Wednesday, October 27, 2010

More Murphy

Richard Murphy on some spending cuts:
But there’s more to it than that. The people who run these services – lowly paid by and large – want to work with the young, the old, in caring for fellow human beings. The private sector is not going to provide these people with those jobs – because the state is not going to pay them to provide them – and nor is The Big Society – let’s be realistic.
Where to begin? There are just so many problems in this hysterical bilge that I really do struggle to find a starting point. I guess we're just going to have to do this the old-fashioned way, and start at the beginning.

Firstly, those who work for the various services Murphy is chuntering about are often not paid well. But that really is the choice of those who employ these individuals. That's right - local and central government decide how much these people should be paid. Therefore, it is their fault if these people aren't paid particularly well.

Murphy would be on stronger ground if the pay in the public sector was roughly the same across that sector. Of course, it isn't. Those delivering frontline services may be paid poorly, but those in management positions or in office based work are often paid relatively well - a quick flick through The Guardian's job adverts shows this. And those who run councils - the Chief Executives etc - are often paid hundreds of thousands for the work they do. Of course, pay comes down to the particular worth an organisation places on its employees and you can argue that the pay scales in the public sector are counter-intuitive and warped. But that's an internal problem to the public sector - that sector that Murphy virtually worships.

It is also impossible to say what the motives are of such employees. Some will actively want to work with the vulnerable; others might do it because they have no choice. Murphy here is trying to do a crude trick - he's tugging on your heartstrings by talking about poorly paid caring people. The reality is that some carers will match that description - others really won't.

And where's his evidence that the private sector won't give these people jobs? The private sector may well give them jobs if there is a demand for their services and a chance that those services will turn in a profit for the employers. Employers aren't reliant on the state and state funding to employ people who are useful to them - in fact, a lot of employers would far rather that the government buggered off out of their hiring choices.

He's right that the Big Society won't pay for these people - but then again, given the Big Society is a largely empty concept rather than an actual institution, that's hardly surprising. Social Democracy won't pay to provide jobs for them either - again, it's a ideology, not an institution or individual with funds. However, society and its component communities may well pay for these people to have relevant jobs - particularly if the tax burden in this country is substantially reduced and people get to choose how they spend their money to a much, much greater extent. Which, of course, is something that Murphy passionately opposes.

At its heart, there is something very depressing about Murphy's view of human nature. He doesn't see people as basically willing to care about other people without the coercion of the state. In his worldview, people have to be forced to be nice to each other, and to care about the welfare of others. And in doing so, he fabricates an ersatz sense of caring. Many of us who don't share his unthinking reverence for the state believe that if we are given increased freedom, many of us will quite naturally use that freedom to make sure others are Ok. And I'd argue that this is far more optimistic that anything in the statist outlook of Murphy and his ilk.

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6 Comments:

At 12:57 pm , Blogger Devil's Kitchen said...

"The people who run these services – lowly paid by and large – want to work with the young, the old, in caring for fellow human beings."

Yeah? I want to be a wonderful artist, but I don't see why other people's money should be stolen from them in order to pay me to be one.

DK

 
At 1:12 pm , Blogger deadaccount. said...

Sorry, but I need to bore you to death again with the details of a study featured in the Economic Policy Journal.

"A 2002 paper in the Economic Policy Journal, written by the French economists Yann Algan, Pierre Cahuc, and Andre Zylberberg, looked at the impact of public employment on overall labor market performance. Using data for a sample of OECD countries from 1960 to 2000, they found that, on average, the creation of 100 public jobs eliminated about 150 private-sector jobs, decreased by a slight margin overall labor market participation, and increased by about 33 the number of unemployed workers. Their explanation was that public employment crowds out private employment and increases overall unemployment by offering comparatively attractive working conditions."

Who said that keeping state spending high will save jobs?

 
At 1:13 pm , Blogger Lord Blagger said...

The problem is that people can't care for these people, and pay the whacking taxes too.

It's either or.

Since the debts have been run up, and have to be paid, that means no reduction in taxes, and in fact increases, since they were hidden off the books.

So its care that's going. Courtesy of the ilegal financial bookeeping in the state.

 
At 1:19 pm , Blogger Christie Malry said...

"Those delivering frontline services may be paid poorly"

No more so than private sector workers delivering equivalent frontline services. And, once you take into account their gold-plated defined benefit pension promises, public sector workers of all types are miles ahead of the private sector.

 
At 1:40 pm , Blogger Paul Lockett said...

Ritchie's got no real consistency on this issue, as is generally the case. He very keen on arguing that the state must provide a whole range of services which otherwise wouldn't be provided, but then when he talks about a state he doesn't like, such as the Isle of Man, he is perfectly happy to point out that the RNLI is an entirely voluntary organisation which provides a perfectly good service there.

 
At 2:38 pm , Blogger jaljen said...

One of the problems is accountability or, if you will, a direct connection between the demand and supply.
Simply put the private sector will sell gubbins while people want gubbins. Employees will keep making those gubbins until demand ceases.
In education (where I work) people seem to be recruited to do things (often very vague) on the basis that someone somewhere may have thought it was a good idea. In a couple of months the kid may leave but the staff member remains. Or the numbers fall. The staff remain. The connection with input/output is broken if it ever really existed.
I swear to you that my establishment could operate effectively with a third fewer colleagues. Such is the absence level that this often happens and yet nobody puts two and two together to make cuts. It's gravy train here in school.

 

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