A small step in the right direction

Following the General Election, and five days of discussions, the Liberal Democrats have negotiated a referendum on electoral reform, as part of a coalition of the type not seen for over 70 years.   Whilst not a proposal to move to full proportional representation, the alternative vote (AV) is at least one step forward towards 21st century democracy.  

Most countries around the world already have such systems, and their political parties are quite used to working together as part of a coalition.  Parties have to work together and compromise, and make sure key policies are sufficiently scrutinised and prioritised, rather than simply 'nodded through' or 'pushed through' by party whips.  The effect of this is already starting to appear, with compromises already on the make up of Government (e.g. Shared cabinet), electoral reform (e.g. AV referendum) and economic policy (e.g. with lower rate tax thresholds taking priority over providing inheritance tax breaks for the rich) for the greater good. Rather than a 'hung parliament' in my humble opinion a better description is a 'balanced parliament'.

A new system based on fundamental 'values' such as fairness, responsibility and respect is also a good start, but there is a great deal to do and far more will be needed.  The challenge (particularly for the Liberal Democrats) is to now show how effective a UK coalition Government can be, showing how 21st century politics could work for the benefit of the people, as if they do not electoral reform will fall at the first hurdle - i.e. in the referendum itself.  One thing is certain, the Tory dominated press will take any opportunity to attack any change to the voting system. The Conservatives did not want to see a referendum on the voting system (as the 'first passed the post' system serves their party, and the labour party, so well), and will I am sure argue strongly against it when it comes to the referendum.  The press tried hard to push for a majority Conservative Government so they could avoid such concessions, but even with the clear headwind provided by an unfair voting system, they did not succeed.  

The voice of the people was still sufficiently large to demand compromise and coalition - and 21st Century democracy. There's a long long way to go ... and many challenges ahead ... hence we wish our new leaders, and everyone in the UK, every success in bringing this about ... and in successfully turning our economy around.

Can we have 21st Century Democracy Now

Given the current state of Politics, and the need to engage/involve people in order to create a 21st Century democracy, the time for change is now ... and no single person(s) should/can ignore the will of the people.  Protests are growing demanding change and this will continue to increase until change happens.  It's a referendum we need, giving people real choice, not yet another hand selected committee to pontificate for years and whose conclusions are only ignored in the end anyway.  

Groups such as Power2010 and Take Back Parliament lobbied Politicians in London today, handed in a petition, demanding change and for Nick Clegg not to 'sell out' (to those who are used to Power and misuse that Power).  Clegg came out to talk to the groups, and made it clear he came into to Politics to reform Politics.  Let's hope he continues to demonstrate 21st Century values (e.g. Trust, Honor, Respect), staying strong and true to his word ... and taking responsibility for heralding in a new 21st Century democracy.

To Petition the New Prime Minister you can sign the e-petition requesting People Democracy here too (open for signing once they take office).

Taxes about to rise sharply

Taxes must rise sharply over the next decade to bring down borrowing, according to the National Institute of Economic and Social Research (NIESR).  In a report, the think tank said taxes would have to rise by the equivalent of 6p on the basic income tax rate to get the budget deficit below 3% by 2020.

It also said the UK economy faces sluggish growth and rising unemployment this year. The BBC's Nils Blythe said that although the large additional tax rises needed to get the budget deficit below 3% by 2020 would not necessarily come in the form of income tax increases, the think tank reasoned that the scale of the rise is equivalent to putting up the basic rate of income tax from 20p to 26p in the pound.

"Only with that type of increase will the national debt eventually fall below the 40% of national income that before the financial crisis was regarded as a prudent level," he said.  The think tank also said cuts to public spending, which will be necessary for cutting the size of the budget deficit, will push growth lower than it otherwise would have been.  

More reality/truth is slowing filtering out ... just not from the Government.

Two revealing 'private' conversations

'Private' Conversation 1

Yesterday in Rochdale Brown exposed his true self, saying he wanted to meet/speak to the general public (instead of a group of stage-managed supporters), presenting a (false) smiling image and talking to a concerned Grandmother Gillian Duffy.  Forgetting his microphone was still on he then left and proceeded to his car, calling the whole event 'a disaster', blaming organizers and calling the Grandmother he'd spoken to 'bigoted'.  Brown initially tried to deflect it, but his head once again had to fall into his hands as he was confronted with his own words live on Radio.  I'm afraid this person, never elected to be leader of the country, and who as chancellor is also personally responsible for creating the crisis, clearly demonstrates Poweromics (A person using position and power for their own personal gain, based on poor moral values, self interest and greed).  Indeed in the final leaders debate tonight he demonstrated this further, e.g. deflecting blame, hiding the truth, lying to people and trying to creating fear in the electorate.  He continually focused on highlighting the risk to tax credits, the system he personally created as Chancellor (using borrowed money) to systematically increase dependency on his party in order to strike fear in people tempted to vote for anyone else - however it does not appear to be working. For instance the Liberal Democrats have made it clear they are only considering reducing it for those earning over £50k and far more people are starting to see through Brown's veneer and not listen to him anymore.


'Private' Conversation 2

David Hale, a US economist, has claimed that the governor of the Bank of England told him "tough" budgetary measures would be necessary in the UK. He said Governor Mervyn King had said the measures would keep whoever wins the next election "out of power for a whole generation". The Bank of England refused to comment directly but confirmed the two men had a private meeting early last month. Mr Hale, who said he met the governor in London last week, said that the Governor told him that if the government failed to come up with a credible plan to reduce the budget deficit (one of the highest in Europe) the UK's credit rating would be downgraded - increasing uncertainty about the outlook for the uk economy and its ability to pay back its debt. The parties have already been criticised by the Institute for Fiscal Studies for not providing enough detail on their plans and Mr King's reported remarks suggest that some senior policymakers think the deficit reduction plans will have a big impact. The road ahead is now increasingly clear to everyone ... though only through another 'private conversation' being exposed.

Spending cuts to be deepest since 1970s

Following my recent post (Apocalypse-postponed), it is now being made increasingly clear that, whoever wins the election, massive spending cuts are going to have to happen on a scale not seen for generations.  This will once again hit the economy, as well as the well-being of individuals and communities, and move the UK into the next stage of the crisis.

It will hit front-line services (particularly if 21st century management practices are not adopted), reverse the so-called recovery, reduce employment, reverse house prices, and steer the economy into another downward spiral (a double-dip recession). These will all also be exasperated by rising interest rates to pay for spiraling government debt (nb reducing the deficit does not reduce the debt, it just means the debt is increasing at less of a rate!), the risks associated with a flawed/unsustainable economy, and rising price inflation due to foreign exchange rates (and the huge rise in the price of oil).

Greece is starting to feel the pain and frustration/unrest is starting to grow ... and the UK is going to have to act effectively (e.g. introduce 21st century leadership/management and economics) quickly now if it's going to avoid this type of pain/unrest itself in the future.