A radical analysis of the IMF/ECB four year plan and call to action

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  • user warning: Table './external/cache_views_data' is marked as crashed and last (automatic?) repair failed query: UPDATE cache_views_data SET data = 'a:3:{s:6:\"result\";a:6:{i:0;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8695\";s:10:\"node_title\";s:59:\"The housing crisis in Ireland - 8 points on the big picture\";s:21:\"node_revisions_teaser\";s:745:\"<p><img alt=\"\" src=\"/sites/default/files/HousingMarch.jpg\" style=\"width: 400px; height: 320px; margin: 3px; float: right;\" />The WSM has been having a &#39;big picture&#39; discussion around the housing crisis from which the following points emerged. We are publishing them ahead of the December 1st demonstration in Dublon (14.00 Parnell square).</p>\r\n<p>1. We built our cities and the houses of our cities. They are ours, not to slave in, but to master and to own*.</p>\r\n<p>2. The contemporary crisis of capitalism has made markedly visible the relationship between finance capital and property speculation, between the concentrated money-power of bankers and speculators and the shaping of the built environment in our towns and cities.</p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1543494053\";}i:1;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8679\";s:10:\"node_title\";s:25:\"DABF Safer spaces policy \";s:21:\"node_revisions_teaser\";s:593:\"<div>\r\n This policy applies to the bookfair, the fundraising afterparty, the meeting spaces and online spaces. This policy is made in order to create an environment to foster free discussion and sharing of ideas, those engaging in abusive or oppressive behaviour will be asked to leave the space. We encourage all attendees to be aware of this policy, and to report to book-fair volunteers if they observe people engaging in abusive or oppressive behaviour.</div>\r\n<div>\r\n &nbsp;</div>\r\n<div>\r\n We define the following as abusive behaviours which are not tolerated in this space;</div>\r\n<div>\r\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1536841535\";}i:2;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8675\";s:10:\"node_title\";s:47:\"Get your Dublin Anarchist Bookfair 2018 T-shirt\";s:21:\"node_revisions_teaser\";s:310:\"<p><strong>Get your Dublin Anarchist Bookfair t-shirt! [ONLINE SALES ARE NOW CLOSED]</strong><br />\r\n <img alt=\"\" src=\"/sites/default/files/Womens%20tee.jpg\" style=\"width: 300px; height: 300px;\" />&nbsp;&nbsp;<img alt=\"\" src=\"/sites/default/files/Mens%20tee_0.jpg\" style=\"width: 300px; height: 300px;\" /></p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1536010979\";}i:3;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"6387\";s:10:\"node_title\";s:97:\"12th Dublin Anarchist Bookfair - 14th & 15th September 2018 - Teachers Club 35 Parnell sq & Wynns\";s:21:\"node_revisions_teaser\";s:745:\"<p><img alt=\"\" src=\"/sites/default/files/DABF_FB_Event.png\" style=\"width: 350px; height: 195px; margin: 3px; float: right;\" />The 12th Dublin Anarchist Bookfair took place on the 15th September 2018 at the Teachers Club 35 Parnell square and on the evening of the 14th at Wynns hotel. &nbsp;Every year hundreds of people attend the Dublin Anarchist Bookfair for a day of inspiring discussions and the opportunity of meeting lots of other radicals, browsing books and meeting campaigns.</p>\r\n<p>We will be uploading about a dozen audio and video recordings of the panels at the bookfair, follow us on Twitter or Facebook to get notification of new uploads or check&nbsp;<a href=\"https://www.wsm.ie/anarchist-bookfair\">Anarchist bookfair</a></p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1528363710\";}i:4;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8642\";s:10:\"node_title\";s:51:\"8 reasons we are voting Yes to Repeal the hated 8th\";s:21:\"node_revisions_teaser\";s:375:\"<p class=\"rtecenter\"><img alt=\"\" src=\"/sites/default/files/Repeal8thWSMbannerthin.jpg\" style=\"width: 650px; height: 307px; margin: 3px;\" /></p>\r\n<p>On May 25th we finally get to vote to Repeal the hated 8th amendment. &nbsp;Here we present the 8 reasons we are voting Yes to Repeal along with many of the articles we have published on the issue in recent months. &nbsp;</p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1527172249\";}i:5;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8639\";s:10:\"node_title\";s:52:\"What Happened When Portugal Decriminalised Abortion?\";s:21:\"node_revisions_teaser\";s:970:\"<p dir=\"ltr\"><strong>With the referendum to repeal the 8th <strong><img alt=\"\" src=\"/sites/default/files/portugal%20abortion%20pic.png\" style=\"height: 341px; width: 400px; border-width: 1px; border-style: solid; margin: 3px; float: right;\" /></strong>amendment on May 25th drawing nearer, it&rsquo;s with great interest that we look at the experience of other countries which have struggled against an abortion ban like ours, to learn from the lessons of the campaign, and to &lsquo;look into the future&rsquo;, as it were, and see the result of decriminalising abortion. As such, here are some brief notes on Portugal.</strong></p>\r\n<p dir=\"ltr\">On 11th February 2007, in a national referendum, the Portuguese voted in favor of the decriminalization of the &quot;voluntary interruption of the pregnancy&quot; (VGI). It was the end of more than 30 years of struggles, advances and retreats, with many public debates dividing several quarters of Portuguese society.</p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1525798800\";}}s:10:\"total_rows\";i:1579;s:5:\"pager\";a:5:{s:9:\"use_pager\";s:1:\"0\";s:14:\"items_per_page\";i:6;s:7:\"element\";i:0;s:6:\"offset\";i:0;s:12:\"current_page\";i:0;}}', created = 1566496883, expire = 1566497183, headers = '', serialized = 1 WHERE cid = 'wsm_only:block_1:results:692e0a14e0b7ab966d18830fa49232e2' in /var/www/public/includes/cache.inc on line 112.
  • user warning: Table './external/cache_views_data' is marked as crashed and last (automatic?) repair failed query: UPDATE cache_views_data SET data = 'a:4:{s:4:\"head\";s:0:\"\";s:3:\"css\";a:0:{}s:2:\"js\";a:0:{}s:6:\"output\";s:3201:\"<div class=\"view view-wsm-only view-id-wsm_only view-display-id-block_1 view-dom-id-4\">\n \n \n \n <div class=\"view-content\">\n <div class=\"views-row views-row-1 views-row-odd views-row-first\">\n \n <div class=\"views-field-title\">\n <span class=\"field-content\"><a href=\"/c/housing-crisis-notes-big-picture-ireland\" title=\"The housing crisis in Ireland - 8 points on the big picture\">The housing crisis in Ireland - 8 points on the big...</a></span>\n </div>\n \n <div class=\"views-field-teaser\">\n <span class=\"field-content\">The WSM has been having a &#39;big picture&#39; discussion around the housing crisis...</span>\n </div>\n </div>\n <div class=\"views-row views-row-2 views-row-even\">\n \n <div class=\"views-field-title\">\n <span class=\"field-content\"><a href=\"/c/dabf-safer-spaces-policy\" title=\"DABF Safer spaces policy \">DABF Safer spaces policy</a></span>\n </div>\n \n <div class=\"views-field-teaser\">\n <span class=\"field-content\">\n This policy applies to the bookfair, the fundraising afterparty, the meeting spaces...</span>\n </div>\n </div>\n <div class=\"views-row views-row-3 views-row-odd\">\n \n <div class=\"views-field-title\">\n <span class=\"field-content\"><a href=\"/c/get-your-dublin-anarchist-bookfair-2018-t-shirt\">Get your Dublin Anarchist Bookfair 2018 T-shirt</a></span>\n </div>\n \n <div class=\"views-field-teaser\">\n <span class=\"field-content\">Get your Dublin Anarchist Bookfair t-shirt! [ONLINE SALES ARE NOW CLOSED]\n &nbsp;&nbsp;</span>\n </div>\n </div>\n <div class=\"views-row views-row-4 views-row-even\">\n \n <div class=\"views-field-title\">\n <span class=\"field-content\"><a href=\"/c/dublin-anarchist-bookfair-latest\" title=\"12th Dublin Anarchist Bookfair - 14th &amp; 15th September 2018 - Teachers Club 35 Parnell sq &amp; Wynns\">12th Dublin Anarchist Bookfair - 14th &amp; 15th...</a></span>\n </div>\n \n <div class=\"views-field-teaser\">\n <span class=\"field-content\">The 12th Dublin Anarchist Bookfair took place on the 15th September 2018 at the...</span>\n </div>\n </div>\n <div class=\"views-row views-row-5 views-row-odd\">\n \n <div class=\"views-field-title\">\n <span class=\"field-content\"><a href=\"/c/8-reasons-vote-yes-to-repeal\">8 reasons we are voting Yes to Repeal the hated 8th</a></span>\n </div>\n \n <div class=\"views-field-teaser\">\n <span class=\"field-content\">\nOn May 25th we finally get to vote to Repeal the hated 8th amendment. &nbsp;Here we...</span>\n </div>\n </div>\n <div class=\"views-row views-row-6 views-row-even views-row-last\">\n \n <div class=\"views-field-title\">\n <span class=\"field-content\"><a href=\"/c/what-happened-portugal-decriminalised-abortion-anarchism\">What Happened When Portugal Decriminalised Abortion?</a></span>\n </div>\n \n <div class=\"views-field-teaser\">\n <span class=\"field-content\">With the referendum to repeal the 8th amendment on May 25th drawing nearer, it&rsquo;s...</span>\n </div>\n </div>\n </div>\n \n \n \n \n<div class=\"more-link\">\n <a href=\"/all\">\n more </a>\n</div>\n \n \n \n</div> \";}', created = 1566496883, expire = 1566497183, headers = '', serialized = 1 WHERE cid = 'wsm_only:block_1:output:30e25f9bd85c357eb10c6c886f8c678d' in /var/www/public/includes/cache.inc on line 112.
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  • user warning: Table './external/cache_views_data' is marked as crashed and last (automatic?) repair failed query: UPDATE cache_views_data SET data = 'a:3:{s:6:\"result\";a:6:{i:0;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8692\";s:10:\"node_title\";s:57:\"No LNG terminal on the Shannon - Climate Change & Methane\";s:21:\"node_revisions_teaser\";s:786:\"<p>We interviewed William Hederman, an environmental researcher living in County Clare, about the planned Liquefied Natural Gas terminal on the Shannon. Construction of it will mean Ireland will fail to meet its Climate Change commitments and will instead be tied into pumping out additional Greenhouse Gases for decades. As the LNG will come from the US it will includes fracked gas, a process banned in Ireland that releases three times as much of the very powerful Climate Change gas methane as conventional gas. [<a href=\"https://youtu.be/iO960KeoaHE\">video</a>]</p>\r\n<p><iframe allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\" frameborder=\"0\" height=\"315\" src=\"https://www.youtube.com/embed/iO960KeoaHE\" width=\"560\"></iframe></p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1542897581\";}i:1;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8687\";s:10:\"node_title\";s:30:\"Moral philosophy and abortion \";s:21:\"node_revisions_teaser\";s:1167:\"<p><img alt=\"\" src=\"/sites/default/files/Philosophers.jpg\" style=\"width: 400px; height: 309px; margin: 3px; float: right;\" />The debate around abortion is sometimes characterised as an opposition between the morals of the church and personal morals. But is this an accurate description? Moral philosophy can broadly be defined as the branch of philosophy that contemplates what is right and wrong. It explores the nature of morality and examines how people should live their lives in relation to others. But a closer look at what characterises moral philosophy leads to the conclusion that while the expression &ldquo;relying on personal morals&rdquo; may come across as a useful shortcut to describe what the pro-choice stance is about, it is also a misuse of moral terminology which has the effect of casting a positive light on moral philosophy, rather than helping us come to terms with the deeply problematic nature of this field. As I hope to make clear, arguments in favour of abortion rights are rooted in anti-authoritarianism whereas moral philosophy can only exist as a rhetorical tool of authoritarianism (even when it is used with good intentions).</p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1538146665\";}i:2;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8686\";s:10:\"node_title\";s:88:\"Let Them Drown: Climate Change is War - and Wall Street is Winning audio from #DABF 2018\";s:21:\"node_revisions_teaser\";s:587:\"<p>This audio is an independently organised panel from the 2018 Dublin Anarchist Bookfair on the bleak reality of climate change and its intersections with financial capitalism, state politics and migration. [<a href=\"https://www.mixcloud.com/workerssolidarity/climate-change-is-war-and-wall-street-is-winning-audio-from-dabf-2018/\">audio</a>]</p>\r\n<p><iframe frameborder=\"0\" height=\"120\" src=\"https://www.mixcloud.com/widget/iframe/?hide_cover=1&amp;light=1&amp;feed=%2Fworkerssolidarity%2Fclimate-change-is-war-and-wall-street-is-winning-audio-from-dabf-2018%2F\" width=\"100%\"></iframe>\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1538128457\";}i:3;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8685\";s:10:\"node_title\";s:99:\"Ending Direct Provision: Migrant Voices speak out about the Asylum process in Ireland at #DABF 2018\";s:21:\"node_revisions_teaser\";s:765:\"<p>People currently in Direct Provision talk about the dehumanising conditions and the large profits being made out of their suffering by the companies that own the direct provision centres. People don&rsquo;t understand why we ended up in Direct Provision, we hope to bring our stories out of the shadows of Irish society. [<a href=\"https://www.mixcloud.com/workerssolidarity/ending-direct-provision-migrant-voices-speak-out-about-the-asylum-process-in-ireland-at-dabf-2018/\">audio</a>]</p>\r\n<p><iframe frameborder=\"0\" height=\"120\" src=\"https://www.mixcloud.com/widget/iframe/?hide_cover=1&amp;light=1&amp;feed=%2Fworkerssolidarity%2Fending-direct-provision-migrant-voices-speak-out-about-the-asylum-process-in-ireland-at-dabf-2018%2F\" width=\"100%\"></iframe></p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1537883979\";}i:4;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8684\";s:10:\"node_title\";s:66:\"How my politics is intersectional - audio from panel at 2018 #DABF\";s:21:\"node_revisions_teaser\";s:634:\"<p>Panel from the 2018 Dublin Anarchist bookfair on the intersection between race politics, class and gender in Ireland with a particular focus on the current housing struggles and the Together for Yes referendum campaign / Repeal movement. [<a href=\"https://www.mixcloud.com/workerssolidarity/how-my-politics-is-intersectional-panel-at-2018-dublin-anarchist-bookfair/\">audio</a>]</p>\r\n<p><iframe frameborder=\"0\" height=\"120\" src=\"https://www.mixcloud.com/widget/iframe/?hide_cover=1&amp;light=1&amp;feed=%2Fworkerssolidarity%2Fhow-my-politics-is-intersectional-panel-at-2018-dublin-anarchist-bookfair%2F\" width=\"100%\"></iframe></p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1537536634\";}i:5;O:8:\"stdClass\":5:{s:3:\"nid\";s:4:\"8683\";s:10:\"node_title\";s:91:\"Rojava: Eyewitness to a women\'s revolution - report back from a May 2018 trip at #DABF 2018\";s:21:\"node_revisions_teaser\";s:597:\"<p>The 12th Dublin anarchist bookfair heard this account from Wendy, a Human Rights &amp; immigration lawyer who visited Rojava in May 2018 as part of a fact finding delegation. [<a href=\"https://www.mixcloud.com/workerssolidarity/rojava-eyewitness-to-a-womens-revolution-report-back-from-a-may-2018-trip-at-dabf-2018/\">audio</a>]</p>\r\n<p><iframe frameborder=\"0\" height=\"120\" src=\"https://www.mixcloud.com/widget/iframe/?hide_cover=1&amp;light=1&amp;feed=%2Fworkerssolidarity%2Frojava-eyewitness-to-a-womens-revolution-report-back-from-a-may-2018-trip-at-dabf-2018%2F\" width=\"100%\"></iframe></p>\r\n\";s:21:\"node_revisions_format\";s:1:\"2\";s:12:\"node_created\";s:10:\"1537442594\";}}s:10:\"total_rows\";i:807;s:5:\"pager\";a:5:{s:9:\"use_pager\";s:1:\"0\";s:14:\"items_per_page\";i:6;s:7:\"element\";i:0;s:6:\"offset\";i:2;s:12:\"current_page\";i:0;}}', created = 1566496883, expire = 1566497183, headers = '', serialized = 1 WHERE cid = 'not_wsm:block_1:results:6f171fd0922b167e997398452392a596' in /var/www/public/includes/cache.inc on line 112.
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Date:

Today the government announced the details of the four year plan required as part of the ECB / IMF ‘bailout’ of the banks. There will be five billion worth of new taxes and 10 billion worth of cuts under this so called ‘National Recovery’ which in reality will take 10% out of GDP. As we show below almost all these costs are being dumped on workers, particularly low paid workers, the very sector that gained little or nothing during the boom years. the richest 1% are left with most of their legal tax dodges in particular the ability to avoid paying tax at all if they spend 6 months on holidays out of the country.

The aim of the plan is to cut the deficit from 12% to 2% by 2014. The European Central Bank with the IMF is demanding that the deficit be reduced to less than 10% by next year.

Social welfare alone will be cut by 2.8 billion over the four years, with an average cut of over 15%. If the promise not to cut pensions is kept this will mean cuts considerably above 15% for some welfare recipients. If pensions are excluded this will mean cuts of 20-25%. In the first year the government is planning to cut 800 million from social welfare, the target is to cut rates to the 2007 level. The details of these cuts have not yet been revealed but are being described as probably savage.

The minimum wage is to be cut by a euro an hour, meaning the very lowest paid face a huge percentage drop in their income which they are now also to be taxed on (11.5% reduction BEFORE income is taxed). The 2% hike in vat will also hit the poorest hardest.

The plan is a 160 page document in five sections, described as “current spending; capital spending; taxes; potential areas for economic growth; as well as a chapter on reform.” Tax credits will be reduced and tax bands widened dragging the low paid back into the tax sector. It's aimed to collect an extra two billion next year in tax. People earning more that 15,300 will be brought into the tax net, at the moment you had to earn over 18,000.  Astoundingly Paula Clancy of TASC revealed in their preliminary analysis that “In terms of income tax, single persons on €40,000 and those earning €300,000 will both see their income tax bills rise by €1,860 based on changes to basic credits and tax bands. In effect, this means that those on the average industrial wage will take the same hit as top earners."

A property tax and the introduction of water charges are planned to bring in an additional five billion. The water tax will be flat tax measures which mean the very very rich in huge houses will pay exactly the same as the lowest paid workers in cramped substandard accommodation. The property tax is to be based on site value, it remains to be seen how this will be implemented.

Over 24,000 public sector workers are to lose their jobs and new workers in the public sector are going to have to take a 10% pay cut. They also intend to cut Civil Service pensions by 12 to 6% with only those on less than 12,000 a year to be exempt from these cuts.

Another 1.4 billion is to be slashed from the already dysfunctional public health service. 1,500 workers a year are to lose their jobs with cuts in the medical card and drug payment schemes.  For further analysis on what this means see this article by a WSM health care worker.

Student fees are to rise to 2,000 a year with leaving cert repeats to be charged fees of 500 euro. Grants are also to be cut.

Mortgage interest relief will not be available after 2013 for workers buying houses and will be cut for everyone by 2018.

Although it appears property tax breaks will be ended there is no hint of a plan to go after the wealthy 1% who own 34% of the wealth and many of whom pay no income tax through the simple legal ruse of spending 6 months of the year out of the country. Nor is there a hint of a windfall tax on the 1% for the billions made in dodgy property deals during the boom. Instead the low paid and those on welfare are being targetted to pay the costs of a crisis that was not their making.

To add insult to injury there is a pledge to leave the 12.5% corporate tax as the lowest rate in Europe. The unemployed are to be made to pay the costs of the crisis rather than the likes of Google, Facebook or Pfizer (who make Viagra in Cork). In their last quarter Google reported a 25% hike in profits to 1.84 billion dollars.

That the plan was in the interests of the richest 1% of Irish society is revealed by the positive reactions their organisations have given it. Chief amongst these IBEC announced within the hour that it had “recognised the importance of a growth strategy for the Irish economy” and demanded more saying “it is vital that a pro-enterprise Budget is now passed, so the country can move forward.” Anyone familiar with the sinister meaning behind IBEC jargon will understand this as a demand for further cuts and further underminding pay and conditions. Even the organisations of the wannabe 1% liked the plan, the mini capitalists of RGDATA, the independent family grocers association proclaimed their welcome for what the called the the “'overdue' commitment in the plan for a review of the Joint Labour Committee Wage-Setting Mechanism”, translating as they wanted the laws that stop them paying the lowest wage they can impose weakened as part of the campaign against the minimum wage.

Next Saturday will see a major opportunity to demonstration your opposition to this plan. The ICTU has called a march through Dublin which will now be joined by many thousands of people. Join the 1% Network on the march who are demanding that the 1% must pay for the crisis and that workers must organise a general strike to force them to pay. Meet us at 11.30 outside the Lord Edward pub, across the road from Christ Church Cathedral.

The ICTU leadership are only interested in agreeing ‘fairer cuts’ and a return to social partnership. Their soft approach has been answered in the removal of tax relief on unions subs, almost irrelevant in terms of revenue raising but sending a clear message as to the level of respect the leaderships approach has in ruling circles. Symbolic protests whether they be marches or token 24 hour strikes can not force the wealthy 1% to pay, to fight them in any serious way we need to organise a general strike that will bring them to their knees. 

WORDS: Andrew

You can read our archive of background  and news articles on the Capitalist Crisis, you can also read this article by a WSM health care worker

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