At least some elements of the Labour Party are saying we need to have a National Income Guarantee Scheme, to ensure everyone continues to have the money to live. This is, in my view, the correct humanitarian response. But also one which should force the wholesale rationalisation and simplification of the benefits system.
People’s ability to survive has to be supported and protected, and not just by protecting them from the disease. This protection has to come ahead of bailing out business. If people survive, business will survive. Without people there is no business.
If people have secure income, companies are expendable. If businesses don’t survive, they can be rebuilt as long as there are people who survive to do it. Hence people must come first.
No, I don’t care if every (passenger) airline goes out of business. Or every manufacturer of TVs. Or every theatre and pub. They can be rebuilt later. But we do still need to be producing food and medicine – and moving it around.
Ultimately that is where the effort has to be: protect the people and the food supply chain.
Along with this I have seen it suggested that there should be a 0% interest rate on all personal/household debt. My guess is that this would need to last at least a year. I can see the logic behind this, although it would no doubt also mean 0% interest for savers. A reduction in debt interest would not affect us (our only debt is a relatively small amount on credit cards); but no interest on savings would hit us – although not hard because heaven knows we already get little enough interest on our savings.
This is all very fine, but one has to ask where the government finds the money for this. The government doesn’t have a money-tree. The only money they have is what they collect in tax or what they can borrow. They have already borrowed more than it is going to be comfortable to ever repay. Where does the tax come from? Your and my pockets: either directly (income tax, national insurance) or indirectly (VAT, excise duty, corporation tax). If we don’t have any money, the government collects no tax. Without tax income there can be no income guarantee scheme, no bailouts, and no NHS. This is the economics of the capitalist system we live in. Chicken meet egg.