Never forget: The Banks Caused this Recession...Counter "the vast lie"

"There's a few things Labour should be doing in my view. They have to get a coherent line on the economy,"
Mullin told the BBC's World at One. "Firstly they've got to counter – and my goodness they should have been doing this for a long time – the vast lie which has been allowed to become embedded in the public consciousness that our economic problems were primarily caused by the last government.

"To paraphrase Bill Clinton: it was the bankers, stupid. The only thing Labour needs to apologise for is not regulating the banks sufficiently, and the Tories are not entitled to take advantage of that because throughout they were in favour of less regulation, not more."

How to Solve the Recession: End Prohibition and Tax Drugs?

I listened this morning to "From our own Correspondent" on BBC Radio 4. One report was from Uruguay where they are considering legalising drugs. The main reason given for this was to put out of business violent drug gangs.

I remember being at a pension meeting a few months ago where we received a briefing from an economics adviser on the financial outlook. It was pretty bleak with the prospect of years of little or low growth, demand or investment and continuing cuts in public expenditure. The adviser broadly supported current government policy.

I said there is always an alternative economic policy and why couldn't the UK do what governments did before the second world war - borrow money and invest into massive infrastructure projects to pump prime the economy out of recession?

The adviser made an interesting but provocative response. He said that many people who look to the massive state investments during the New Deal economic programme in 1930's America as an example of what we should be doing now miss an important point. This huge investment was largely fully funded and not borrowed. It was paid for by the ending of the prohibition on alcohol in America, which led to increases in taxation, which paid for the New Deal investment.

While I do not accept all his arguments it did bring the question to the fore that should we in Britain legalise and heavily tax drugs in this country to bring in enough Government revenue to pay off the national debt and invest to bring about recovery?

Since we were at a pension trustee meeting, sadly it was decided that such matters were not really within our remit and we continued to discuss the normal "boring but important stuff" such as valuations, fund manager reports etc. 

I have for many years been convinced that we have lost the war on drugs and we should consider legalising them to get rid of the violent drug gangs. There will still have to be safeguards and it will have risks but if by ending this prohibition and then heavily taxing drugs, we can bring about the end of this recession, is this not yet another powerful reason to at least consider it?

Personal views as always. Photo of anti-prohibition pro-Beer Tax parade in 1930's USA.

"Rising unemployement and recession is a price we had to pay to keep inflation down but that is a price well worth paying"

Tories: Norman Lamont in 1991 explaining that rising unemployment and recession is a price well worth paying to keep down inflation.

Did the unemployed agree? No doubt the wealthy did....

Can everyone remember this is what the Tories are really, really like and vote Labour on Thursday?

Hat tip Captain Swing

Gray Family Recession Watch

This is all very unscientific and not at all representative. However, I thought that after the Crimbo and New Year family get-togethers, I would have a look at how the immediate Gray family “kith and kin” are coping with the recession. This will also involve seeing if there are any green shoots of recovery about.

Firstly North Wales. Spouse of bossy big sister is a self employed plumber who specialises in fitting insulation to heating systems. Most of his work involves newly built or refurbished buildings such as schools and hospitals. Work was a little tight for a month or so last year but so far he has plenty of orders for this year. Maybe he is benefiting from the “Green Agenda”? Bossy big sister is a self-employed Gymnastic coach who runs her own club and so far has seen no drop off in membership or income. Good news was that my niece’s partner who is a construction labourer and had been laid off for nearly a year has just found a local job on a new site with up to 2 years work available.

Next Lincolnshire. Good news again. Spouse of bossy little sister is a very experienced aircraft engineer. For the first time in over 20 years he’s been unemployed for nearly 3 months. He was forced to work for an agency doing night shifts loading delivery lorries at minimum wage rates. (Shame on big companies who employ seasonal workers on minimum wages). He’s now got a contract working in the same aircraft factory that my Dad use to work at many years ago (he was also the local Electricians Union Assistant Branch Secretary). Bossy little sister works in local government (an UNISON member of course) as an assistant social worker and is busy, busy. Nephew works as an “on call” Electrician for a company that manufactures, installs and maintains equipment for warehouse distribution centres. These “just in time” 24/7 depots are highly dependent on skilled electrical and mechanical workers to keep things flowing. He admits that the company was worried about work last year but he is being kept really, really busy with loads of overtime. I wonder if they are so busy because the recession is encouraging firms to invest in mechanisation in order to cut distribution costs (jobs?).

I’ve yet to meet up with the Ipswich branch of the clan so will report back on this visit another time. But so far good news for the Gray’s (touch wood). I know things are really tough for many people at the moment but I hope other families will find the New Year as promising.

(Picture of modern day Gotham City from Wanstead flats)