Wednesday, 29 April 2015

Inequality: A discussion worth having especially for young people

Yesterday the IFS were ‘whining’ again. Information put to the electorate by the established parties wasn’t comprehensive enough, Really? You don’t say. The Parties dare not outline the specific ‘pick n mix’ cuts package just in case but we all know that it’s a question of, ‘austerity or austerity light,’ as Natalie Bennett of the Greens likes to yelp so often. However, whilst voters are secure in the knowledge that a first past the post system will give them at least 30 billion of cuts to public services they are waking up ‘en masse’ to a growth in inequality.



It is not just the disgruntled paupers, a recent You Gov poll suggested that 56% of participants would rather see a less wealthy nation in the round than an unequal one. This is particularly the case for young people. Last year saw an open letter sent from Nick Hanauer, who was involved in founding more than 30 companies  including giants like Amazon.com, in which he famously said, ‘I see pitchforks coming.’ ‘I agree with Nick.’ This seems an especially stark comment this morning set against a backdrop of Baltimore MD, which from what I know about ‘the Wire,’ is more a tale of two cities divided by wealth than by race.

Yesterday the yearly GDP figures were released to a Tory tune of, ‘let’s stick with it,’ and a Labour lament of ‘,austerity isn’t working. Each party political ‘durge’ has its flaw. Sticking with a ‘long term economic plan that sees a declining result is a tough sell no matter how wistful one is with the split cane and the whole ‘,austeristy isn’t working’ argument from Labour come up hard against the fact they signed up to 30 Billion in cuts in the last parliament. The public are not stupid and as Armando Iannucci mentioned in his column today, young people especially, are misinterpreted as being disengaged. They are as he puts it, ‘feeling exasperated’ with a system that increasingly doesn’t represent them, or at least they do not feel that it does.

Young people and indeed everyone else are not concerned with GDP figures or unemployment statistics, they care about their own subsistence and how this can be improved. As I mentioned in a previous post and Stanley Johnson kindly corroborated on yesterday’s Daily Politics, a more representative indicator of the Nation’s average wealth is GDP per capita, which has fallen. The commonly thrown around economic indicators like GDP and such, I would imagine fall on deaf ears when most of us feel worse off than before the crash. This, again is especially true for young people who have suffered a particular stark fall in GDP per capita due to the rise in sectors like retail and catering which of course have contributed to the Coalition’s triumphant fall in overall unemployment.

The accommodation and catering sector grew by 89,000 jobs in 2013 according to the Office for National Statistics and for the same year, industries like financial services and insurance contracted. So there is a real question about employment and what employment for the future of Britain looks like. The nature of employment seems to be coming to the fore but when I hear complaints of young people being disengaged with politics, I have to ask, as I think Armando Iannucci was in his piece, why would they engage with a system that only works for them when they are rich? The majority of our nations young will never be rich.

Productivity growth has fallen to worrying levels according to the New Policy Institute and they state that behind the employment figures, that the government drool over is a message of worry. Too many self-employed people simply means a sluggish recovery for household income, if any. The NPI warn of another looming recession hidden behind the Tories’ long term economic plan and I doubt life will be much nicer under labour for those at the low end of the payscale. Especially the young, have I mentioned that?