“We cannot expect anything good to come from a Chamber stuffed with the scientifically, historically and economically illiterate, or a load of self-serving sociopaths”
There is only one course of action – to totally and utterly reform the government, clearing out every amoral politician and stringently regulating future elections to ensure only those who are demonstrably learned, wise and possessed of a genuine concern for the welfare of individuals are able to enter Parliament. We cannot expect anything good to come from a Chamber stuffed with the scientifically, historically and economically illiterate, or a load of self-serving sociopaths.
Ordinary people have two ways of influencing government policy, persuasion, and force, and both were tried and failed. Scientists and medical professionals, business owners, religious leaders and philosophers all made well-substantiated rational arguments to no avail. Protests were a display of force but achieved little. To dissent was to be ridiculed or suppressed, or even criminalised and brutalised by police.
“The underlying fact is that lockdown is a form of tyranny and must be treated as such”
The underlying fact is that lockdown is a form of tyranny and must be treated as such. Past tyrannies have only fallen with the help of external powers. The Nazi tyranny ended after a war in which millions died. The Soviet tyranny collapsed through weakened governance which Western efforts worked to undermine. The Chinese Communist tyranny has never collapsed because nobody has stood up to China.
Of course, overthrowing the status quo and completely starting again is pure fantasy; it isn’t workable, so I will alter the question because there can be no guarantee against future lockdowns, and instead ask: what should we do in the event of another?
The first thing is to defy it entirely, and maintain normality as far as we are able, hardening ourselves against the threats from government and the frowns of fuzzy-brained neighbours. We must forge connections with those who are of a like mind for the sake of mutual support.
“our next imperative is to become evangelists. We will be mistreated by the media and censored on line, so commence pamphleteering and try to bring one person to reason at a time. It worked well for Martin Luther and Thomas Paine”
If we can thus sustain ourselves, our next imperative is to become evangelists. We will be mistreated by the media and censored on line, so commence pamphleteering and try to bring one person to reason at a time. It worked well for Martin Luther and Thomas Paine. A child will consent to being locked down in his bedroom to avoid the bogeyman until, daring to step outside and goad it, he discovers it does not exist. In the same way, it must take courage and reason to expose the fearful superstition on which lockdowns depend.
“I was pleased to see the group’s commitment to resistance; to acting against such policies, if they were ever implemented again“
District Councillor George Pender (who represents Ash and New Ash Green in the District of Sevenoaks, Kent) gave a speech about mass surveillance and argued for the removal of Chinese Hik Vision security cameras from public space. George spoke from notes, so we can’t publish a text here, but he has written about the issue (with a greater reference to his own local area) here: https://georgepender.co.uk/articles/2022-07-parliamentarians-call-for-removal-of-hikvision-cameras/
Councillor Pender also spoke on Lockdown and wrote: I was greatly heartened by the first half of the event, focusing on how we can ensure that the kind of coercive polices we saw for two years following March 2020, can be firmly consigned to Britain’s past. I was pleased to see the group’s commitment to resistance; to acting against such policies, if they were ever implemented again.
” It was lovely to hear a beautifully constructed speech on the importance of beauty itself, particularly in art and architecture”
He also wrote in summary of the event as follows: It was great to hear the diverse range topics people addressed in the second half. I was pleased to be reminded of much of the deeper reasoning for, and benefit brought about by, the right to buy policy of the 1980s, which extended far beyond merely the leg up it gave to the individuals exercising the right. It was lovely to hear a beautifully constructed speech on the importance of beauty itself, particularly in art and architecture. I found myself being drawn into further agreement on the need for new UK nuclear, something which we see Government will remain in firm agreement on whoever wins the current Conservative Leadership election.
Mike’s speech on the importance of maintaining humility in local government was very convincing. This humility should lead us to prioritise the core functions of a local authority, while “getting out of the way” in many other areas. This was well illustrated by numerous convincing examples from Croydon, under Labour.
“My contention is that it is an outdated concept and selling off better social housing to private landlords and demolishing tower blocks would benefit the community”
The concept of social housing was introduced just over 100 years ago. It started with the intentions of improving the living conditions of renters but has resulted in replacing slums 100 years ago with slums today.
My contention is that it is an outdated concept and selling off better social housing to private landlords and demolishing tower blocks would benefit the community, by encouraging tenants into work, improve property repairs and create an economically mixed tenant base.
The Housing and Town Planning Act (Addison Act) of 1919 was the beginning of social housing in the UK, enabling local authorities to use government funding to build social housing for the working classes. The aim was to provide high-quality homes with gardens in greenfield areas, with indoor toilets and fitted baths for working families who could afford to pay higher rents. Local councils began to compulsorily purchase farms, using the land for development.
These houses were spacious but expensive to build. The next phase saw former slums cleared and replaced with flats between 3 and 5 stories high, being a cheaper alternative to family houses. These flats were also 35% smaller than houses but still had 3 bedrooms.
Construction stopped during WW2. At the end of the war, the government restarted replacing homes lost by bombings with prefabricated houses, which could be made off-site and quickly assembled. These prefabs were supposed to last for 10 years, although there are still some in existence today.
“the quality of construction diminished. Instead of “high-quality houses”, families were housed in high-rise flats”
Another cheaper solution was precast reinforced concrete, where unskilled labour could be used in construction. High-rise blocks of flats were developed using precast reinforced concrete.
So the quality of construction diminished. Instead of “high-quality houses”, families were housed in high-rise flats.
In 1980, the Right to Buy scheme was introduced, resulting in around 1 million homes sold in 10 years, with tenants buying mainly the better-quality homes. Council housing stocks diminished. The precast concrete properties were found to have structural issues and prospective purchasers had difficulty securing finance.
Councils were then left with poorer quality homes considered “hard to treat”. Councils were encouraged to hand over these properties to housing associations and other social landlords who could secure funding for regeneration works.
Private tenants do not have a right to buy – quite rightly in my opinion. However, they do have a proper choice of where exactly they want to live and the type of property that they want to live in, depending upon how much rent they can afford.
“Private landlords generally want to maintain their properties to a high standard as ignoring issues increases damage and costs in the long run. Most provide a much better repairs service than social landlords as they have a financial interest in the property”
Up until the 1980s, rent was collected weekly and repairs could be reported at the same time. Council officers would undertake a pre-inspection unless the job was routine and their own workmen would carry out the repair. As landlords, it could be said that councils were fairly hands-on. Housing associations used small, local contractors but would carry out pre and post-inspections. This gradually changed, so now most social landlords contract out their entire maintenance operations to large maintenance contractors, including reporting repairs.
Opportunities to examine high-maintenance issues, from “lifestyle” to building deficiencies can be overlooked.
Private landlords generally want to maintain their properties to a high standard as ignoring issues increases damage and costs in the long run. Most provide a much better repairs service than social landlords as they have a financial interest in the property.
In 1996, a total of 26.6m households in owner-occupied properties, 5.97m in social housing and 3.54m in private rented properties.
Statistics from June 2022 show a total of 26.62m households in owner-occupied properties, 5.94m in social housing and 8.72m in private rented properties. So the number of owner-occupied and social rented properties has stayed fairly consistent over the last 26 years, but the private rented sector has increased by 250%.
By May 2019, claimants of Housing Benefit had reduced to 3.6 million, while 1.1 million households were receiving the housing element of Universal Credit. 73% of HB recipients (2.6 million) were tenants in the Social Rented Sector and 27% were in the Private Rented Sector (970,000). So much for the working families who could afford to pay higher rents!
Social landlords are moving from being councils to housing associations. Although they are “not for profit”, chief executives often earn six-figure salaries, and most management boards are paid. Housing associations do not pay tax on profits.
There is a regulator of social housing, who is responsible for ensuring that housing associations are properly managed, given the scale of public funds that they receive.
“Competition between landlords to have the best properties and secure highest rents. Complete choice for tenants – you can live anywhere that you want if you can pay the rent”
Contrast this with private landlords who only receive tax relief at 20% on mortgage interest and contribute to the treasury with tax on their profits.
Social housing is allocated on “need”, so having children, medical problems and no job all help to secure a home. Tenants also must prove that they are the responsibility of that local authority. Contrast that with private landlords – referencing to make sure that tenants can afford the rent so preference for those in work. Competition between landlords to have the best properties and secure highest rents. Complete choice for tenants – you can live anywhere that you want if you can pay the rent. The incentive is to have a successful career and many private tenants go on to buy their own properties.
Dumping tenants with mixed social needs together on estates simply results in chaos. High rates of crime, gangs and drugs. Private landlords are usually in mixed owner-occupied / private rented areas, so less anti-social impact.
My contention is that if all social housing was sold to private landlords – not property companies but individuals – there would be less worklessness, less crime, better properties and more tax for the treasury.
Selling 5.9m properties at half average value would generate £800 billion. If each property generated a £5k profit annually, there would be an additional £6 billion in tax.
“I wrote in the Citizen about how plans to make Croydon a living wage borough, risks jobs at the proposed Westfield Shopping Centre, I note it has never been built”
The Licensing Act 1872 – among other things – stopped the practice of adding salt to drinks, which was originally put in beer to increase thirst and sales. This ‘improvement’ was made by the government to help us as consumers. I often think of how government intervention fails to improve things, as I pay for my own salted crisps to accompany a pint.
Words from my article for the Croydon Citizen from four years ago. The article was extensively about how Croydon Council had destroyed the bustling night time economy of the town centre of my youth, through a series of bright ideas to “improve the town”. These included a presumption to refuse new applications in the town centre for “premises used exclusively or primarily for the sale/supply of alcohol and/or loud amplified recorded music”. The council was thankfully finally reversing this initiative.
When they were running, I wrote in the Citizen about how plans to make Croydon a living wage borough, risks jobs at the proposed Westfield Shopping Centre, I note it has never been built. I also wrote about how the council spending £1.1 million on improving Surrey Street Market had led to over a 20% drop in traders.
“What business is it of mine if someone wants to build this? What business is it of Croydon Council’s politicians or officers if someone wants to spend their sweat and treasure on building this?”
At our last My Tuppenceworth, I spoke about how we needed a Democratically Elected Mayor of Croydon, we now have one. I now want to speak about how I implore that he and his council, leave my town, our town, alone.
We hear Westfield are once again looking to develop in Croydon. This is great news, and something is much needed. Now clearly the council needs to be involved in granting planning permission, and no doubt will need to weigh in on changes to roads, parking, and public transport. They have a statutory duty to be involved in these areas, beyond that, I ask they stay well clear.
“please Croydon Council stay out of their way. Beyond that, stop with any bright ideas, grand plans, and great initiatives”
The old Allders department store building, which before the council’s intervention had reinvented itself as a successful Village Outlet store, now has plans to become an arts venue. The idea of a venue where you can, too quote “lose oneself in art, beyond digital culture, where we can connect in the real world, in deeper and more meaningful stories.”, frankly sounds potty to me. But so what, I’m not their target market. What business is it of mine if someone wants to build this? What business is it of Croydon Council’s politicians or officers if someone wants to spend their sweat and treasure on building this? Their initiative is to be welcomed, but please Croydon Council stay out of their way. Beyond that, stop with any bright ideas, grand plans, and great initiatives. I’m sure if you just get out of their way, you will find many willing to invest in our great town.
“It is not always the same thing to be a good man and a good citizen.”
Solidarity, the Polish Trade Union, brought 10 million people together. It survived a period of martial law imposed to crush it and helped bring about the downfall of their Communist government. On November 9, 1989, it was announced that starting at midnight, citizens of East Germany were free to cross the country’s borders. East and West Berliners flocked to the wall. As the border guard in charge frantically called his superiors, they gave no orders. Overwhelmed he gave the command to “Open the barrier!”. Both of these serve as a reminder that by coming together people can achieve the seemingly impossible.
Mahatma Gandhi, said “Civil disobedience becomes a sacred duty when the state has become lawless or corrupt. And a citizen who barters with such a state, shares in its corruption and lawlessness.”
The Reverend Martin Luther King said, “One has not only a legal, but a moral responsibility to obey just laws. Conversely, one has a moral responsibility to disobey unjust laws.”
Or as Aristotle put it “It is not always the same thing to be a good man and a good citizen.”
“We need all of those who objected to any part of lockdown to come on board. We don’t need to insist on total agreement or compliance, after all we are not them”
I’m not sure if we can stop a future lockdown. My suspicion is government will be reluctant to impose another full lockdown. They will instead salami slice our freedom away with the imposition of more and more restrictions that never fully disappear. These will be much harder to oppose as each one will be minor and have some alleged practical argument in favour of it. Whilst we may not be able to stop them, we can disobey them.
We need to build a polarity if not a majority. We need all of those who objected to any part of lockdown to come on board. We don’t need to insist on total agreement or compliance, after all we are not them. We are the free, we are the people who believe in live and let live.
“we must once again, be not only free, but free from the fear of more government restrictions”
That means we will often find ourselves arm in arm with those we disagree with, and with whom we share little common ground. But the common ground we have, the area we can agree on, and the way we build a group large enough to oppose lockdowns, is by banding with those who all agree we must once again, be not only free, but free from the fear of more government restrictions.
We should never try to impose this on others, we may need sometimes to follow the rules and pick our battles. We should also never mock those who follow the rules. Instead, we can simply go about our lives as a free people regardless of what government says or others do.
If the restrictions come again, we can meet in the park as many have, or better still pop round to each other’s homes. If you can go into work, go in. We can meet-up on public transport or at the supermarket. With the exception of medical environments, refuse to wear a mask. We can’t go to the pubs if they are closed but bring a bottle and you are all welcome around mine for drinks.
We need to build networks of the widest set of people. Not those who agree with us 100%, but who agree on this one issue. In May we organised a hustings of otherwise disparate political parties who were all pro freedom and anti-lockdown. Despite their differences, on this overwhelmingly important issue, they agreed and came together. We must all do that, find that common ground with as many as possible, and defy anyone that ever tries to lock us down again.
Our second My Tuppenceworth turned out to be another great free speech event. We had 8 speeches on the night from 5 speakers, each followed by a lively Q&A. Where people have shared their speeches, we have published and linked to them below.
The first half of the evening was on the topic of “How do we ensure there is never another lockdown?”. The following people spoke on the subject:
“You might wonder did we get value for money? Well Croydon’s politicians who got to speak to the assembled crowd certainly came across as if they thought so. As an attendee I was less convinced”
The first Pride rally in London took place on 1st July 1972. That means this year’s Pride events are not only the first big events since 2019 and the hiatus of lockdown they also commemorate 50 years since that first U.K. event.
Croydon has hosted its own Pride event since 2016 when the first march went to Surrey Street, and we enjoyed a Council (Taxpayer) funded (to the tune of £30,000) party. Since then ambitions have increased, and in 2018 Croydon Pride moved to Wandle Park, where it was hosted again in 2019 at a cost of £65,000 to local taxpayers.
You might wonder did we get value for money? Well Croydon’s politicians who got to speak to the assembled crowd certainly came across as if they thought so. As an attendee I was less convinced my taxes subsidising the over £5 a pint drinks in a cordoned off area for Pride was the best use of funds. Of course, a few months later Croydon issued its first of two Section 114 notices, declaring de facto bankruptcy. Money that could have been spent on social workers protecting the most vulnerable children in the borough was instead spent subsidising my weekends entertainment. I didn’t want you to subsidise my weekend, I would rather the council spend the money on at-risk kids.
“Libraries have gone part time, Purley Leisure Centre is still closed, hundreds of jobs were lost, cuts were made to the anti-social behaviour team, yet still Croydon in 2022 appears to have found funds to sponsor Croydon Pride”
We’ve had two years of cuts to services and council scrutiny of budgets from central government. Libraries have gone part time, Purley Leisure Centre is still closed, hundreds of jobs were lost, cuts were made to the anti-social behaviour team, yet still Croydon in 2022 appears to have found funds to sponsor Croydon Pride. Now you might expect at this point I would state how much taxpayer funding had gone to Croydon Pride. Ideally, I might even be able to point you to a press release stating Croydon’s sponsorship but alas no. Despite Croydon being listed as a sponsor no record as I write this can be found of what funds are being paid from Croydon taxpayers for the 2022 Croydon Pride. I again attended the 2022 Croydon Pride and was more than happy that private companies choose to advertise to offset the costs of the event. This is exactly how these events should be paid for, by the market. If people think this is worth sponsoring, if they want to be associated with the event, let them pay for it.
“At a time when people are struggling to pay their energy bills, why should Croydon taxpayers on minimum wage be forced to subsidise anyone’s weekends entertainment?”
The average household income in Croydon is £37,000 p/a, which with an average property price to buy at £387,767 and a median rent of £1,450 pcm, it’s not clear why working class Croydonians should subsidise what is clearly a very middle class event. At a time when people are struggling to pay their energy bills, why should Croydon taxpayers on minimum wage be forced to subsidise anyone’s weekends entertainment? Especially when front line services are being shut down.
An afternoon spent in glorious sunshine listening to music, I very much enjoyed Croydon Pride 2022. I hope next year I can enjoy it more, knowing the event isn’t funded by forced subsidy from taxpayers and isn’t taking much needed funds from front line services.
Once I have been able to confirm the Croydon subsidy, I will of course let you know.
On Saturday 30th July we had a great morning out in Purley with the TaxPayers’ Alliance asking residents if they think Croydon’s former Chief Executive Jo Negrini was worth her £613,895, 2020-21 remuneration package.
The publics response was overwhelming and clear, with only one person saying they felt the former Chief Executive deserved the remuneration.
Firstly inflation must be defined by its cause rather than its effect, in order for the monetary authorities to enact a sound policy of recovery. Inflation; in the truest sense, is an excess increase in the money supply over the real demand for money (MS > MD). MD; which is an inverse of velocity, is measured by the quantity of nominal pounds sterling economic actors hold over a period of time, in order to acquire a higher purchasing power for future consumption. Meaning individuals are withholding current consumption in preference of future consumption.
This time preference is an important concept, as it is the foundation of what makes interest possible. Other variables may effect interest rates; such as high risk or time till final settlement, but it is the time preference for future/current consumption which lays the foundation. Despite Milton Friedman’s wise words, inflation is not simply a monetary phenomenon, but a monetary and time phenomenon.
The time difference between the stages of production to consumption, alongside the furlough scheme during the 2020 Covid outbreak, can help to better understand the financial cost and trade-off people now face, and what the monetary authorities should do.
The Hayekian Triangle above denotes the stages and time process of production, where the production process is hypothesised as an input-output process; ‘the horizontal leg is representative of the production time, and the vertical leg is a measurement of the value of consumable outputs’ (Garrison, 2001).
“Another way of looking at the nature of the high inflation rate, is that an excess of money has entered the economy faster than the production of goods and services”
As economic actors restrict their current consumption in favour of future consumption, a pooling of the social savings occurs. This results in a structural change in the multi-period production process, whereby the later stages of production face a contraction and the early stages face an expansion. This allows for the rate of interest to fall, as there are more financial resources available for loans, investment, and expansion.
By withholding from current consumption, earlier stages of production are permitted to expand, so consumers in the future will be able to consume more goods they value for a lower price.
This is what occurs under “normal” circumstances. Due to lockdowns and the furlough scheme however, distortions in the money and time market have been brought to bear.
Another way of looking at the nature of the high inflation rate, is that an excess of money has entered the economy faster than the production of goods and services.
This can be observed by returning to an adjusted Hayekian Triangle:
Here the darker triangle represents the production process during the covid outbreak and lockdown, and the scattered grey triangle represents current consumption. Due to the lockdown, production processes in many stages were halted, and with stimulus payments via furlough going to businesses to keep them afloat and to ensure workers could still receive pay without productivity, the money supply was increasing faster than production was growing, because production was immobilised.
So why are we only now feeling the effects of inflation?
The distortion effects of inflation are not felt instantaneously, because money circulates through the economy at differing velocities for different sectors. This is why it is important not to only look at the average rate, but to look at all the price changes for the goods within the basket; this helps to identify where the excess money is circulating to-from, and how much.
Therefore not all price distortions will be the same; some will rise faster than others, some much slower; others may increase by larger percentages while goods valued less may increase by lower percentages.
This is seen by looking at the basket of goods for the CPI and PPI input goods, from the report of March 2022:
As shown above, the most extreme changes in the CPI and PPI reports were 31.4% for housing and household services, and 98.0% for crude oil, with a range between the extreme upper and extreme lower for both being:
The average rate of change shown in CPI and PPI reports is the mean (x̄), and is calculated by adding the total % changes to one sum then dividing by the number of goods in the CPI and PPI baskets:
For the CPI:
Furthermore we can visualise the spread of the price distortions by using a dotplot:
Getting back to the matter, the low rate policy of the Bank of England, and the remaining high tax rates are not effective policy measures for curbing the rising inflation.
“it is saving and investment that will help fix the distortions, by allowing for secular growth deflation”
The high tax rates leave consumers with less expendable income, meaning their cost of living is forced up and are less inclined to save. Moreover, government spending contributes to circulating excess money supply, and simply changes the makeup of our GDP. Instead of goods consumers want, we get more of what government wants; instead of more houses and petrol, we get more ditches being dug up to be refilled.
Additionally the low rate policy of the bank of England fails to address that the excess money is being spent faster than is being saved; a low rate of interest fails to reflect not only people’s expectation of higher inflation to come, but the preferences economic actors presently hold for current consumption.
So what should the monetary authorities do?
With the current rate of interest being 1.25%, adjusted for inflation the real rate is in the negative; as is calculated:
The Bank of England should aim to raise interest rates to a minimum of 13.5%, so as to ensure after adjusting for inflation, the real rate would not be in the negative, but would sit at 4.4%. This would help to properly signal that now is an appropriate time to save, and assist in incentivising the private sector into such actions. This would also, in principle, help curb incentives for banks looking to take high risk loans.
By increasing the interest rate to a nominal level of 13.5% for non outstanding loans, savers and investors will see there is a high demand, so as to allow earlier stages of production to expand for high levels of future output.
Additionally, the government should temporarily freeze VAT and sales tax in order to reduce the tax burden on consumers during the cost of living crises.
Finally, the government should temporarily freeze the capital gains tax until inflation is brought down to its target rate of 2%. This would ensure that investors receive 100% of their returns, providing a further incentive for large scale investments into expanding production processes and creating new, value inducing jobs.
The inflation and cost of living crises were created by large injections of money into the economy, and it is saving and investment that will help fix the distortions, by allowing for secular growth deflation.
Despite the Keynesian “paradox of thrift”, increased saving is not a decrease in economic activity, but a dynamic process that invests in a wider, more affordable future consumption.
