What's the deal with the New Green Deal?

The same old mistakes are made again today by those who pull the levers.

Britain is not heading for a new economic disaster; it has sustained one long-term national and personal debt crisis. One group, the Green New Deal Group, has been consistent with its critique: economic failure caused public debt to rise and this is where the crisis lies.

The same old mistakes are made again today by those who pull the levers. Unemployment figures are down but this is sustained by part-time or zero-hour contracts and underemployment. Tony Dolphin said in 2012 on these pages: "We know there are many reluctant part-time workers because the Office for National Statistics asks those who are working part-time if they would prefer to be working full-time and 1,418,000 are currently saying "yes" – the highest number since comparable records began in 1992 and an increase of 700,000 over the last four years.”

While the number of unemployed is reduced the amount of work being done doesn't rise. Jobs aren't being created quick enough, it's just more jobs have more people working them. That's not what we had in mind when criticising employment rates.

Another mistake is bank bonuses. In the days before the Big Bang (deregulation of the financial markets in 1986), back when bankers were more trusted than the police, the NHS, and the press, UK merchant banks paid bonuses of around 3-4 per cent of a salary, while some firms only gave Christmas hampers as thanks.

In 1997 the city bonus pool hit £1 billion for the first time. Ten years later: £9bn, 4,000 bonuses of which reached above £1m, a few hundred over £5m, and twenty-odd over £10m. Even after RBS was bailed out, post-Libor scandal, bankers were paid bonuses of £7bn.

And here's another kick in the teeth: according to the figures from the Office for National Statistics, banks and insurers delayed about £700m of bonuses so as not to pay the 50p top rate of income tax.

This is where better control of banks is needed. In 2008 the Green New Deal Group argued that, in the face of economic collapse, government should not revert to type, hoping the market would fix things, but actively intervene. In their second report in 2009, The Cuts Won't Work, the group warned of complacency around freezes to inter-bank lending and the rise of high city bonuses.

Cash injections to save the world, bailouts to save the banks – these are all vindicated in theory as in practice. Quantitative easing was not able to save the country from unemployment, low wages, and low investment because in the following years we had a government that were ideologically committed to austerity. But none the less creating more money and spending more to save later should appeal.

The Green New Deal would be funded through tackling tax evasion and avoidance, a programme of Green Quantitative Easing would generate jobs and economic activity, investment would be made through bailed out banks at sustainable rates of interest, and buying out PFI debt using Green QE money would ensure no more money is wasted through it.

But where further? A local Green New Deal could fund regional and community banks which in turn invests in small and medium enterprises and lends to local people at reasonable rates of interest, putting out of business payday lenders, home creditors, and loan sharks who suck money out of the real economy and profit from people's debt.

Giving this kind of boost to high streets and local communities would provide more jobs, more money in people's pockets, and stop high roads becoming a miserable mix of pawnbrokers, betting shops, and empty fronts.

As opposed to the political status quo, the Green New Deal Group called for a Keynesian solution of more spending to meet economic crisis head-on. It feels vindicated in its decision and continues the same for today. Seeing this through at a national and local would do a great deal to improve on what this government has done so much to ruin.

Photograph: Getty Images

Carl Packman is a writer, researcher and blogger. He is the author of the forthcoming book Loan Sharks to be released by Searching Finance. He has previously published in the Guardian, Tribune Magazine, The Philosopher's Magazine and the International Journal for Žižek Studies.
 

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The problems with ending encryption to fight terrorism

Forcing tech firms to create a "backdoor" to access messages would be a gift to cyber-hackers.

The UK has endured its worst terrorist atrocity since 7 July 2005 and the threat level has been raised to "critical" for the first time in a decade. Though election campaigning has been suspended, the debate over potential new powers has already begun.

Today's Sun reports that the Conservatives will seek to force technology companies to hand over encrypted messages to the police and security services. The new Technical Capability Notices were proposed by Amber Rudd following the Westminster terrorist attack and a month-long consultation closed last week. A Tory minister told the Sun: "We will do this as soon as we can after the election, as long as we get back in. The level of threat clearly proves there is no more time to waste now. The social media companies have been laughing in our faces for too long."

Put that way, the plan sounds reasonable (orders would be approved by the home secretary and a senior judge). But there are irrefutable problems. Encryption means tech firms such as WhatsApp and Apple can't simply "hand over" suspect messages - they can't access them at all. The technology is designed precisely so that conversations are genuinely private (unless a suspect's device is obtained or hacked into). Were companies to create an encryption "backdoor", as the government proposes, they would also create new opportunities for criminals and cyberhackers (as in the case of the recent NHS attack).

Ian Levy, the technical director of the National Cyber Security, told the New Statesman's Will Dunn earlier this year: "Nobody in this organisation or our parent organisation will ever ask for a 'back door' in a large-scale encryption system, because it's dumb."

But there is a more profound problem: once created, a technology cannot be uninvented. Should large tech firms end encryption, terrorists will merely turn to other, lesser-known platforms. The only means of barring UK citizens from using the service would be a Chinese-style "great firewall", cutting Britain off from the rest of the internet. In 2015, before entering the cabinet, Brexit Secretary David Davis warned of ending encryption: "Such a move would have had devastating consequences for all financial transactions and online commerce, not to mention the security of all personal data. Its consequences for the City do not bear thinking about."

Labour's manifesto pledged to "provide our security agencies with the resources and the powers they need to protect our country and keep us all safe." But added: "We will also ensure that such powers do not weaken our individual rights or civil liberties". The Liberal Democrats have vowed to "oppose Conservative attempts to undermine encryption."

But with a large Conservative majority inevitable, according to polls, ministers will be confident of winning parliamentary support for the plan. Only a rebellion led by Davis-esque liberals is likely to stop them.

George Eaton is political editor of the New Statesman.

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