{"id":3579,"date":"2014-01-28T21:03:33","date_gmt":"2014-01-28T20:03:33","guid":{"rendered":"http:\/\/www.theoillamp.co.uk\/?p=3579"},"modified":"2014-01-28T21:03:33","modified_gmt":"2014-01-28T20:03:33","slug":"the-implications-of-jubilee","status":"publish","type":"post","link":"https:\/\/www.theoillamp.co.uk\/?p=3579","title":{"rendered":"The implications of jubilee"},"content":{"rendered":"<p><a href=\"https:\/\/www.theoillamp.co.uk\/wp-content\/uploads\/2014\/01\/harvest-finished-in-autumn_opt1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-3591\" alt=\"harvest finished in autumn_opt\" src=\"https:\/\/www.theoillamp.co.uk\/wp-content\/uploads\/2014\/01\/harvest-finished-in-autumn_opt1-300x225.jpg\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.theoillamp.co.uk\/wp-content\/uploads\/2014\/01\/harvest-finished-in-autumn_opt1-300x225.jpg 300w, https:\/\/www.theoillamp.co.uk\/wp-content\/uploads\/2014\/01\/harvest-finished-in-autumn_opt1.jpg 400w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>In the last post we had a very brief look at the idea of <a href=\"https:\/\/www.theoillamp.co.uk\/?p=3550\" target=\"_blank\">jubilee<\/a>. In this follow up post I am going to suggest how we might if not have something similar, at least follow the spirit of the jubilee.<\/p>\n<p>As I wrote one the inescapable conclusions about the jubilee was it was an attempt to reduce inequality. \u00a0 At the moment inequality is rising almost everywhere (at least in developed OECD countries).\u00a0 Especially in the US and UK.\u00a0 There has also been much talk of the rise of a new middle class in the &#8220;BRIC&#8221; countries recently.\u00a0 An article by <a href=\"http:\/\/www.theguardian.com\/commentisfree\/2014\/jan\/20\/new-middle-classes-world-poor\" target=\"_blank\">Paul Mason<\/a> in the Guardian recently suggests that these people are not nearly as wealthy as we would think of the middle class in the developed world.<\/p>\n<p>He goes on to write;<\/p>\n<p>&#8220;<em>What was unthinkable 20 years ago is now becoming tangible: that the real incomes of skilled workers, knowledge workers and managers in &#8220;developing countries&#8221; are overlapping with those at the bottom of the heap in western society.<\/em>&#8221;<\/p>\n<p>Another statistic being banded around last week was that the richest 85 people in the world are worth as much as the world&#8217;s <a href=\"http:\/\/business.time.com\/2014\/01\/20\/worlds-85-wealthiest-people-as-rich-as-3-5-billion-poorest\/\" target=\"_blank\">3.5 billion poorest<\/a>.\u00a0 The reasons for this are self evident. Off-shoring has hit manual jobs in the West and taxes have been cut for the wealthiest.<\/p>\n<p>Does any of this matter?\u00a0 I think it does.\u00a0 There are good practical reasons to make societies more equal.\u00a0 We all ultimately end up paying the price somehow through crime, bigger prisons, paying for ill health etc.\u00a0 But I also think its offensive to God.\u00a0 The prophets clearly saw morality as more than just &#8220;personal morality&#8221;.\u00a0 See Amos 2v6 for example.\u00a0 Jesus and the whole bible does appear to have a bias to the poor (Mathew 25v31-36.\u00a0 Its not that the rich are less precious to God but as my minister put it recently, he knows they can look after themselves.<\/p>\n<p>So what could we do to follow the spirit of the jubilee?\u00a0 Looking at a graph provided in the print edition of Will Hutton&#8217;s article (link in the previous post) on the total income going the richest 1% of the population, there are some clues.\u00a0 The 1970&#8217;s in the UK was when the wealth difference between the richest and poorest was at its narrowest. Incidentally its also when were at our happiest.\u00a0 Here are my suggestions;<\/p>\n<ul>\n<li>Raise taxes on the wealthy but cut taxes for the those at the bottom of the income pile.\u00a0 The UK government has done half of this, raising the point at which you start paying taxes dramatically.\u00a0 However, they also cut the rate of income tax for the wealthiest.\u00a0 The opposition labour party has just said they will raise the top rate of tax if elected which is causing an enormous political row here.\u00a0 There is no doubt in my mind that so far the burden of reducing the post crash government deficit in the UK has fallen too much on the poorest and too little on the richest.\u00a0 At the same time food and energy prices have soared, leading to a cost of living crisis.\u00a0 We can see the results with burgeoning foodbanks.<\/li>\n<li>Strengthen trade unions. In the 1970&#8217;s trade unions were very powerful in all developed countries.\u00a0 They got too powerful, especially in my country.\u00a0 Mrs Thatcher introduced a whole heap of legislation to control them.\u00a0 Just recently here some commentators have started to whisper that maybe unions are too weak.\u00a0 In companies where there are strong unions there are good wages and conditions and these companies have high productivity.\u00a0 No one wants to go back to the days of the 70&#8217;s with wildcap strikes but maybe the German model with union representation on boards is the way forward.\u00a0 German companies are very successful, they look after their staff and who can remember the last major strike at a large German company?<\/li>\n<li>Pay not just a minimum wage, but a living wage.\u00a0 Over the last 25 years median wages have not increased in real term in the UK and US.\u00a0 Over the last few years the minimum wage has decreased in real terms.\u00a0 The UK government is talking about raising the minimum wage way ahead of inflation.\u00a0 Some of this is politics but some is to do with tax credits.\u00a0 It may surprise US readers but in the UK the government subsidies Google, Amazon and a variety of other large and small companies.\u00a0 They do this through tax credits for low paid employees in these companies, who can claim back tax when their income is below certain thresholds.\u00a0 This is crazy.\u00a0 It would be better to pay these employees better in the first place.\u00a0 Then the benefits bill would fall (tax credits are counted as part of welfare).\u00a0 This idea is known as the living wage, above the minimum wage it is set at a value you can actually live on.\u00a0 In London many Christians have joined with other faith groups to get cleaners in the city of London paid it.\u00a0 In the US McDonalds employees went on strike demanding it.\u00a0 I understand McDonalds response was to print a leaflet telling employees how to survive on low pay.\u00a0 A living wage fits in with the spirit of the jubilee.<\/li>\n<li>Promote full employment.\u00a0 Not easy this one, especially in a static economy we will have post oil.\u00a0 As we wrote in &#8220;No oil in the lamp&#8221; the Christian economist Herman (Daly) the economist is unsure about this; &#8220;<em>Daly does not claim to have all the answers; for example he is unsure whether such an economy could support full employment (his counter argument is that he doesn\u2019t think the current globalised one can either<\/em>).\u00a0 As I have blogged before many jobs will disappear post peak, but others will be created.\u00a0 But governments such do everything they can to ensure the maximum number of people are usefully employed.<\/li>\n<li>Do a debt forgiveness or a one of wealth tax to pay off national debt.\u00a0 That well known communist organisation the <a href=\"http:\/\/www.theguardian.com\/business\/economics-blog\/2013\/nov\/05\/moral-case-wealth-tax\" target=\"_blank\">International Monetary Fund<\/a> has suggested countries implement a one off tax to pay off national debt.\u00a0 At the moment we have the crazy situation where much of the tax we pay is going to debt interest.\u00a0 If we could get that of the government&#8217;s books we would have more money to play with.\u00a0 There are three ways of doing this.\u00a0 A write-off of debts in keeping with the jubilee concept.\u00a0 (I would include non-governmental debts in this as well since banks like RBS are apparently struggling to collects the debts they are owed).\u00a0 A one-off wealth tax or finally unconventional economics from central banks &#8211; instead of QE why not &#8220;parachute&#8221; money in pay off the debt.\u00a0 If you did any of this you could increase spending or maintain it without borrowing and cut income tax for everyone.<\/li>\n<li>Reform the tax system. At the moment most developed countries tax systems are massively over complicated.\u00a0 Simplifying them would not allow individuals and businesses to avoid tax so easily.\u00a0 This will not be easy and take a long time.<\/li>\n<\/ul>\n<p>These are just some suggestions for a new jubilee.\u00a0 Part of an occasional series on new economics.<\/p>\n<p>Neil<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the last post we had a very brief look at the idea of jubilee. In this follow up post I am going to suggest how we might if not have something similar, at least follow the spirit of the &hellip; <a href=\"https:\/\/www.theoillamp.co.uk\/?p=3579\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[20,3],"tags":[],"class_list":["post-3579","post","type-post","status-publish","format-standard","hentry","category-economics","category-peak-oil"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The spirit of the jubilee<\/title>\n<meta name=\"description\" content=\"In the last post we had a very brief look at the idea of jubilee. 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