The Radical Alternative to Austerity
John McDonnell MP has asked TCF to publish this statement. We’re happy to oblige. John says of the statement:
It is not meant as a definitive statement but at least a broad depiction of what a radical alternative would comprise.
I am asking people to consider putting their name to it so that we can continue to circulate it to the movement.
Please let me know if you are willing to put your name to the statement by emailing me on mcdonnellj@parliament.uk.
The Radical Alternative to Austerity
The austerity programme of the Coalition government is not just failing; it is prolonging and deepening the recession. Cuts in investment in public services, in jobs, wages, pensions and benefits are creating mass unemployment and mounting hardship.
Austerity is creating a spiral of economic decline as cuts produce high levels of unemployment which in turn reduces tax income and prompts another round of cuts and job losses.
The Government’s austerity measures are also unfair as the only people the Government seems intent on protecting from the recession are the rich.
There is an alternative to austerity
There is no lack of wealth and resources in our country that we can draw upon to tackle this recession. The problem is that this wealth and these resources are held in the hands of too few people and are not being used productively to create the growth and jobs we need.
If we can release these resources, we can overcome the current recession and start to build a prosperous future for our country, linking with others across Europe and the United States to overcome this global economic gridlock.
Releasing the resources within our own country is not difficult.
It simply requires the introduction of a limited range of redistributive measures which will raise the funds we need from those most able to pay and who have profited most out of the boom years.
This redistribution can be achieved through;
- a wealth tax on the richest 10%;
- a Robin Hood tax on financial transactions;
- a Land Value tax;
- the restoration of progressive income tax of 60% on incomes above £100,000;
- and a clamp down on the tax evasion and avoidance that is costing us £95 billion a year.
Investing the resources released can halt the spiral of decline.
With unemployment rising month by month we urgently need to get people back to work and earning a decent living.
We can do this by investing the resources we have released through taxation in modernising our economy, its infrastructure and our public services to meet the needs of our community.
Instead of cutting and privatising our health, education and local services, this means:
Investing in a mass public housing building and renovation programme, in universal childcare, in the modernisation of our public services, in the NHS, in creating a national Caring Service, in our schools and colleges, in our transport infrastructure and in the extension of broadband.
Investing in alternative energy, combined heat and power and insulation to both tackle climate change and create one million climate change jobs.
Establishing a national investment bank with the resources levied from the banks so that there is no shortage of funds to lend for manufacturing growth and research and development.
To be successful the recovery programme has to be fair.
We will need the support of a significant majority of our people if we are to drive through this type of radical regeneration and redistribution programme.
To gain this level of support means the Radical Alternative must be seen to be fair. This means addressing many of the inequalities of our current system.
For those at the top it means ending the bonuses and limiting high salaries to no more than 20 times the lowest paid in any company or organisation.
For all others it means replacing the minimum wage with a living wage and a living pension and living welfare benefits, reducing the working week to 35 hours, closing the gender pay gap, controlling rents and energy prices, and restoring rights at work.
For young people it means a guaranteed job, apprenticeship, training or college place for every young person with the burden of fees abolished.
There is no shortage of resources to implement this programme of reform.
The problem is the distribution of these resources.
The Radical Alternative simply releases the resources we have to regain control of our economy and invest in our future.
Never again can we let them say that there is no alternative.
limiting the ratio to 20:1?! How about 6:1 as the goal?
These are pretty much all Green Party policies. But with a maximum income ratio of 10:1. A Robin Hood Tax (long-standing policy) and a Wealth Tax (passed at last conference) are key Green platforms…
Seems like a good start. And dare I say it, there’s quite some overlap with Compass thinking. One note about presentation – unemployment hasn’t been rising month by month recently (nationally, official headline figures) – I’d edit that sentence to circumvent pedantic quibbling.
“These are pretty much all Green Party policies”
Perhaps, but the Greens won’t achieve much. The brand is too narrow to ever get them a majority. They’d be much better off converting themselves into a socialist party and dropping the Green branding, while obviously retaining an interest in the environment.
Broadly in favour but we need to tax unearned wealth and not income so would not be in favour of a higher rate of income tax. In addition we need to get rid of VAT as far as is possible.
I do like statements from MP’s without the real Math presented. The ideas could work, however putting private businesses on a leash is not a good idea. With the amount of revenue the above would bring in against the number of ideas it would help cover does not ring true. Though again, without the facts, I cannot say this with any evidence.
I feel this is very much down to compromise, and I do not see the rich, nor have I seen or read in the past 100 years of the wealthy giving their wealth away without some sort of gesture. And personally, if they worked hard for it, why should they?
Rather than trying to do this nationally, we could do something simular but regionally, even better, locally. Then the money is spent locally, so those with money will see the benefit their new taxes and where they are going. But next to money, comes influence, and again, I don’t see it.
The government body is outdated and is no longer affective with the size of the population and only 600 MP’s. The system needs to change, and the best way is to have smaller commons dotted regionally, so the people have more control and a much larger relevant say where their taxes are going. Please do not think it will cost more, because it would probable cost less as it would re-distribute the revenue rather than asking for more.