REPORTING OF PROPERTY & HOUSING ISSUES

Whilst my previous post noted that media reporting of economic and labour issues had been in decline since the 1980s, the subjects of property and housing, and particularly the latter, have attracted more and more media attention, sometimes, it seems, to the exclusion of all other news. The present furore over the Government's proposed changes to housing benefit, following an earlier announcement to cut funding to housing associations and expressed desire to phase out social housing illustrate this very well.

In stating my provisional support for social housing, I also want to share my experience of some its problems through recounting a short history of the flat next door to my former London home.
Soon after purchasing this property, the owner "inherited" the tenancy to a nearby council flat into which he then moved, leasing his own flat to the local authority. A range of housing benefit claimants were placed in this property, one of whom, an Irish lady, also had access to another nearby council flat, and so sublet the one bedroom flat next to me to a large family from Nigeria. At various points, I drew the attention of the local authority to what was clearly housing benefit fraud, and they usually acted on the matter. Incidentally, I owned the property in which I lived, although it was suggested to me on more than one occasion that I was a council tenant, possibly because other owners in the block had entered into arrangements similar to my neighbour.

So we come back to another subject which has received much attention in recent years: regulation. It is the regulation - from policy to enforcement - of property and housing which really needs to be tackled by politicians and in the media, so that "issues of the moment", no matter how important, can be objectively considered in a wider context, and people like the Mayor of London do not have to resort to using highly intemperate language.

However, London does indeed have a particular set of housing issues, some of which have been adequately covered elsewhere, so I don't proposed to dwell upon them here. One issue which has not been fully covered in the media relates to my previous post on "labour issues": low wages. London is producing a great many low paid private sector jobs, many of which are directly in highly paid-sectors such as banking, or in services linked to these. Instead, therefore, of paying some of their employees increasingly high amounts, might I suggest that City institutions provide housing for their less well-paid but nevertheless essential workers.

With regard to the very high levels of housing benefit paid to residents in some areas of London, I would also suggest that this is as much a problem of the type of buy-to-let market which has developed in London, as of individual recipients of state support. To put it bluntly, the beneficiaries of large housing benefit payouts are as much, if not more so, the owners of the properties themselves: something the media, once again, has not properly acknowledged.

REPORTING OF ECONOMIC AND LABOUR ISSUES

Having given vent to "My Inner Yahoo" - a creature of Swiftian satire rather than the new media kind - in my previous post, readers should be warned that I shall be writing in a highly serious vein today. Nevertheless, my critique of Britain's ruling classes - the media, bankers, bureaucrats and politicians et al - will continue.

Last weekend brought media coverage of two symbolically important events, the near demise of "The Work Foundation", due to pensions obligations, and the discovery of Roma children working in the spring onion fields of Worcestershire during a spell of particularly cold autumn weather. The Work Foundation has, as it happens, been rescued by the University of Lancaster, and the young Romanians by the Gangmaster's Licensing Association in conjunction with West Mercia Police.

However, the wider economic and labour context which has thrown these two disparate events into relief has not, and almost certainly will not, receive the receive the media coverage that it merits. The reasons for this are complex: journalism which tackles economic and labour issues in a comprehensive way has been in retreat since the 1980s; people's lifestyles rather than their employment tend to be the focus of media attention; most people are no longer part of an organised labour movement.

Yet there are very good reasons why a more traditional approach to the reporting of economic and labour issues is called for at the present time. For Britain, and England in particular, is not only recovering from a financial crisis induced recession, but also from a period of government under New Labour when is was extremely difficult in matters of the economy, and political economy more specifically, to distinguish facts from fictions, and truth from ideological distortions. Moreover, the British media for much of the decade between 1997-2007 colluded in this process.

Unfortunately, there are strong indications that some within the present Government regard themselves as the "Heir to Blair", and the media management school of political economy as practiced by New Labour but with a somewhat different ideological emphasis, has already sprung back into action. Whether the Secretary of State for Business, Skills and Innovation, and others of a more objective outlook within the Coalition, can steer the nation onto a more broadly-based path to economic regeneration, as distinct from from another financially engineered spurt of growth, remains to be seen.

In the meantime, the media - and indeed the Coalition Government - should pay close attention to "labour issues". Perhaps an analogy with New Labour's attention to matters of property, normally the focus of Conservative policy, is appropriate here, if David Cameron really wants to claim the "Heir to Blair" legacy.

DROP THE DEAD DONKEY

Checking out two news stories on the Telegraph website yesterday, both on the subject of "drops" - the ongoing drop in house prices and a "surprise drop" in consumer spending - I soon found the "Comments" more interesting than the main articles; and particularly this advice from "Jacqui" quoting "Descartes, Discourses on Method": "Accept nothing as true, unless clearly recognised as such." My sentiments exactly !

The "Discourses" revealed that most people weren't at all surprised by the drop in consumer spending, and nor apparently were "the markets" whom the Financial Times report, quoting one lunching - albeit at his desk these days - stockbroker "only respond to surprises". What does "The Old Lady of Threadneedle Street" make of these imprudent hussies of today's markets I wonder, when they can't even register a drop in the sales of lingerie ?

Nevertheless, the price of lingerie has undoubtedly come down in recent years, almost certainly an achievement for "The Spender of Last Resort": to quote another commentator called, I think, "Princesschipchops" (surely the pseudonym of a female impersonator !). My guess is that house prices will follow a similar downwards trend, a bit like those pants that barely covers the buttocks, and which the young seem to favour and the middle aged and over to revile.

If some readers wish to deduce from the above account that I think the bottom may yet fall out of the housing market, please feel free to do so. My own guess is that there are some within the present Government who would like to see a further downward adjustment in property prices, and others who would not: a political reflection for once of the position of wider society. In the meantime, "The Old Lady" should surpise the bankers by witholding money from their hussies.

THE PROBLEMS OF KING & PARLIAMENT

The Governor of the Bank of England's sobering advice of yesterday was blatantly ignored in the unruly behaviour of the UK Parliament today, whose benches sounded as if they had been taken over by a multitude of Swiftian Yahoos when Shadow Chancellor Alan Johnson endeavoured to respond to the speech of George Osborne.

My present feeling is that neither the mild-mannered King nor the unruly Parliament are up to the tasks required of them.

The New Spirit Level of the Real Global Economy

The following article appeared in last Sunday's Telegraph newspaper: http://www.telegraph.co.uk/finance/comment/jeremy-warner/8057069/Jobless-America-threatens-to-bring-us-all-down-with-it.html

Comments are still coming in - some not very politically correct - and along with the original text make for interesting reading. One respondent wonders where all the money is coming from to prop up the United States economy.

The answer of course lies in the labours of overseas workers, and their financial fruits to foreign governments: notably China, increasingly banker to the US.

This is now "The International State We're In", as indicated in my reprinted post of yesterday.

So if political folks over here are getting excited about a new book called "The Spirit Level" - profiled on BBC Radio 4's Analysis yesterday - might I suggest that they also think about the wider international implications of this book's message concerning the benefits of increasing socio-economic equality.

For I would suggest that "The New Spirit Level of the Real Global Economy" is going to be very challenging indeed for many people in the economies of "The Old West", and that their governments, including our own, need to "get real" in responding to this situation sooner rather than later.

THE ECONOMICS OF FAIRY DUST REVISITED

The Coalition Government's policy of continued "quantitative easing" reminds me of a post of six month's ago from my alter ego "The Witch of Worcester": @ http://www.witchofworcester.wordpress.com/

"Writing in The Observer last Sunday (11 April 2010), the former newspaper editor Will Hutton bemoaned the lack of any real content in the current British General Election campaign, and the fact that the euphemistically named government policy of "quantitative easing" - ie pumping £billions of public money to prop up the banking sector - was reinforcing structural problems in the UK economy: namely, the dependence of this on the financial and property sectors.

Commentators on the article - including this one - seemed to have found much to agree with. However, I have to take issue with Hutton's assertion that the British have all been living on fairy dust - ie asset price inflation largely constructed on increasingly sophisticated financial systems, which also provided unprecedented levels of consumer credit - for the past 20 years. For there is another dimension to "The State We're In" - also the title of a book by Hutton published around the time of New Labour's election in 1997. The other side of the story is, of course, the hard labour of people in low wage countries, notably - but not exclusively - China which has produced the cheap, but nevertheless high quality, consumer goods of which we in countries like Britain and the United States are so enamoured. I therefore find it strange that Mr Hutton, now identified with the UK-based Work Foundation, should have apparently overlooked the labours of these multitude of overseas workers in his article, given that their production has underpinned, more substantially than the speculators as it turns out, the long boom from early 1990s to the late noughties.

During this time, Britain has been living not so much on fairy dust - attractive although this analogy may be to one concerned with non-material realties - but on the hard labour, and to a significant extent the savings, of people living in less-developed countries. However, I would argue that this process has not delivered the advantages at home or abroad that are frequently advanced. We are all now aware that the kind of growth which the consumer revolution has brought to China poses not only grave environmental problems for the rest of the world, but has also suppressed, and in some cases destroyed, the development of industries in other countries, including our own. Moreover, there are an increasing number of people within China who would like to see their country take a different development path, which is less reliant upon Western consumers, and the economics of fairy dust."

VICTORY FOR MILIBAND VS THE MEDIA

Congratulations to Ed Miliband and Alan Johnson for foiling the British media's attempt to foist one or other of the Ed Balls-Yvette Cooper husband and wife couple in to the role of Shadow Chancellor, and sending them on their separate ways as shadow spokespersons for Home Affairs and Foreign Policy.

It's great to think that a sense of humour - as well as some common sense - might have been restored to Labour Party politics at long last !

OLD LESSONS OF THE NEW IRISH PROBLEM

This image from the Wikipedia Media Commons depicts the "Famine" sculpture in front of Dublin's financial centre.

Created at the height of the credit boom, when Dublin was amongst the four richest cities in the world, this artwork now symbolises the "feast to famine" cycle of the modern Irish economy.

For some, last week's Irish Government bailout of the banking sector may recall the country's earlier potato famine, but the lessons are much closer to home.

In short, "The New Irish Problem" - as I'm going to call it - shows the folly of a small country adopting the "growth policies" of a much larger one, namely the United States.

For in Ireland, the problems of an overly large and inadequately regulated financial sector as well as a highly speculative property market - problems which the country shares with the United Kingdom - have been made far worse by a lax planning regime and lending to the construction sector, mixed up with some good old fashioned corruption.

UK Coalition Government and "Next Generation Labour" please take note !

For if the previous administration had succeeded in fully implementing its plans for massive volume house-building, the outcome would almost certainly have been akin to the property market collapses in the US, Ireland and Spain, which followed similar policies.