Why it’s Simon Danczuk who is ‘economically illiterate’

1:54 pm - July 4th 2013

by Chris Dillow    

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In the Times (£) Simon Danczuk says lefties such as Owen Jones are "economically illiterate." He misses the point that, in many respects now, it is not the left that's economically illiterate but rather centrists like him.

 - It is economically illiterate to ignore the massive evidence that unemployment is a huge source of misery, and to talk instead of the minority of scroungers.

 - It is economically illiterate to complain about crony capitalism, as Danczuk does, without recognizing that basic economics tells us that crony capitalism is the only likely form of capitalism.

 - It is economically illiterate to think the unemployed can be incentivized into work when there are 4.9 officially unemployed people for every vacancy, and 12.1 unemployed if we use a wider definition of joblessness.

– It's economically illiterate to believe that the macroeconomic cost of scrounging is anything other than very small.

 - It is economically illiterate to speak of the "benefits of getting people into work" as Danczuk does, but then accept the Tories' tight fiscal plans for after 2015 – especially if you don't raise the inflation target.

 - It is economically illiterate to think the government is in control of its finances, and that fiscal policy alone is sufficient to reduce the deficit, without recognizing that deficit reduction requires a decline in the private sector's net financial surplus.

 - It is economically illiterate to think a jobs guarantee for those who have been out of work for more than two years is anything close to an acceptable employment policy, when these account for less than one-fifth of unemployment, and when helping them into work might well displace the shorter-term unemployed.

 - It is economically illiterate to ignore the evidence that there's very little that governments can do to much improve the economy's medium-term growth rate.

 - It is economically illiterate to ignore the fact that, throughout the west, there has been a long-term collapse in demand for unskilled work.

 - It is economically illiterate to ignore the possibility that preferences are endogenous. Insofar as some unemployed are lazy, their laziness might not (just) be a cause but rather an effect of their unemployment: why make yourself unhappy wanting something you can't have?

I don't say all this to attack Mr Danczuk, but rather to make a broader point. The phrase "economically illiterate" has long been used to smear leftists as unrealistic utopian dreamers. And I'll concede that the description fits many of the soft left. But this tactic ignores a nastier fact. At the current juncture of capitalism, what is  really economically illiterate is the belief that capitalism is compatible with decent employment prospects and living standards for all workers – especially if you limit your policy options to those that are acceptable to Paul Dacre.

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About the author
Chris Dillow is a regular contributor and former City economist, now an economics writer. He is also the author of The End of Politics: New Labour and the Folly of Managerialism. Also at: Stumbling and Mumbling
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Story Filed Under: Blog ,Economy ,Labour party ,Westminster

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Reader comments

1. Matthew Blott

I clicked on the link for this expecting to see … well, something economically literate. But all we have here is a rant.

With out of touch vermin like Danczuk is it any wonder Labour’s own supporters just can’t be arsed anymore. His grasp of economics can be seen by how well Urban Visions Limited succeeded.

“At the current juncture of capitalism, what is really economically illiterate is the belief that capitalism is compatible with decent employment prospects and living standards for all workers”

So what do you suggest? After all, we’ve seen that communism doesn’t work, and capitalism has done more to improve living standards and lift more people out of poverty than any other system.

4. Planeshift

He’s also an MP who accused his local constituents of scaremongering when they campaigned against the downgrading of their hospital, then promptly campaigned against the downgrading once he realized it could be blamed on the Tories despite being planned for several years.

One of the reasons why Labour is still unelectable


It still puzzles me that some people get the words ‘capitalism’ and ‘science’ mixed up.

@3 Tyler

“So what do you suggest? After all, we’ve seen that communism doesn’t work, and capitalism has done more to improve living standards and lift more people out of poverty than any other system.”

Yet we have seen stagnation of the income of the very people you are talking about throughout the west- especially since the so called Washington consensus went up its own sphincter. What used to be the workers share of the wage bill of a corporation has instead been appropriated by the executives (pay rises of 20%+ PA as opposed to ~2%PA) All in a world where the cost of housing, energy and food are inflating at between 5-20%PA. so my question for you is simple, is capitalism workable long term? If it is, kindly explain how it will work.

@ Dissident

You didn’t exactly (or indeed at all) answer my question when I asked yoou what the alternative was…..

I never said capitalism was perfect, but it is by far the best system out there. Workers wages have been squeezed but this isn’t always bad for growth of the economy in general (Germany is a great example of this) as it means productivity tends too increase. Tends to mean more jobs, and as an economy gets towards full employment wages would tend to increase faster than inflation as availability of labour becomes the main cost push factor.

The ratio between executive pay to worker pay is really a socio-political argument. Executive pay in most industries (banking really being the exception) doesn’t massively effect company bottom lines.

Ultimately, worker pay will also be affected by many other factors. Increasing mechanisation, education of the work force and things like employment law and corporate/employment taxes. Low skilled jobs are often low productivity as well, and the more expensive you make it for employers to higher and the lower return they get from low skilled employees the less likely they are to hire, and the less wages are going to improve.

If you want capitalism to work better, you actually have to do several things. Long term, better education is probably the most important thing – which is why I feel Labour’s focus on the number of school places rather than the number of GOOD school places is sickening, let alone self-defeating. You have to reduce red-tape, to reduce the cost of doing business, especially when it comes to employment law. I know from personal experience that a lot of employers are reluctant to hire people unless they have to, because it is so hard (and potentionally expensive) to fire them if they or business conditions don’t work out as planned. I would also suggest getting rid of corporation taxes – those same taxes could be collected at different points in the value chain (for example, capital gains tax on dividends or income taxes from employees) but their removal would mean companies spend less time, effort and money minimising those taxes and the incentives are better aligned to growth.

8. Paul peter Smith

The basic problem here is most peoples delusion that economics is a science rather than a branch of politics.

9. Dissident


That’s why I long ago corrupted “economics” into “egonomics”

10. Planeshift

“. The phrase “economically illiterate” has long been used to smear leftists as unrealistic utopian dreamers”

Considering one of the right wingers once called Paul Krugman economically illiterate, I’m suprised anyone regards the insult as meaningful.

‘It is economically illiterate to ignore the fact that, throughout the west, there has been a long-term collapse in demand for unskilled work.’

You need to explain how 600,000 Poles managed to find work in the UK leaving indigenous unemployment untouched.
You put your case much better than many who are being paid well to do so, but most people would opt for crony capitalism rather than crony socialism. The one couldn’t give a toss about you, but the other wants to control your life as well, while diminishing your economic chances at the same time.
Underlying all this is the lack of democracy at so many levels in the system.

12. Dissident

Capitalism democratic? Have you ever heard the saying
“if you cannot afford the roof over your head, it is the right to vote that becomes the joke”

13. The Son on Sunday

Give Danczuk a break. He’s an ordinary guy with a pedestrian intellect who sees the world from the perspective of a tabloid newspaper reader. He is ordinariness personified and not distinguished of accomplished in any particular way.

Seems to me that Simon believes that a bit of self-promotion about a subject like social security might land him a job in the Labour hierarchy.

He’s quite wrong of course.

The Labour elite don’t like inexpert mouthy oiks like him.

14. PottyTraining

I came to this conclusion as a major contributor on housepricecrash.uk until I realised that the zionist Jews are running the show (and they banned me for pointing this out on posts under PC pretensions which is what the zionists invented it for!)
But I thank most of the peeps on there who brought me up to speed on economics, Major Govt politico-corruption etc etc

Anyway best rant

The zionist bankers have zipped up the Nations finances by draining all the wealth out of our local economies through the promotion and money lending to create huge “CHAIN” shops (in identikit MALLS/highstreets) Supermarkets, Carpet shops, Car parts, Ironmongery etc.

They killed off hundreds of thousands of small business owners who had enough dosh to buy a house, car, furnishings, local grub, holiday etc etc.

These middle-upper earnings in local economies have been replaced by far lower paying jobs and at a lower level most jobs ‘created’ are part time, minimum wage, rent subsidised by taxpayer type rip-off jobs.

Everything about these “Chain” companies spells disaster for local economies
– as they suck All the profits back to THE CITY via head-office (why City Banks ALWAYS have ready cash to expand CHAINS vs zero to support small, local business)

The zionist, corrupt Banker organisation then skims off the top all monies returning to The City
(‘Cobra’ Chain Organisation Boomerang Retained Assets” – you read it here first! 7/7/2013) and help the bosses hide their profits off-shore with their corrupt Caribbean etc ‘octopus’ networks

Caribbean means cannibal in Spanish (City financial staff are “head-hunted”)
Therefore the zionists are carrying out ‘cannibalisation’ of UK assets
(jew-hopkins = Hannibal the cannibal)

They have sucked so much wealth out of our local economies they take longer and longer to recover from, say, the last banker-bust thru their corruption putting over a Million out of work.
(They will bullshit you with anything but the truth as to what is causing the everlasting recession whilst flogging us with the Austerity measures)

Simple as that
(when a joe-public thinks it through)

When you understand a little bit more – film “OLIVER” is VERY illuminating in more than one way! Those crafty b’stards!

15. Dissident

Interesting rant. Minor question, why are you saying it is entirely Zionist Jews who are to blame? The 1% are overwhemingly likely to be Anglo Saxon in this country. Filtering out the paranoia about the creed of the ‘guilty’ there is a pertinent observation about the consequences of the clone town phenomena you have described.

16. PottyTraining

You are right!

I forgot to point out to the ignorant masses that zionism is NOT a religion.

Therefore only the corrupt Talmud-zionists who deny Christ are involved.

A zionist can incorporate bent so-called christians, other heathens etc etc
(think the satanised elite families of USA, Bushes, Clintons, are best known)

The Sephardic Jews for instance, are treated like 2nd class citizens by the Israeli zionists in Israel.

The anti-christs are mentioned in The Bible.
I know the blasphemy of them which say they are Jews, and are not, but are the synagogue of Satan.

An example.
Churchill’s mother was a Jew from usa(had serpents tattooed all around her wrist)
Hitler was partly Jewish thru a Rothschild bastard Grandparent from Vienna.
The nazis didn’t want to fight the UK at start – so Churchill organised & took it on himself to send in a 3 bomber raid on an unarmed town called freiberg (freetown) which had no military industries.
They went in, in Triangle formation think of false star of david zionist israeli flag – its made of upright/inverted triangles to form the occult central logo.

The Jews on Wiki have completely falsified the information (it’s been switched since I started posting about the 2nd WW all-Jewstar leader lineup in a massive cover-up
(Bible again warns you, they will switch times, dates and places) if you check this.
(Thats what kindle is all about – digitising and rewriting our History (making books too expensive for plebs to buy
(Jews own majority of the publishing and paper industries!)

Leaders of WW2
Hitler= part Jew
Roosevelt = ancestral Dutch-Jew
Stalin = Jew (married and surrounded himself with Jewesses)
Eisenhauer = Jew
plus loads more.
(Norweigian doctor, Mengele Auchwitz sidekick = jew)
Lenin another with carefully covered up Jewish roots,
Marx – jew (used to get orders & financial payments/support from a Rothschild in Vienna meetings)
Stalin’s genocides (multi-millions) and his Siberian (JEW) death camp commander right hand man!

The staff on HPC – could not handle these revelations (too PC brainwashed)

All the TRIANGLE/west Indies-african slave trade(they even wore triangular hats) was largely run by JEWish merchants in Jewish ownned ships – linked to caribbean and New York.

They were also financiers (most London banks and Insurance companies got hugely wealthy from the slave trade.

They met in Coffee shops to organise insurance and shipping times – ring a Bell (coffee shops)

What do you put in coffee >>> sugar
Alan Sugar(ashkenazi jew) likes to show he’s a rough-diamond geezer with any pleb Apprentices beneath him.
Link this to Khazaria the Ashkenazi Motherland.

No more of this zionist White-Christian Guilt propaganda read this (dont get too angry with BBC-Media mis-leaders)
The whole lie being told to let in foreigners is based on the previous UK guilt thing – check out WHO

“In the period from the fifth to eight centuries [Jews] gradually took the place previously occupied by the Syrians as ‘international’ traders; and they continued, and perhaps developed, the trade in slaves.” [Parkes, p. 17]
“While the Jews were… never… the only traders, it is possible that the slave trade through north-eastern Europe to the Slav countries and the land trades to the East were for practical purposes Jewish monopolies. ” [Parkes, p. 25]
The previous citations come from James Parkes, a respected scholar who is considered philo-semitic, rather than hostile to the Jews. 

No less a Jewish source than the Encyclopedia Judaica states that:
 “The first Jews that Poles encountered must certainly have been traders, probably slave traders, of the type called in the 12th-century Jewish sources holekhei rusyah (travelers to Russia). [Encyclopedia Judaica, v. 13, p. 710]

“In the tenth century,” notes Israel Abrahams, “the Spanish Jews often owed their wealth to their trade in slaves.” [Abrahams, p. 98]

The many quotes are not meant to drown the reader in a sea of quotes, but rather to show him that throughout human history, Jews were not only slaveholders, but often slave traders and even more, often dominated the trade.

During the early Middle Ages, (approximately 500-1000 AD), Jewish merchants dominated the trade between the Christian and Islamic worlds. 

Using trade routes established by the Roman Empire, they traveled the world of the time covering territory from the Frankish Kingdom of the west through a network including North Africa, the Middle East, Central Asia to India and China. 

The routes in the East almost track that of the Silk Road of later history, and probably helped to lay the foundation for that famous road.

The Jewish merchants were known as the Radhanites.  The Director of Posts and Police (spymaster and Post Office General of his age),  for the Provence  of Jibal in the Abbasid Caliphate in the late 9th century described them as being sophisticated and multi-lingual.  The same description was given for the Jewish merchants of the early colonial era in the New World.  You might call them the gifts of the Diaspora. 

With Jews living in every land who would be fully conversant in the language of the nation in which they settled and, with many of their number traveling all the time, they acquired command of many of the languages of the lands through which they passed.  And with fellow Jews in many ports and towns, they naturally knew about trade opportunities before their rivals.  Also during this time in history the kingdoms of Europe and North Africa banned one another’s merchants from entering their ports, leaving the trade to the Jews. 

Corsairs raided each other’s ports, and the neutral Jews acted as go-betweens, a position that eventually evolved into that of “middle man”.

The trade was in oils, incense, steel weapons, furs and SLAVES . . . .

It goes on & on & on in the centuries back to the Apostles > Jews who say they Jews but are not!

17. Paul peter Smith

Potty Training’s SPECTACULAR rant aside, something like 90% of England is still owned by the descendants of the 100 odd Frankish nobles who hitched a ride with William the Bastard. A central deception of our current troubles is the idea of an ‘ Anglosphere ‘. That there exist’s an original sin associated with these isles. We certainly provided the haven but the Anglo-Saxon’s have been a broken and thoroughly dominated people since 1066, the evils perpetrated from these shores were not the design of the Anglo-Saxon’s, we were just the dumb ass, red neck muscle our new master’s needed.

18. Dissident

Spectacular wasn’t quite the word I would use but it was certainly eye popping! Obviously I was merely pointing out a tiny flaw. The Normans you are talking about obviously became the aristocrats of yesteryear. A great many are still part of the economic elite, but the sheer size of our economy and population makes the Norman descended ‘nobility’ a minority. Not forgetting a thousand years worth of sex of course…

19. PottyTraining

The zionist-faux jews have infiltrated-married into nearly all our heirarchy over the centuries.

Their vile Ashkenazi genes (and thought processes) have caused the elites to despise their underlings and start kicking us around.

Rothschilds and Goldsmiths (the elite of elite euro-faux-ashkenazi families) ‘will’ be very happy KATE grabbed the next king of England (whether she knows she is being ‘used’ or not!) Her grandmother is a GOLDSMITH.

Your commons course of the day >>>
Miliband bros = Zionist Jew
Cameron = Jew
Osborne = Jew
Cable = Jew
Balls-Cooper = Jews
Huhne- German jew surname (fekked the country up applying the mad Green laws – slyly removed thru revolving door with petty crime/two month sentence)
(Ditto uber Green Con master Tim Yeo – vested interest and director of loads of green subsidy, troughing companies)

FARAGE – a well known ‘Jewish’ surname (not identified yet)
+ Loads of others (comparing Boris to Disraeli even he was a Jew)

Every party we turn to – the answer is Jew – I do NOT think from their past 30+ years in charge that they have the interests of the population of the UK

The bank of england – traitor jew has been replaced by jew Carney after Jew Cameron has repeatedly made statements that “We have the best bankers in the World”
Well we obviously don’t as we had to import jew Carney in from Canada (who laid and left a ticking time bomb for their economy) to continue the jew-lead ‘tricks’ on the UK population!

Yet another conspiracy – try: Banking must pursue the holy grail of confidence, by Evelyn de Rothschild

But given this comment by Andrew Tyrie, chair of the Parliamentary Commission on Banking, confidence in banking would be novel and welcome:

“Taxpayers and customers have lost out. The economy has suffered. The reputation of the financial sector has been gravely damaged. Trust in banking has fallen to a new low.”

21. PottyTraining

The Private jew-owned Bank of England(ahem)
Jews set the Gold price twice a day!

Since 1914 they have debased our currency by inflationary measures so much that a pound is only worth fractions of a penny!

The Banking-Elites skimmed off all the wealth – that’s why your notes are just “unbacked” bog paper, your coins worthless alloys.

Thats why they love applying “QE” printing worthless notes for a temporary fix – debases the pound further and further (hidden by cheap Asian imports) whilst the wealth is sucked up to the 1%’ers

“Since 1914 they have debased our currency by inflationary measures so much that a pound is only worth fractions of a penny!”

Never mind 1914. Henry VIII seriously debased the coinage and the jews had been expelled by an edict of Edward I in 1290, centuries before Henry ascended the throne in 1509.

It was Oliver Cromwell as Protector who suggested that jews could consider settling in Britain again.

23. PottyTraining

Cromwell was a ‘useful idiot’ – they ‘fitted’ him up & chopped his head off soon after.

“The devoutly Protestant English Parliament, feeling their faith was under attack, decided to depose their rightful, but Catholic, king and replace him with his fervently Protestant nephew, William Prince of Orange, whose other claim to the English throne was his marriage to James II’s daughter Mary.”

I don’t like to say this but due to genetic deformaties that William suffered from (they run in Ashkenazi genes who have at least 20+
(why they run the genetic research companies in Switzerland(and genetic registers) and keep pumping out mis-information about Khazar ‘heritage’)

Anyway if you check the deformaties of Orange ‘Willy’ against common Ashkenazi genetic deformaties
– he is almost certainly a crypto-Jew pretending to be protestant.
(fekks all the stupid, mislead, irish protests up then)
(Loads moved to Flanders (netherlands – “diamonds are forever”) area (esp. germany) after fleeing Spain + France (disguising their surnames and real religion to escape persecution)

24. PottyTraining

Checked out Mussolini (cos he is obvious missing WW2 ‘character’)

Turns out his Mistress was a Jewess (and ‘shaped’ his fascist tendencies.)
She was an uber fascist-vixen from a wealthy vienna family who had moved to Italy to escape suffocating parents.

“Margherita Sarfatti (April 8, 1880, Venice — October 30, 1961, Cavallasca) was a Jewish Italian journalist, art critic, patron, collector, socialite, a prominent propaganda adviser of the National Fascist Party, and one of Benito Mussolini’s mistresses.”

So there you have it
– more Faux-Ashkenazi-Jew involvement right in top fascist-Italian power circles!!

Although Jews were persecuted and gulagged with nazi occupation – Mussolini apparently tried his best to make life a bit easier for them!
(something the mob didn’t take into account before hung/quartered with no trial)

25. Paul peter Smith

Just to be clear

26. Paul peter Smith

Partial post and on wrong site, sorry guys and gals!

27. Charlieman

“Although Jews were persecuted and gulagged with nazi occupation – Mussolini apparently tried his best to make life a bit easier for them!”

Jews were interned during Italy’s participation on the Axis side, which made it possible for Nazis to pluck up Jews in occupied territory after Italy left the war. About 7,500 Italian Jews were murdered.

28. Dissident

That blogger is still potty training. Small steps…

“She was an uber fascist-vixen”

Is it hot in here?

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