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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Commons Confidential: Dave's picnic with Dacre

Revenge is a dish best served cold from a wicker hamper.

Sulking David Cameron can’t forgive the Daily Mail editor, Paul Dacre, for his role in his downfall. The unrelenting hostility of the self-appointed voice of Middle England to the Remain cause felt pivotal to the defeat. So, what a glorious coincidence it was that they found themselves picnicking a couple of motors apart before England beat Scotland at Twickenham. My snout recalled Cameron studiously peering in the opposite direction. On Dacre’s face was the smile of an assassin. Revenge is a dish best served cold from a wicker hamper.

The good news is that since Jeremy Corbyn let Theresa May off the Budget hook at Prime Minister’s Questions, most of his MPs no longer hate him. The bad news is that many now openly express their pity. It is whispered that Corbyn’s office made it clear that he didn’t wish to sit next to Tony Blair at the unveiling of the Iraq and Afghanistan war memorial in London. His desire for distance was probably reciprocated, as Comrade Corbyn wanted Brigadier Blair to be charged with war crimes. Fighting old battles is easier than beating the Tories.

Brexit is a ticket to travel. The Independent Parliamentary Standards Authority is lifting its three-trip cap on funded journeys to Europe for MPs. The idea of paying for as many cross-Channel visits as a politician can enjoy reminds me of Denis MacShane. Under the old limits, he ended up in the clink for fiddling accounts to fund his Continental missionary work. If the new rule was applied retrospectively, perhaps the former Labour minister should be entitled to get his seat back and compensation?

The word in Ukip is that Paul Nuttall, OBE VC KG – the ridiculed former Premier League professional footballer and England 1966 World Cup winner – has cold feet after his Stoke mauling about standing in a by-election in Leigh (assuming that Andy Burnham is elected mayor of Greater Manchester in May). The electorate already knows his Walter Mitty act too well.

A senior Labour MP, who demanded anonymity, revealed that she had received a letter after Leicester’s Keith Vaz paid men to entertain him. Vaz had posed as Jim the washing machine man. Why, asked the complainant, wasn’t this second job listed in the register of members’ interests? She’s avoiding writing a reply.

Years ago, this column unearthed and ridiculed the early journalism of George Osborne, who must be the least qualified newspaper editor in history. The cabinet lackey Ben “Selwyn” Gummer’s feeble intervention in the Osborne debate has put him on our radar. We are now watching him and will be reporting back. My snouts are already unearthing interesting information.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution