Publications: Economy and Industry
This paper argues that there has been virtually no structural reforms to the financial sector since the financial crisis of 2008. Despite the organised gambling and anti-social practices by the banks which undermined the stability of the entire economy, it remains business as usual for the financial elite. The corrosive effects of neoliberalist values have been most evident in the financial sector, where profits have been made from selling abusive financial products, money laundering, tax avoidance, sanction busting, speculation on commodities and land, takeovers and insider trading. There are no constraints on speculative activities and financiers routinely gamble ordinary people’s savings and pensions on an unprecedented scale. This reckless gambling produces little, if any, real additional wealth, but its destructive effects have had serious consequences for the average household and the wider economy. The financial sector has colonised the state in such a way that political power has been subordinated to corporate interests. Through their capture of the state, neoliberals have diluted, if not eliminated, the risk of business bankruptcy in the financial sector. There is an urgent need for reforms that check the worst excesses of neoliberalism by strengthening democratic control and accountability in the banking sector.
Our factsheets feature the best articles, the most relevant statistics, and the most up-to-date information to get you clued up on the issues everybody is debating. This factsheet focuses on bankers' bonuses - set to be big news in the coming weeks as RBS gears up to award its staff massive payouts.
The authors of this Class and Institute of Employment Rights joint report set out a timely argument for the introduction of a statutory framework for collective bargaining. Keith Ewing and John Hendy trace the historical background to the current economic crisis – including the dismantling of trade union rights by successive governments since 1980 – and set out a viable alternative for economic growth based on international law and best European practices. The end result is a considered and fully evidence-based policy recommendation summed up in a succinct ten point manifesto for collective bargaining.
Exposing the myths that austerity has 'saved the economy', 'reduced debt', 'brought down borrowing' and 'kick-started recovery' - this Class briefing gives the facts and realities behind the lies. This pamphlet has been produced to expose the Coalition Government’s lies and prove that there are alternative routes back to jobs, higher living standards and economic recovery. Austerity hasn’t worked and it won’t work.
Self-regulated payday lenders have exploded on the consumer credit scene since the recession and financially vulnerable individuals are now starting to feel the impact of this new type of lender on the high street. This paper shows that over a million people took out payday loans in 2012. Much of this borrowing is to pay for food and other essentials or bills – not the outcome of financial imprudence that some would have you believe.
This paper argues that our current land economy does not serve us well. In response, it proposes a Land Value Tax for the UK. A Land Value Tax, targeted at unproductive wealth and speculation, could help deliver the house-building revolution – and the economic revival – our country desperately needs. In the end though, the proposition is simple. The few who own this land of ours should not get off tax-free while too many people cannot afford a decent home.
This paper seeks to show that the policy of austerity that has increased idleness and has now given rise to the additional problem of disguised underemployment, makes no economic sense. Focusing on fiscal and taxation policies, Richard Murphy and Howard Reed argue that, as in Beveridge's time, the global recession now provides another revolutionary moment in which new thinking is required.
For more than thirty years the politics of the UK and most other western democracies has been dominated by a notable and consistent adherence to a single consensus on tax issues. But as this paper makes clear, there are clear economic and social arguments for progressive taxation. The counter-arguments are weak. However, the gains for society that progressive taxation can deliver are dependent upon creating a new social consensus. Tax could be the means for building that 21st century economic consensus and this paper sets out a research and policy programme that could create that agenda.
In his paper for Class Prof Malcolm Sawyer explains why the austerity programme is economically irrational, socially irresponsible, and fundamentally lacks credibility in its central goal of reducing the budget deficit. He argues instead that the reduction of the budget deficit can only come from a revival of private demand which is harmed by an austerity programme.
This Think Piece argues that if the UK is to achieve a sustainable recovery from the current financial crisis, the wage share needs to be restored to post-war levels and the great concentrations of income and wealth broken up.