The Danes' counter-example

Additional stimulus hasn't caused bond yields to rise in Denmark. They're in the EU and have their o

Denmark's new three-party coalition government has announced that the primary aim of its economic policy is to secure a balance between revenues and spending and create growth by bringing forward public investment. The new Danish prime minister, Helle Thorning-Schmidt, who is Neil Kinnock's daughter-in-law, unveiled her coalition cabinet on Monday and indicated that her government would take a radically different approach from the austerity measures being adopted by other European countries. The new Danish government apparently intends to spend ten billion Danish kroner to upgrade roads, railways and bicycle paths. The stimulus agenda also includes plans to provide temporary tax credits for companies that invest in R&D and machineries along with new technologies. It said it also aimed to carry out a tax reform that would significantly reduce taxes on wage incomes.

This is a very interesting counter-example to George Osborne's and David Cameron's claims that austerity is crucial to keep bond yields low. This is what Cameron said in the rapidly revised part of his party conference speech yesterday, that in a draft version that was circulated told people to save -- when he really meant he wanted them to spend.

When you're in a debt crisis, some of the normal things that government can do, to deal with a normal recession, like borrowing to cut taxes or increase spending -- these things won't work because they lead to more debt, which would make the crisis worse. Why? Because it risks higher interest rates, less confidence and the threat of even higher taxes in future. The only way out of a debt crisis is to deal with your debts. That's why households are paying down their credit card and store card bills. It means banks getting their books in order. And it means governments -- all over the world -- cutting spending and living within their means.

Cameron's speech -- even the corrected final version -- gets it precisely the wrong way round. The only way out of a debt crisis -- if by debt crisis we mean, as he says, a situation where households are desperately trying to pay down debt because on an individual level this is rational -- is for the government to step in and spend more, at least temporarily. For the government to join in and try to save more too, which he argues is logical, is disastrous. A first-year undergraduate course in macro-economics should have taught him that!

What has happened in Denmark -- which, just like the UK, is not in the euro but is a member of the European Union? It is a nice test case, because if Dave is right -- which he isn't -- then bond yields should have soared in Denmark, even on talk of injecting stimulus. They haven't. Here is a selection of yields on ten-year government bonds for Denmark and the UK over the past couple of months or so.

 
  Denmark UK
05/10/2011 2.005 2.354
30/09/2011 2.069 2.427
23/09/2011 1.932 2.363
09/09/2011 1.975 2.456
02/09/2011 2.204 2.641
19/08/2011 2.362 2.606
12/08/2011 2.573 2.753

 

One argument the coalition has made is that the US has lower yields because the dollar is a reserve currency, so their data isn't relevant: currently their yield is 1.888 per cent. But that does present the government with a further problem, because bond yields in Sweden, which is also in the EU but not in the euro, are 1.695 per cent. They are 2.135 per cent in Canada, which is also not a reserve currency, and a paltry 0.879 in Switzerland, which really does look like a place of safety.

Based on the evidence from Denmark, putting additional stimulus into the economy has not caused bond yields to rise and they remain below those in the UK. The Danes are a much better comparison country than the Greeks, the Portuguese, the Italians or the Spanish that don't have their own central bank and currency as the Danes do; just as we do.

David Blanchflower is economics editor of the New Statesman and professor of economics at Dartmouth College, New Hampshire

Photo: Getty
Show Hide image

Ann Summers can’t claim to empower women when it is teaming up with Pornhub

This is not about mutual sexual fulfilment, it is about eroticising women’s pain. 

I can’t understand why erotic retailers like Ann Summers have persisted into the twenty-first century. The store claims to be “sexy, daring, provocative and naughty”, and somewhat predictably positions itself as empowering for women. As a feminist of the unfashionable type, I can’t help but be suspicious of any form of sexual liberation that can be bought or sold.

And yet, I’d never really thought of Ann Summers as being particularly threatening to the rights of women, more just a faintly depressing reflection of heteronormativity. This changed when I saw they’d teamed-up with Pornhub. The website is reputedly the largest purveyor of online pornography in the world. Pornhub guidelines state that content flagged as  “illegal, unlawful, harassing, harmful, offensive” will be removed. Nonetheless, the site still contains simulated incest and rape with some of the more easily published film titles including “Exploited Teen Asia” (236 million views) and “How to sexually harass your secretary properly” (10.5 million views.)  With campaigns such as #metoo and #timesup are sweeping social media, it seems bizarre that a high street brand would not consider Pornhub merchandise as toxic.

Society is still bound by taboos: our hyper-sexual society glossy magazines like Teen Vogue offer girls tips on receiving anal sex, while advice on pleasuring women is notably rare. As an unabashed wanker, I find it baffling that in the year that largely female audiences queued to watch Fifty Shades Darker, a survey revealed that 20 per cent of U.S. women have never masturbated. It is an odd truth that in our apparently open society, any criticism of pornography or sexual practices is shut down as illiberal. 

Guardian-reading men who wring their hands about Fair Trade coffee will passionately defend the right to view women being abused on film. Conservative men who make claims about morals and marriage are aroused by images that in any other setting would be considered abuse. Pornography is not only misogynistic, but the tropes and language are often also racist. In what other context would racist slurs and scenarios be acceptable?

I have no doubt that some reading this will be burning to point out that feminist pornography exists. In name of course it does, but then again, Theresa May calls herself a feminist when it suits. Whether you believe feminist pornography is either possible or desirable, it is worth remembering that what is marketed as such comprises a tiny portion of the market. This won’t make me popular, but it is worth remembering feminism is not about celebrating every choice a woman makes – it is about analysing the social context in which choices are made. Furthermore, that some women also watch porn is evidence of how patriarchy shapes our desire, not that pornography is woman-friendly.  

Ann Summers parts the net curtains of nation’s suburban bedrooms and offers a glimpse into our peccadillos and preferences. That a mainstream high street retailer blithely offers guidance on hair-pulling, whipping and clamps, as well as a full range of Pornhub branded products is disturbing. This is not about women’s empowerment or mutual sexual fulfilment, it is about eroticising women’s pain. 

We are living in a world saturated with images of women and girls suffering; to pretend that there is no connection between pornography and the four-in-ten teenage girls who say they have been coerced into sex acts is naive in the extreme. For too long the state claimed that violence in the home was a domestic matter. Women and girls are now facing an epidemic of sexual violence behind bedroom doors and it is not a private matter. We need to ask ourselves which matters more: the sexual rights of men or the human rights of women?