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We Don’t Live in a Capitalist Economy

Tagged: Bank of England, capitalism, currency, Economy, State Spending

When politicians talk about Great Britain I often hear ’the problem with capitalism is’. My response to this is ‘how do you know capitalism is the problem?’ It is extraordinary that so many people take it for granted that we all live in a capitalist economy. While our economy, like all developed ones, is largely capital-based the way that capital is used, produced and controlled is far from capitalistic. Three things seem to impede our claim to capitalism: excessive state spending, the dominance of oligopolies and a nationalised currency.

All estimates put public sector spending as a percentage of GDP between 45-50%. It is astonishing that 45-50% of our economy is taken up by state spending. In terms of employment about 20% of the labour force is in the public sector; in some areas such as Glasgow, Liverpool and Birmingham the majority of employment is in the public sector. Our economy is mixed. The state may not consume the majority of GDP but its share is large enough to challenge the claim that we live in a capitalist economy, especially given the fact that the two systems are so different.

The Truth behind the Independence Debate

Tagged: Alex Salmond, Britain, England, Referendum, Scotland, Scottish Nationalists, Union

The referendum on Scottish independence, probably happening in late 2014, will be one of the most important historical moments in the history of the British Isles. The debate that will proceed the vote for the following years will no doubt touch upon all parts of life in Scotland, England, and, indeed, Britain as a whole. Politics, economics, and culture will be some of the more obvious areas of contention upon which the pro-union parties will have to present a clear, coherent and united front against the Scottish Nationalists. These are the facts that both the media and the political parties have clearly pointed out and realised as the scale of the situation that is facing the nation.

2011: The Year of the Protester?

Tagged: Autumn Riots, David Willits, Libyan Civil War, Protester, Royal Wedding

2011 was an eventful year for the World from the Libyan Civil War to the Royal weddings to the tsunami disaster in Japan. Though, for most people and media commentators the lasting legacy of last year will be the power of the so-called“ Protestor”, Time Magazine’s ‘Person of the Year.’

This already mythic story is that across the globe ordinary people decided to stand up against “dysfunctional and corrupt – sham democracies rigged to favour the rich and powerful and prevent significant change”. In the Middle East, long-standing undemocratic rulers were overthrown, and in the West protestors, particularly students, launched riots in cities, occupied national monuments, and demonstrated against a system created and maintained by the rich and powerful. The problem with this myth is just that. It’s a myth. Merely an illusion of a small minority.

Taking Back The Jack

With the union on the verge of collapse, we have to wonder about the future of that well-loved symbol the Union Jack. Well technically it’s only the Jack when it’s at sea, but in reality we all know it as the Jack.

The Jack has come a long way since its inception in 1606 at the behest of King James I of England and VI of Scotland, who sought to create a common symbol to reflect the union of the English and Scottish thrones.

It has meant many things to many people over its long history; unity, modernity, patriotic fervour, hope and even rebellion. Today you can get the Jack in different colours and designs with it often being a popular tourist memento.

“This House believes the Conservatives have been unfairly demonised”.

This Thursday will see the Cambridge Union holding its first debate of the 2012 Lent Term, with the motion: “This House believes the Conservatives have been unfairly demonised”. David Cowan, member of the CUCA Committee, and Richard Johnson, Chair of CULC, discuss whether the Tories have been vilified unjustly.

David argues in favour of the motion:

Throughout Cambridge University there are many Conservatives. But many of them dare not openly admit this. Young Liberal Democrats, Labourites, Socialists and Marxists are lauded as idealists who care about the injustices of the world, whereas young Conservatives are seen to be unpleasant, reactionary and self-interested individuals with no capacity for compassion.

This perception has very little to do with the facts and has everything to do with the left’s need to discredit a party which has done so much for this country, especially for the most vulnerable in our communities. Peel’s Factory Act 1844, Disraeli’s Artisan’s and Labourers’ Dwellings Improvement Act 1875 and Public Health Act 1875, Butler’s Education Act 1944, Macmillan’s housing programme, and Thatcher’s Right to Buy initiative are just some of the Conservatives achievements which have improved the nation as a whole.

Welcome!

CUCA is the largest, most active political organization at Cambridge University. This term we will be campaigning hard ahead of May’s local elections in Cambridge, as well as working for Boris Johnson’s re-election in London. We also have a very exciting programme of speakers and social events.

If this is your first visit to our website, or if you have been in Cambridge for a while but never been to a CUCA event, why not give us a try this term? I hope to see you soon!

Edward Turnham, Chairman, Lent 2012

Boris Johnson and the Angel in the Marble

Boris Johnson is the darling of the Tory grassroots. From the pulpit of his Telegraph column he has hurled bread to his Tory base. His support for tax cuts, higher police numbers and his stance on Europe reveal a populist streak. He has earned the affection of ordinary Tory voters in a way no other Conservative politician, including David Cameron, has managed.

That is not to say Boris Johnson is a Tory ideologue. He is a very much a Tory pragmatist who has tried to appeal to the liberal metropolitan London electorate with substantial increases in the London Living Wage, criticism of housing benefit reform, and support for an amnesty for illegal immigrants. Appealing to the outer suburbs will not be sufficient for a successful re-election campaign. Getting out the vote will be his first priority and that means he has to appeal to a very broad range of people.

Vickers report: don’t kill the goose that lays the golden egg!

The coalition’s response to the Vickers report was a missed opportunity. A chance to reform Britain’s banking sector for the better has been hijacked by the Liberal Democrats’ yearning for influence. And so George Osborne has accepted the report in full, though it couldn’t be said totally against his own judgement.

The most flawed ‘reform’ is the ring-fencing of banks’ investment and retail arms by legal firewalls. This policy is based on the fallacy that so-called ‘casino banking’ in banks’ investment arms put retail customers at risk. This simply does not add up when one considers the fact that Lehman Brothers did not have a retail arm and Northern Rock did not have an investment arm. Yet both collapsed. Spectacularly so. The truth is that there is always risk in banking, whether you are dealing withCDOs or straightforward home loans.

In six months Boris Johnson and Ken Livingstone face the defining political contest of 2012. Mr Livingstone has tried to make the Mayoral election about the coalition’s spending cuts, while Boris has put forward an optimistic vision for London’s future.

It is essential that Boris Johnson and the Conservatives hold onto London. Ken Livingstone represents everything that is wrong about the Labour party, with his cronyism, support for oppressive dictators, racist slander, patronage of hate preachers and backing thecorrupt administration in Tower Hamlets. A torrid series of shameful offences, of which more can be read about here. His record as London Mayor was appalling. This video clearly demonstrates how he put increasing pressure on the living standards of ordinary Londoners by increasing Council Tax by 153 per cent and introducing the western congestion zone charge.

George Osborne is a Man with a Plan

George Osborne is a man with a plan. He is also a Conservative Chancellor in a coalition government at a time of financial turmoil not seen since the 1930s.

However, he is also a shrewd political operator, who managed to use his Inheritance Tax pledge to call Gordon Brown’s bluff in 2007 and opposed Alistair Darling’s NIC increase in order to give the Conservatives some momentum in 2010. George Osborne has managed to construct a growth strategy which accommodates the Liberal Democrats, includes political electioneering for a Conservative majority in 2015 and will hopefully rebuild the British economy.

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