The Failure of Rent Control

 In September 2022, Nicola Sturgeon announced a six-month rent freeze and an eviction ban, as part of emergency legislation brought in to deal with the cost of living crisis. For many Scottish housing campaigners – and indeed everyday tenants – the news was welcomed with enthusiasm.

The small print, though, of the Cost of Living (Protection of Tenants) (Scotland) Act 2022 contained important caveats. For one, the freeze would only apply to existing tenancies across Scotland – there was no cap on what could be charged for a flat put on the market. Social tenants with arrears of more than £2,250 could still be evicted. And a temporary freeze was assuredly not the same thing as long-term rent controls.

It was reported last year that average rents had increased above inflation in seven Scottish areas before the freeze came in. It’s fair to question the effectiveness of a freeze that simply locks in what are, for many, already unaffordable rents. This is in a country where about 37% of households live in rented accommodation.

Demand is at 2.5 times the UK average. To live in Glasgow when the average rent of a one-bedroom flat has jumped 48.3% between 2010 and 2022.

 At the start of the month, new figures showed that rents in Dundee had soared 33% in a year, putting the city having the second steepest increase in the UK, with the average monthly cost of a room in Dundee now £587.

Matt Downie, the chief executive of the homelessness charity Crisis UK. Though it welcomed the Scottish government’s decision to take action to protect tenant explained, “the rent freeze contained in the emergency legislation represents a sticking plaster on a much bigger problem”.

In late January, the Scottish housing minister and Green party co-leader Patrick Harvie announced that the legislation would be extended for at least a further six months, from April to the end of September. Only now, the private-sector freeze would be scrapped and replaced with a 3% cap (the freeze on social rents will also end in April, with the voluntary agreement that landlords keep any increases to below inflationary levels of 11.1%). Despite this fairly bold U-turn, broadly interpreted as a concession to the landlord lobby, there is still an extreme unhappiness among landlords.

In 2019, the Scottish house conditions survey showed that 52% of privately rented homes in Scotland were found to be in a state of disrepair.

What happened during Scotland’s rent freeze? Landlords fought back | Francisco Garcia | The Guardian

Spare A Copper, Guv’nor?

 



“UK households are suffering a “permanent” decline in living standards as wages lag behind double-digit inflation and families struggle to pay their bills, the National Institute of Economic and Social Research (NIESR) has warned.

According to a forecast by the UK’s oldest independent economic research institute released on Wednesday, 7 million households, which is the equivalent of one in four, will be unable to cover their energy and food bills once the government starts scaling back its subsidies program in April.

Energy prices remain high, while inflation is running above 10%, more than five times the Bank of England’s 2% target. NIESR said the target will not be reached until the second half of 2025.

Grocery inflation alone soared to a new record of 16.7% in the four weeks of January, taking the average annual food shopping bill in the UK to £5,504 ($6,781), up £788 ($974) from last year, according to the latest research by Kantar.

NIESR economists warn that middle-income households will be hit hardest by the cost-of-living crisis. While the poorest families receive additional state aid, the middle classes will face a decline of between 7% and 13% in their disposable income, or as much as £4,000 ($4,800).

“What we’ve seen is that the shocks that have come along have progressively made us poorer per person,” said NIESR director Jagjit Chadha.

Although the institute believes the UK will narrowly escape a recession, it predicts the country will see “anaemic” growth of just 0.2% this year before GDP rises 1% in 2024 and 1.6% in 2025. For millions of households it “will certainly feel like a recession,” NIESR warned.

“This malaise seems to be affecting large parts of the advanced world but on many measures the UK looks as though it’s towards the bottom of performance and I think that’s a great concern,” said Chadha.

Earlier this month, the International Monetary Fund said that Britain will have the worst economic performance among other major industrialized nations, and will become the only G7 member to face a recession this year.”

https://www.rt.com/business/9\2\23

Dave C.

The Golden Parachute

 Boris Johnson, the former prime minister, declared income since leaving office last September is £4.8m.

The £4.8m in earnings that Mr Johnson has declared since leaving No 10 just over five months ago is more than 50 times his yearly £84,144 MP salary.

A company set up to support his activities as a former PM has also received £1m from cryptocurrency investor Christopher Harborne.

Mr Harborne has previously donated more than £15m to the Conservatives, the Brexit Party, and Reform UK.


Boris Johnson nears £5m in earnings since leaving office – BBC News

The Earthquake

 Six days on after this tragedy rescuers are still finding people alive in the rubble.  Thoughts turn to the efforts being made to save other people.  

Rescuers are working 24/7, many are volunteers actively working in the finding survivors, while others are helping with aftercare.  Then there is the international effort by charities, worldwide the working class will be donating money and useful goods for others who have lost everything.  

17000 dead so far, many lives have been devastated and people urgently need help to stay alive.  The cooperative effort is to be applauded for the humanitarian effort, which socialists would endorse.

However, what we are against is the shoddy building of homes that were built short of the required Turkish building regulations.  On the whole it has been newly built buildings that have collapsed because, of the lack of enforcement of these building regulations.  One can see on the news broadcasts that there are many buildings still standing!  These buildings no doubt had the required earthquake protection, which was missing from the newer buildings.  


Again the capitalist mentality puts profit above keeping people safe in their home, a story that’s common place in this system of wage slavery and profit at any cost !


MT

Syria Side-Lined for Earthquake Aid

 Rescue teams and volunteers from around the world have made their way to Turkey, medical volunteer Obaida Rannoush called out the inaction of the global community when it comes to his country, Syria. In northwest Syria, the sluggish international response is a matter of life or death for hundreds still trapped under the concrete of collapsed buildings.

“I call on the international community, the Arab countries, and the United Nations to urgently help us,” he said, standing by the Bab al-Hawa border crossing. “More than 60 hours after the quake took place, there are still hundreds trapped under the debris. We cannot rescue them because of our meagre resources. We need heavy machinery, humanitarian and medical aid.” He went on to say, not a single humanitarian convoy has crossed the border. “We have not received any kind of assistance,” Rannoush said. “We are standing here by the border crossing to ask for humanitarian aid so we can save some of the people under the rubble.”

The lack of response has prompted dozens of Syrian journalists to stage a sit-in at the Bab al-Hawa crossing.

Mazen Alloush, head of media relations for the Bab al-Hawa border, said millions of Syrians have been affected by the earthquake and its aftershocks. “The crossing has been closed since the earthquake took place,” he said. “We know that the UN aid is stored in the Turkish city of Reyhanli, which is just one kilometre away from the border crossing,” he added.

“No aid has entered [north Syria] through any of the corridors,” Abdul Razzak Kentar, programmes manager at the Syria Civil Defence.

Is it politics first, aid second? 

Medico International’s Anita Starosta explained, “The aid that was being delivered before the earthquake was not sufficient and sometimes it never even arrived. Now it’s winter and very cold. That means that now, more than ever, people in the displaced persons’ camps here, and also in the areas in Idlib that have been destroyed, are dependent on international help.”All this will depend on one thing, Starosta added. “Whether Turkey opens a humanitarian corridor, to bring people who are fleeing the area to safety, or whether the country sticks with its political position and keeps the borders closed,” she said. “Unfortunately we expect the latter to happen.”

All those Syrians in the country affected by the earthquake simply have to wait — for help to arrive or political decisions to be made, even as time is running out to find survivors.

The U.S. made it clear that it was only willing to support some work carried out in Syria by NGOs, but that it would have no dealings with the al-Assad government.

The head of the Syrian Arab Red Crescent, Khaled Hboubati, has requested that Western countries, specifically the U.S. and its allies, lift their siege and sanctions on Syria so that rescue and relief work can proceed unimpeded.

“We need heavy equipment, ambulances and fire fighting vehicles to continue to rescue and remove the rubble, and this entails lifting sanctions on Syria as soon as possible,” Hboubati said.

Syrians denounce failed aid response after devastating quake | Earthquakes News | Al Jazeera

Profit not Planet

  



The five largest western oil and gas companies alone making a combined $200bn in profits. When the 2022 results for all publicly traded oil and gas companies are tallied the total profits are expected to exceed $400bn

The “big five” – Exxon, Chevron, Shell, BP and TotalEnergies – all revealed that last year was the most profitable in their respective histories.

Exxon, the Texas-based oil giant, led the way with a record $55.7bn in annual profit, taking home around $6.3m every hour that ticked over last year. California’s Chevron had a record $36.5bn profit, while Shell announced the best results of its 115-year history, a $39.9bn surplus, and BP, another London-based firm, notched a $27.7bn profit. The French company TotalEnergies also had a record, at $36.2bn.

“…built off the backs of working families who were victimized by oil and gas executives’ greed”, according to Claire Moser, deputy executive director of the US activist group Climate Power.

The big five oil and gas companies have already confirmed that most of the bumper profits will be going to stock buybacks and dividends. The $200bn in combined profits equates to around five times the US’s annual foreign aid budget

Last year, more than 1tn dollars were invested in fossil fuel infrastructure and extraction worldwide.

António Guterres, the secretary-general of the UN, was scornful of the industry in a speech, in which he expressed incredulity at the “monster profits” of fossil fuel companies at a time when the world needs to be rapidly slashing its planet-heating emissions to avoid climate breakdown

“If you cannot set a credible course for net-zero [emissions], with 2025 and 2030 targets covering all your operations, you should not be in business,” Guterres said. “Your core product is our core problem. We need a renewables revolution, not a self-destructive fossil fuel resurgence.”

The sale of oil and gas remains so enticing that BP this week announced it is scaling back its climate ambitions, retaining its fossil fuel assets for longer than it previously expected. 

 Said Bernard Looney, BP’s chief executive, “At the end of the day, we’re responding to what society wants.”

“If the bulk of your investments remain tied to fossil fuels, and you even plan to increase those investments, you cannot maintain to be Paris-aligned, because you will not achieve large-scale emissions reductions by 2030,” said Mark van Baal, founder of Follow This, an activist shareholder group. “The picture is clear now, no oil major has plans to drive down emissions this decade. Now it’s up to the shareholders. Together with major investors, we continue to compel BP to put its full weight behind the energy transition.”

‘Monster profits’ for energy giants reveal a self-destructive fossil fuel resurgence | Fossil fuels | The Guardian





SPGB Features on Fox News

 

Socialist Party of Great Britain rebukes Congressman who warns of the dangers of socialismSocialist Party of Great Britain claps back after a U.S. resolution in Congress condemned the political system

The Socialist Party of Great Britain fired back at a U.S. congressman after the House of Representatives passed a resolution condemning the “horrors of socialism,” claiming that “No country has ‘tried’” it yet.

In a speech on the house floor, Rep. Mike Flood, R-Neb., touted the resolution as a positive move in the fight against socialism, which he posted to Twitter. 

“I have seen the victims of socialism firsthand, many of those victims have found refuge in Nebraska,” Flood said. 

“History shows that when socialism is tried it leads to three things: poverty, devastation and ultimately communism,” he added. 

“No country has ‘tried’ socialism,” the political party tweeted. “It has NOT YET STARTED. Ever heard of Karl Marx and Friedrich Engels? This class-free, state-free, money-free society comes about only AFTER capitalism has been rejected by working class populations.”

The SPGB also tweeted a photo that said “Which countries have tried socialism? None. Socialism has not yet started. Marxist social comes AFTER global capitalism is abandoned. This has not yet happened!”

The group also posted a definition of socialism that read “A moneyless society without any ruling class whatsoever, where all the people collectively and directly owned the natural resources, industries etc and democratically controlled how they were used; where work was voluntary, and where everyone has free access to what they needed.” 

“Many of the greatest crimes in history were committed by socialist ideologues, including Vladimir Lenin, Joseph Stalin, Mao Zedong, Fidel Castro, Pol Pot, Kim Jong Il, Kim Jong Un, Daniel Ortega, Hugo Chavez, and Nicolás Maduro;” the resolution states. 

The resolution also notes under socialism, 3,500,000 people have starved in North Korea.

“North Korea has STATE CAPITALISM,” the SPGB tweeted in response to California Republican Rep. Young Kim’s message in support of the bill. “State capitalism has NOTHING to do with the class-free, state-free, money-free socialism/communism that Marx and Engels wanted and wrote about. Stop falsely blaming socialism for what state capitalism has done!”

Socialist Party of Great Britain rebukes Congressman who warns of the dangers of socialism | Fox News

Socialist Sonnet No. 97

Striking

 

The vote’s been taken, pickets are posted,

Placards hoisted, slogans given full voice;

Their situation leaves strikers no choice

As wages fall, while profits are boosted

At the workers’ expense. This feels arranged

As was the broad discontent forty years

Ago which surely must provoke fears

That forty years on nothing much has changed.

Inflation is still whittling away pay,

Governments of various stripes all show

It matters little how they come and go,

While the interests of capital hold sway.

Class solidarity may win, but then,

Gains secured will be taken back again.

 

D. A.

Not The Time To Stop Worrying

 The 1964 Stanley Kubrick film, Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb, features  Brigadier General Jack D. Ripper who unilaterally tries to begin a war with the Soviet Union by launching nuclear bombs at it.

It seems pertinent to ask the question, in 2023 how many Brigadier General Jack D Ripper’s are there in the U S Military, or the State Department, or the White House?

Not content with trying to escalate the current Russia -Ukraine conflict, the U S A military is now preparing its population for a full scale war with China. It should not be assumed that Minihan posited this of his own accord.

Capitalism has to be abolished and replaced by a sane social system before it literally kills us all.

“American Four-Star General Mike Minihan, head of the US Air Force Air Mobility Command (AMC) believes the US and China will go to war by 2025.

“I hope I am wrong. My gut tells me we will fight in 2025,” Minihan reportedly wrote in a memo to his officers, obtained by media outlets. The message instructs AMC personnel to train and get their affairs in order so that they are “legally ready and prepared.”

This prediction is the most direct and blunt yet from an American official on the prospect of a potential conflict between the US and China, besides President Joe Biden’s indications that the US would intervene on the side of Taiwan if China invaded. Of course, Minihan is not a policymaker, and the memo is not an official statement of US military policy towards China. But the influence of the US military and by extension, the military-industrial complex, on US foreign policymaking and on the mood in Washington in general, should not be underestimated.

The reality is, especially as seen in Ukraine, that the risk of a major-power conflict is arguably at the highest it has ever been since the end of World War II or the height of the Cold War. That is because the US sees itself as a rightful and permanent global hegemon. It also sees the competition catching up, however, and is ready to use all means necessary, and to take massive risks, to prevent the rise of rival powers. As such, the US and China risk falling into the so-called, “Thucydides Trap,” which is described as “an apparent tendency towards war when an emerging power  hreatens to displace an existing great power as a regional or international hegemon”.

The current distribution of power in the world is described as “emerging multipolarity”. Following three decades of American unipolarity, when the US ruled unchallenged, a number of emerging powers are changing the international order. Multipolarity differs from “bipolarity,” where two powers compete for hegemony, the best known example being the US and the Soviet Union during the Cold War.

While bipolarity brings a form of stability, as the military capabilities of both powers are evenly matched and the stakes of a potential conflict are extremely high, history shows multipolarity typically brings instability as it creates an insecure, unpredictable, and competitive international environment. The world of 1914, where a theatre of competing European powers scrambled for international dominance, ultimately combusted into the First World War. As competing world powers expanded their imperialist ambitions, they sought to contain others by forming alliances and starting arms races.

Sounds familiar? It should. Today’s world has some disturbing parallels. The US – an insecure hegemon whose relative power is diminishing as other world powers emerge – is desperately seeking to degrade, undermine and contain its rivals by triggering arms races and expanding alliance systems. Already, the focus on expanding NATO has provoked the conflict in Ukraine, but worse still, the Biden administration is actively seeking to expand that model to East Asia against China, in the form of blocs such as the Quad and AUKUS.

While these alliance systems are in theory supposed to establish deterrence and project American power, in practice history shows this behaviour only provokes, rather than prevents, conflict. The Cold War is the only exception in all history, and the Ukraine conflict has only affirmed this. Because when one state seeks to arm itself with the focus of deliberately targeting another, the other responds, creating an escalatory cycle. Each state therefore races to enhance their capabilities with the goal of responding to the other, and the cycle becomes self-reinforcing.

How do arms races break out into wars? The answer is that in a climate of growing political paranoia, suspicion and distrust which comes with these military tensions, some states like to ask themselves “what happens if they attack me first?” or “are they planning an attack?” The danger stems from when a state perceives that it is facing military containment, or a potential pre-emptive attack, their “only choice” is to attack first and land the first blow. This is, again, rooted in the lessons of history from World War I.

Once Austria-Hungary (an ally of Germany) declared war on Serbia, Germany believed that war with France (an ally of Russia) was inevitable. Therefore, the decision was made to pre-emptively attack France, through Belgium. Why is this relevant today? Because what if at some point, China decides it has no choice but to attack the US or Japan first, before they step in with force of arms to protect Taiwan? Rest assured, we aren’t quite there yet, and Beijing is normally risk averse when it comes to this kind of thing.

The comments by the US general are, of course, overly dramatic, at least at this point. Yet they are dangerous because they reflect the sentiment that sooner or later, war is inevitable, and when it is believed that war is inevitable, it is treated as such, and thus war becomes a reality. Right now, it might seem unthinkable, but so were many other wars in the past. As the US continues to drive up tensions with Beijing, a tipping point, or a miscalculation, becomes ever more likely, and that’s where the danger lies.”

 

RT 4\2\23

Dave C