It is a recurring sub-current of this blog that we are moving away from a democratic era towards a neo-feudal one where plutocratic rule subjects us all to the control by an elite who control us for their own economic advantage. I still think this is preventable, and am convinced that for all its faults democracy remains the most way for all people to be governed because it alone provides an environment where everyone has best hope of achieving their potential - which is my view of the right goal of all economics.
It was in this context interesting to note this headline in an FT email this morning:
Now please do not get me wrong: I am not saying that we are like Russia, because we're not, as yet. But the argument, put forward by a former oligarch, is that in Russia there is no private property anymore as Putin feels able to command the resources owned by anyone be seized at any moment.
He may well have a point, even if I have no sympathy at all with the oligarchs who simply wish for a different form of plutocracy, as far as I can see.
Now this contagion need not spread. I hope it will not spread. But unless we have robust defences put forward of the right of democratic institutions to really govern without the interference of powerful elites in the decision making processes of this country to ensure rules are skewed in their favour then the advance of neo-feudalism - which has already resulted in all the economic gains that have arisen since the recession began going to a small group in society - will continue.
And be aware that this split of rewards did not happen by chance. It happened by design.
The good news is that even organisations like the IMF and OECD have now realised that and realise how dangerous this might be as inequality grows. But they will, if they are to change matters, have to engage in economic warfare because there is no doubt that an elite will fight them all the way for the control of the world's resources that rightfully belong to those who worked to create them and not those who are using power to control them.
And yes, proper tax system that redistribute income and wealth are key to this process, and to the defence of democracy itself as a consequence.
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Ahem, “we are moving away from a democratic era towards a neo-feudal one where plutocratic rule subjects us all to the control by an elite who control us for their own economic advantage.” this is what we’ve already had for centuries. One teeny sector can create money from nothing with our signature, the rest of us, apart from those on benefits or in receipt of unearned grants & subsidies, inheritances etc. have to work to get that same money in any amount. I would suggest setting this scheme up was the point of the Dutch bankers funding the takeover of the monarchy here by William of Orange and his subsequent introduction of what was described by Disraeli as ‘Dutch finance’ which then as now, as he observed, ‘placed a mortgage on men’s endevours’. You need money to do just about everything these days and one tiny group creates it from nowhere and lends it to the rest of us at interest which means we’re always working to pay off that interest; we work for them, in other words. So, it’s not new, all that’s changing is they’re stopping even bothering to hide it.
Richard-I’m not sure your choice of FT headline is as apposite as usual as we are talking about competing plutocrats here each regarding themselves as feudal lord.
Pugachev is protesting there is no unassailable private property. One of the main issues in our society is the rent on Land values which is deemed inalienable to the cost of everyone. As well as wage inequality the rent garnered on Land and property on it is the major generator of economic downturns and inequality. We are (subconsciously) crying out for LVT-after that, houses, cars and all are gewgaws can be private property.
I hoped I made that point in the blog
Apologies if not
The neo-feudals are already here, Richard, and their power is considerable. Our politicians consider themselves to be their servants (witness the craven, servile, attitude of the last Labour Government to its wealthy donors and paymasters, the fast-tracking of the Hinduja Brothers’ naturalisation application, Peter Mandelson saying that ‘we are really rather relaxed about people being stinking rich’, Tony Blair fawning on Murdoch and the senior employees of his Empire; David Cameron was to follow suit, of course, only to end up being embarrassed by the association).
If it is the case that none of our politicians, of any party, now believe that they can adopt any policy that is unacceptable to the City of London or the CBI, then we no longer live in a democracy. If this veto is further reinforced by the terms of the Transatlantic Trade and Investment Partnership (TTIP) currently being negotiated (behind closed doors and in secret) between the EU and NAFTA (the North Atlantic Free Trade Area, covering the US, Canada and Mexico), which will include – so we are given to understand – terms that involve an International Tribunal, to which companies that believe that Governments have acted ‘in restraint of trade’ can take their cases and be compensated, at the expense of those Governments.
Thus, suppose a future Labour Government wishes to repeal the Tory-LibDem Coalition’s Health and Social Services Act, 2012, and reverse the privatisation of the NHS, US forms such as Kaiser Permanente or Blue Cross could (and probably will) sue that Government for millions, if not billions, of dollars in compensation for loss of profit – and there will be no right of appeal. The entire concept of ISDS (Investor State Dispute Settlements) is totally iniquitous. It will kill democracy in this country stone dead – unless either (a) TTIP is stopped now, at EU level; or (b) if it isn’t, we, as a country, withdraw from the EU. We will simply have no alternative whatsoever if we want to keep our democracy.
We need a new constitutional settlement in the United Kingdom, where power is redistributed away from corporations, banks and businesses back to where it belongs – the people. Only then will this country have the right to call itself a democracy again.