Dole and work

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The revolutionary will try to empower workers, and encourage them to improve their skills. Protection from unfair dismissal is one thing, but often there is a fear of leaving one job to try another in case it doesn’t work out, or indeed to leave the dole and try a jobfor fear of ending up barred from the dole. There will be 7 days waiting for a dole claim, but that will be paid upon return to work. If you leave a job voluntarily, or lose your job through your own fault you will be barred for an extra week, the first time, but longer for subsequent times.
Partners of claiments may earn up to £80 aweek without affecting the amont of dole received.

There will be a placement scheme where claiments will be offered work for 20 hours a week at minimum wage doing work considered useful for the community, but where it would be impossible to offer that work as a normal job. Grant aided activities such as the Arts or Sport could have some of their grants replaced by having these workers for free.

Refusal to accept the placement could result in a bar from the dole.The worker will be free to look for other employment outside the hours worked on the scheme.

Creating jobs, holidays in England

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The revolutionary governement, is concerned about keeping communities together, and showing that workers are valued. The olympics has been used to promote the idea that people of all backgrounds can come together to celebrate the great history and culture of Britain and London in particular. Eating together is a very important way to unite people in a common purpose. The revolutionary government will provide a subsidy for a weeks holiday each year at a holiday centre in England, with all meals, trips and entertainment included. The food to be cooked on site from fresh local ingredients, the trips and entertainment to include elements of local history and traditional culture. All workers and their families and pensioners with incomes under the threshold for higher rate tax, will be eligible. The cost will be £140, the employer will contribute a similar amount.

National Insurance, pensions.

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National insurance is a tax, rather than an insurance, although the pension you recieve, sick pay and so on are related to it. We have abolished working  tax credit, so that leaves working people needing to live on what they earn. Nightmare? Well not really, not if it’s possible to put the money you earn in your pocket and then spend it on things you need, and maybe even things you want. The revolutionary will make National insurance a tax on income, not work. All income will be subject to it. Investment income, rents, capital gains, and the rate will be 5%. All income, includes that earned by non residents, on renting out property in England, for example. Employers will pay 6% on all payments and benefits given to employees. There will be no upper or lower limits. Pensions will be subject to the tax.

It is in fact practically impossible to save for a pension, even if you have the money to invest, the investments can very well go down as well as up. The state pension needs to be adequate. A couple should get at least the equivalent of one person on minimum wage. That would be £247 from october, less 5% NI gives £234 for a couple, £ 140 for a single person. The revolutionary government will pay this for anyone over 67 years old with 40 years contributions. SERPS pensions already earned will be paid (less 5% NI) but future  earnings will not generate further entitlements to SERPS.

Dole

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The aim of the revolutionary government is to keep the benefit system as simple as possible, and to create the feeling that money represents work. There will always be some people who are unemployed. Job seekers allowance will be replaced by Dole. One of the problems the unemployed have is exclusion. It is important that they get out of the house and see people. All dole will be paid in cash weekly. The first requirement to getting permanent employment is to learn to turn up on time. Claiments will need to arrive on time, in a condition to work. The reward, cash, failure to do so, no money. Casual work on any day will loose a fifth of the dole money. Casual work is often a way of making contacts to obtain permanent work and so needs to be encouraged. Working on dole day is, of course, a reason not to be able to go to the dole office, but a phone call before the due time is essential. Sickness is not a reason, you have to be fit for work to claim dole. The dole officer can ask for a breath test if the claiment appears to be drunk. A postive test will bar the claiment for that week.

Job creation B&B

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There are many people who could offer Bed & Breakfast on an occasional basis, but find it difficult to comply with all the regulations. The revolutionary governement will allow a householder who complies with all the regulations for a house to live in, to have up to 5 guests for up to 100 days a year, providing they display a notice explaining their status, and notify their local authority. Any income will be free of tax. All food provided must be traditional home cooked English food. It is important to provide vistors with an English experience.

Job creation, repairs.

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Repairing goods has many advantages over throwing away the old and importing new. Unfortunately it can often appear to be uneconomic.

The new government will legalise anyone in full time employment to do part-time work  unrelated to his emplyment without paying tax or national insurance contributions, providing the work is not advertised, and that all customers are personally known to the worker and that they are aware of his status. You will be able to give a mate a few bob for giving you a hand with your home improvements for example.

Repairs to movable goods and building repairs will be subject to a 5% VAT rate providing the value of any goods supplied doesn’t exceed two thirds of the price.

This, together with the workers supplement should maintain the competitiveness of computer repair firms,  garages, builders etc.

Job creation, 22 carat

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China is probably moving towards using its own currency for international exchanges, but reluctantly. It now encourages its own population to buy gold, whilst forbidding its export. Possibly with the intention of using it to back its own currency. The use of the dollar for international trade is no longer viewed favourably by China, as it allows the USA to create money to buy oil, and the cost is born by the lowered value of everyone elses dollar holdings. The revolutionary government will follow this example, by encouraging the manufacture of jewelery. Hall marking will be free for 22 carat gold, and where the value of 22 carat gold included in jewelry exceeds one third of the selling price, it will be VAT exempt. Exports will be allowed, and given that England has many skilled jewelery makers, this should create many jobs, as gold flows into the country and is paid for by jewelry flowing out. I am sure that those with money will also take the oportunity to buy the occasional item.

Workers supplement

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Working tax credits to be phased out over a year and replaced by a workers supplement in the form of silver coins called shillings, worth £5 at the outset, but the exchenge value will be adjusted so as to maintain the purchasing power in the face of inflation, so becoming £6 in about 6 years.

China now sees western currencies as simply representing government debt and has reached an understanding with countries such as Brazil, Russia, India, South Africa, The United Arab Emirates, Chile, Iran and Japan to use their own currencies, or barter, instead of the US dollar for international exchanges. We will need to have something these countries want if we are to continue to buy from them. Although to begin with the shilling will have value because it can be exchanged for the pound, in a few years the pounds value will be supported because it can be exchanged for the shilling.

The workers supplement will be paid pro-rata for part-time working. The full rate will be for full time on minimum wage to minimum wage plus 30%, and above that it will reduce by 14% of your income above 1.3 times minimum wage, so it will reduce to zero at about 500 pounds a week.

The supplement is only for certain types of worker. Those who work in industry or construction and who do the actual work, including maintenance, cleaning, but not what might be described as office or management work. Farm workers who actually do the real work are included, and telephone switchboard operators, and call centre operators who recieve calls from the puplic.

The idea is to encourage home manufacture of goods instead of impoting them from china and the like. Call centres are another type of job that is leaving the country. But the new govenment will encourage telephone operators based where the real work is done rather than call centres, except where it is geuinely a central place of allocation.

The jobs excluded are the service industries, office jobs, and shops. Jobs working on computers, are excluded, but manufacture maintenace and repair will be included.

Repair work of all kinds will be included, this is usually better for the environment and often saves on imports.

Manufacturing industry workers need encouragement

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The world is changing. For 200 years England was the most powerful force in managing world trade, certainly together with the other major world powers. The trade certainy wasn’t all fair, but the monetry system worked. If the king increased taxes, the workers would have to earn money and then give the actual coins to the kings men. Ask too much and revolution would threaten. At least then it was fairly clear when you were being robbed.

For the last centuary world trade has been based mainly on the dollar. First it was backed by gold, and this was abandoned in the 1971. There have been many financial booms and busts. A gram of gold in 1914 cost about half a crown, now it costs £ 33 or 264 times as much. Or, a penny in 1914 would buy more  than a pound buys now. In fact gold has risen in price in real terms, but even so the pound has shrunk to about 1/100th of its value in 1914.

The Chineese used american dollars for their international trade and bought US bonds with their savings for many years. They stopped last year as they felt the rate of devaluation of the dollar exceeded the interest and so they are loosing money.

Between 1999 and 2002 Gorden Brown sold 60% of the UK’s gold reserves. The UK  sold about 395 tons of gold  at an average price of about US$275 per ounce. current price $1.600; The UK holds 310 tons of gold reserves. France for example has 2435 tons.

The revolutionary government will abolish working tax credits and instead give workers in manufacturing and construction industries, a new currency equivalent to the victorian shilling, which will be legal tender and exchange initially as one shilling equalls five pounds. It will be issued in real sterling silver coins containing 5.24 grams of silver. Each eligible worker will receive 5 shillings a week from the government via the post-ofice as a supplement to their wages. No bank account may be created in the new currency. Credit unions may open accounts, as these have to be fully backed by sterling or storing the new coins.

Money should represent work.

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The new government will need to make changes to the whole meaning of money. Money should be a devise to facillitate work and commerce, and avoid the need for barter. That way you do work, get money and use it to buy goods and services, which are provided as the result of someone elses work. Untill the first world war, the money in use was worth something, it was made of silver, and larger sums of money were gold or paper backed by gold. For 200 years from about 1700, England controlled a large part of the words economy, with its Empire, and as a result of the Industrial revolution. It more or less managed to keep money stable througout that time. A shilling would buy around the same amount througout that period. There were problems of course, but they were not caused by money itself. Now most people only have a figure on a bank’s computer screen.