Sunday, August 8, 2010

Big Society

In this era of austerity, where budget cuts are likely to mean the pentimation of most public services, the Big Society is a fantastic, parallel idea to build, well, a Big Society. Whatever that means. It’s not a building, it’s not even an organisation, but a society made of people: the same people that actually live in society at the moment, just Bigger. Perhaps the actual people will be bigger, but perhaps not, as people are quite often told that on average they are already too big, and really need to be smaller. So everyone will be smaller, but also Bigger at the same time. No-one really knows how this will happen, except people will volunteer for things, like running a stall at the annual school fete. In a way which most people already do in say, Witney, where Dave has his constituency. But not in Moss Side or North Shields, where people prefer to sell mysterious and expensive white powders rather than mom’s apple pie. And probably always will, however Big society becomes in Witney.

Teenagers will also be able to sign up for non-compulsory compulsory national service. This doesn’t involve joining the army and learning how to defend the Falklands, but it will significantly lower the average age of Oxfam employees. Which is fantastic and wonderful for Society. Society will be Bigger, as all teenagers will be doing something useful in their summer holidays. Except for the ones who don’t sign up for it.

But most of all it has to be said that ‘the Big Society isn’t just a cover for huge budget cuts.’

Of course it isn’t.

Friday, July 9, 2010

Inflation and Pensions

The latest idea from the coalition to save a bit of money and reduce the gargantuan deficit it to index link pensions to CPI (inflation which does not include house prices and council tax) rather than RPI (inflation which does include house prices and council tax.) This seems like a good idea at the moment as house prices have been increasing over the last year or so making RPI higher (5.1%) and CPI lower (3.4%).

In fact, many previous governments have historically vacillated between using CPI and RPI, and also wage inflation, as the means of indexing benefits and pensions. The best option for the government is of course to use whichever measure is lowest for indexing. Perhaps this is why headline inflation is deemed to be whichever measure is most expedient for the budget.

A previous minister, at a time when all three measures were running quite high at about 5% actually suggested using a new measure called 'core inflation' for indexing. Core inflation was far lower and apparently included only various 'core items', but it didn't include food, petrol, housing or energy costs - things which people actually buy. In fact nobody knew what core inflation did include apart from T-shirts from Primark and DVD players, which was why it was consistently so low, and therefore great for indexing.

The danger of changing the method of indexing is that CPI and RPI swap over quite frequently. When house prices are rising, RPI is higher and CPI is lower, so CPI is preferred for indexing. Vise versa for when house prices are falling: RPI is lower and thus preferred for indexing.

At this particular moment in time, house prices may just about to start falling again and sharply too, which in extremis could bring RPI into negative, deflationary territory. By altering the method of indexing pensions to CPI now, the government will save money in the short term, but will pay very soon if RPI falls sharply lower, perhaps losing as much money from the nation's coffers as in Gordon Brown's disastrous sale of gold at the bottom of the market. If this does happen though, there will be an immediate solution available of switching indexing back to RPI, although this will appear to be immensely cynical.

In the age of 'fairness', whatever that is, perhaps it would be truly fair to index benefits and pensions to the mean average of RPI and CPI, which will ensure some savings to the nation over indexing to the highest measure of inflation, and puts in place a single 'fair' system of indexing which everyone knows about, and cannot be changed on a whim by the goverment of the day.

Football and Entitlement

It's nice to look forward to the World Cup final on Sunday without especially supporting either of the participating teams. Most people in Europe quite like both the Dutch and the Spanish, so can just sit back and enjoy the match and hopefully some entertaining football from two teams who deserve to be finalists.

Seeing the progression of these two deserved teams, throws the progress and attitude of the England football team into sharp contrast. In almost every tournament of this level, England turns up with players and fans expecting to win, almost with the sense that they are entitled to win. And every time the team under-performs, or perhaps does perform to its level of ability - a level of semi-capable mediocrity which very much reflects much of the country from which the team hails.

It is easy to attempt to disown the team as not truly representing England, or being a bunch of over-paid out-of-touch megastars. The reality is that - yes, the members of the 'team' are for the most part a collection of selfish, greedy, sociopathic narcissists; but in saying so we hold up a mirror to ourselves. For this description quite fairly reflects the spirit which permeates through far too much of the English country and culture at this point in history.

The sense of entitlement is evident in England from the dole queue to the football star: the sense that one deserves something for nothing, and has no need to earn or work for a wage, or a prize, or anything else. At the dole queue, one expects money for not working; on the football pitch, one expects to automatically win a tournament without particularly doing anything special at all, even though there are far better players and teams from other countries there to act as agents of wrath on those carrying such a sloppy philosophy.

It is time to cast off the moronic concept of entitlement that has been built up over the last decade or so, and realise that if one desires success, one has to earn it and fight for it. In business, the Chinese know this. In football, the Dutch and Spanish know this. So let us watch the final on Sunday and take inspiration, and let it infuse our own minds and spirit with vigour and courage once again.

Friday, June 11, 2010

Generation X

Sometimes I get immensely uncertain of myself and my place in the world. I blame this on my birthyear; I was born in 1971, which puts me bang in the middle of Generation X (1963 - 1981), and this is a really shit generation to be belong to.

The generation before, the Baby Boomers (1946 - 1962) may be self- confident, self-absorbed, self-important egotists, but they are social pioneers, changing the world in their image as they go through every stage of life from youth to, now, retirement, and leaving the rest of society to deal with their detritus.

And the one after, Generation Y or the Millenials (1982 - 1999) are cyber-savvy eco-hedonists, living in the now, enjoying all the pleasures of life completely guilt-free. Everything goes, everything is acceptable, except perhaps jealousy and driving a hummer. You can shag as many people as you like, no worries; as long as you wear a fair-traded, carbon-offsetted condom and put the pix on the internet the next day. Life is for living, pleasure is for taking, so have it now!

On the other hand hand, Generation X is crap: the children of Thatcher and Reagan, characterised by guilt, debt, uncertainty and existential angst. It lacks both the purpose of the Baby Boomers and the confidence of the Millenials, and seems doomed never to find its way.

Monday, May 17, 2010

PIGS and SWINE

I'm proud to say that I invented the acronym SWINE (Scotland, Wales, Ireland (Northern), England) yesterday afternoon. After posting it on the Telegraph's site under the name Dick Cleggaron, it has already seen rapid uptake in the parlance of the chattering classes after only 24 hours or so.

Seriously though, it is meant to elucidate the dreadful state of the UK's public finances. It's easy to go on and on about the PIGS, who are in a terrible mess, while carrying on as if life is a dream on Britain's sceptered island. Yet naming the UK as SWINE will hopefully make everybody wake up to the immensely precarious cliff edge that Britain's economy is racing towards at breakneck speed. The SWINE Britain is equal to and no better off than the PIGS.

Perhaps, if this acronym gains common usage across media outlets, it will focus the minds of the people and the economic leaders to take swift action to clear the deficit in the lifetime of this parliament. Let us hope that the esteemed coalition and its newly formed leader Dick Cleggaron pass by.

Thursday, May 13, 2010

May isn't turning out to be too bad a month after all. The Greek crisis has been kicked into touch for a few weeks, and Britain has a new Prime Minister and coalition which will provide stable government for a few weeks more.

Now if only BP can cap their leaky pipeline at the bottom of the sea, the world can get back to normal. The chances of that happenning any time soon look very slim however. Now that the first pictures are emerging of the smallest leak which looks horrendous, heaven knows what the largest leak looks like - and in all probablilty BP knows as well, but are claiming that they can't release them yet.

Most people might suspect that they could release their visuals of the largest leak in the next 20 seconds if they so chose, but know that they would scare a higher percentage of people than a viewing of The Exorcist in a kindergarten. BP would for ever be associated with an iconic image of environmental terror equal in effect to the destruction of the twin towers. Such images would be instantly seared into the minds of the public, causing BP's share price and profits to plummet. So perhaps one shouldn't expect to see pictures of the largest leak anytime soon.

Wednesday, May 12, 2010

At last there is a Prime Minister in number 10. Congratulations to David Cameron, and also to Nick Clegg, and their respective parties. Perhaps after all the resulting coalition will be a good thing. One can take into consideration that the two parties between them have 59% of the popular vote, which is the biggest share for decades, and the first time which a majority of the country has voted for the leadership they are getting since the second world war. So congratulations to the British people are also in order, who now have a truly representative government.