starbucks, Vodafone, and others do not owe us anything, they have paid all the tax they are legally required to. These companies provide millions of jobs with workers who pay income tax, pay millions in VAT and other taxes and are hugely beneficial to our economy. They engage in legal tax avoidance. If you have ever bought anything from duty free, or even chosen to buy a cheaper product then so have you. As tax avoidance is legal they do not owe us a penny.

3)      Fiscal Stimulii do not work, the fiscal multiplier is less than one. Government spending increases GDP by less than the spending itself.

‘The available empirical evidence does not support the idea that spending multipliers typically exceed one, and thus spending stimulus programs will likely raise GDP by less than the increase in government spending. Defence-spending multipliers exceeding one likely apply only at very high unemployment rates, and nondefense multipliers are probably smaller. However, there is empirical support for the proposition that tax rate reductions will increase real GDP.’

(Source)

 The lefts march was nothing but a self serving, ego massaging stunt, their policies of excessive spending and high regulation caused this crisis (which can trace its roots to the CRA from America), Government debt has thrown the Eurozone into a second crisis, directly caused by trying failed Keynesian bailouts in response to the initial crisis (which they caused). If their economic policies got us into this mess then there is no hope of the same policies getting us out.

It just goes to show, there is no such thing as left wing economics, there is economics and then there are lefties trying to prove that water runs up hills.

 

*We got the Union Bosses wage details here*

5 COMMENTS

  1. Still it is hugely hypocritical for the Union bosses to be taking pay rises, coming from the subs of their hard working members, at at time like this. Where is the solidarity, why don’t they take a pay cut and so lower their unions costs?

    The tax taken from companies like vodafone and starbucks is enormous, the VAT, the employers NI, the tax of their employers. Removing tax avoidance schemes (which is nearly impossible) would heavily hurt the UK economy as revenue gained is offset by the loss as companies have to taken on these huge new costs.

    Do you have any links to people ‘accepting’ the multiplier is more than one. The study was a long term look at economic history, these things do not go in and out of right and wrongness a few years after completion.

    Labour still would have deeper cuts than this government. Cuts have not been slower than planned, they haven’t happened, spending has risen

  2. OK, going through these:

    – It’s true, many union bosses are pretty well paid. But they didn’t make up the majority of the marchers, did they? I’d bet anything the vast majority of people marching there were *not* among the top 5% of earners.

    – On the tax avoidance point: yes, we all know that the schemes of Vodafone, Starbucks etc are legal. That’s what people are so angry about, because we don’t think they should be. Introducing some new measures to remove loopholes and raise the tax taken from such companies could considerably reduce the need for further cuts.

    – Your final point #3 is simply wrong. Note that the article you cite is out of date: it was written back in 2009, when many people were mistaken about austerity. As of 2012, with several more years of experience, the great majority of economists (including the IMF) accept that the multiplier effect is greater than one, so economic stimulus works.

    – As for ‘the cuts have been slower than planned’: well, good, although I’m not sure if those figures include cuts by local government. But we all know that the government has much deeper cuts coming down the pipeline, which at this point would be economically suicidal.

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