The welfare debate and the end of reason

The way in which the entire debate on benefits seems to be taking place entirely outside the realms of logic seems unprecedented, says Alex Andreou.

I am quite frightened. There have always been some unreasonable people in politics. However, the way in which the entire debate on benefits seems to be taking place entirely outside the realms of logic, seems unprecedented. The way in which evidence is openly sneered at, is nothing short of medieval. The End of Reason.

People going to work early in the morning were stopped outside a London tube station and "vox-popped" by Channel 4 News.

"What do you think about the proposed cap on benefits?", they were asked. "If I have to get up and go to work, I don't see why they shouldn't have to", said one person. "I think it's fair," said another. Challenged by the reporter on whether it's fair on someone who has just been made redundant and has been paying tax and NI for years, she added "well, obviously not them".

The debate earlier in the House of Commons displayed equal levels of Daily Mail common sense. A hissing Kris Hopkins MP suggested that unemployment was "a lifestyle choice". Aidan Burley MP - you know, the one that thinks Nazis are an appropriate theme for a party - read out a letter from an unnamed constituent, relating how she had heard from an unnamed friend, that she was claiming five hundred pounds a week in benefits.

Asked about trial schemes today, Chris Grayling - the dude in charge of Justice, no less - said: “The last Government was obsessed with pilots. Sometimes you just have to believe in something and do it.” That's right. None of your namby-pamby, pinko-leftie evidence rubbish. YEAH. We just think of stuff and do it. And, as the last budget proved, then hastily undo it.

And so it goes, the End of Reason.

A national debate, orchestrated from the top down, which cares not a jot for facts or evidence. Facilitated by the poison pumped daily through our television set, which has seeped so deep into our national muscle memory that we are no longer able to distinguish between Jeremy Kyle guests, chosen because they make for good voyeurism, and ordinary decent people. Our reaction as considered as that of a patellar ligament to a doctor's reflex hammer.

So, how do we fight it? Anger may well provide the energy, but it is not the whole answer. Reason, logic, truth are - and have always been - the precision instruments for dissecting hysterical phobias.

The Conservatives will continue to speak the language of fear. It suits them; it is all they know. They released this image yesterday.

Look at that little arrow. You're only getting that now. Look at that BIG ARROW. Someone else is getting that. Look at what all that scrounger waste can win you. Iain, show the contestants what is behind door number 1. Doctors! And behind door number 2? Teachers! And let's open door number 3. A tax cut of ONE HUNDRED AND FIFTY POUNDS!

How exciting. So, what are we getting for sentencing two million innocent children to hunger? Well,  in fact, none of the above. NHS frontline staff numbers are declining, education is being hung, drawn and privatised and the tax burden on the majority of the electorate is higher than when the coalition took over.

But at least my arrow will get bigger, right?

Guess again. Quite contrary to the rhetoric of "making work pay" this measure does absolutely nothing to improve what work pays. As a matter of fact, making the 9 unemployed people chasing every 1 vacancy that much more desperate, is likely to have a deflationary effect on your wages. Your arrow is shrinking.

But at least this will get people back to work - the government keeps saying that. That's true, isn't it?

Wrong again. This bill does not create a single job. Indeed, the IMF recently admitted that cutting of precisely this sort has a disproportionately negative effect on growth. Essentially, by reducing the spending power of people who spend all their income on necessary goods and services (rather than those who squirrel it away in tropical island tax havens), local businesses sell less and the economy contracts.

What's that, Channel-4-News-lady-outside-the-tube-station? You work in a shop? Not for long. Soon, you will get your wish fulfilment. In a way. You won't have to resent those who don't get up to go to work. You will join them; with the added bonus of having the government that made you unemployed call you vermin. It may not be economic growth, but it is an opportunity for personal growth, don't you think?

So, what does it actually do, this bill? The short version: it attempts to plug a hole in the Government's forecasts, which keep getting revised down and down and further down, as if calculated by an over-enthusiastic limbo dancer. Only the savings are small, the hole is massive and their policies (including this one) are making it bigger. So, it's more like throwing a single shrimp into a shark's gaping mouth. Bad news for the shrimp, little effect on your chances of survival.

The added bonus is that nobody seems to be talking about huge multinationals paying no tax in this country, about which everybody seemed to be talking a month ago.

The End of Reason.

Several coalition MPs even suggested a link between rises in tax credits and the financial crisis. "Is there a direct correlation between the time that tax credits started," asked Marcus Jones MP, and "the start of the financial crisis"?

I would love to tell you that Hansard recorded the response: "Which crisis? The global one? The one that started in Iceland in financial institutions, spread to US  financial institutions and eventually reached the financial institutions of the UK? Of course there is no correlation, direct or indirect, you fucking numpty."

Sadly, the response by Alun Cairns MP was: "My Hon. Friend makes an excellent point". Pretty much any point is an excellent point, when you are witnessing the End of Reason.

An estate in Rochdale, named the most deprived area in the UK. Photo: Getty

Greek-born, Alex Andreou has a background in law and economics. He runs the Sturdy Beggars Theatre Company and blogs here You can find him on twitter @sturdyalex

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Chuka Umunna calls for "solidarity" among Labour MPs, whoever is voted leader

The full text of shadow business secretary Chuka Umunna's speech to Policy Network on election-winning ideas for Labour's future, and the weaknesses of the New Labour project.

There has never been an easy time to be a social democrat (or “democratic socialist” as we sometimes call ourselves in Britain). Whereas the right can demonise the poor and extol the virtues of the market, and the hard left can demonise the market and extol the role of the state, our position of constraining the domination of markets and reforming the state is, by definition, more complex.

It is nonetheless the case that social democracy has a historic responsibility, in every generation, to renew democracy and preserve a civic culture. This is achieved not through soundbites and slogans, but through the hard-headed development of a progressive politics that reconciles liberty and democracy, new comers and locals to our communities, business and workers, in a common life that preserves security, prosperity and peace.  This historic mission is all the more urgent now and my determination that we succeed has grown not weakened since our election defeat last May.

But, in order to be heard, it is necessary to make balanced and reasonable argument that both animates and inspires our movement, and which is popular and plausible with the people.  The first is pre-requisite to the second; and there is no choice to be made between your party’s fundamental principles and electability. They are mutually dependent - you cannot do one without the other.

We are in the midst of choosing a new leader and it is clear to anyone who has watched the UK Labour Party leadership election this summer that amongst a significant number there is a profound rage against Third Way politics – as pursued by the likes of Bill Clinton, Tony Blair, Gerhard Schröder and others - as a rejection of our fundamental values.

In the UK there is a view that New Labour accepted an uncritical accommodation with global capital that widened inequality, weakened organised labour and we were too close to the US Republicans and too far from the European left.

I do not believe this is fair, not least because we rescued many of our public services from the scrap heap when we came to office in 1997 and there were very significant achievements  we should celebrate.  New Labour renewed our National Health Service in a fundamental way; we built new schools and improved existing ones; we set up new children’s centres all over the country; we brought in a National Minimum Wage; we worked with others to bring peace to Northern Ireland; we introduced civil partnerships.  Just some of our achievements.

However, though we may take issue with the critique, I do not think we can simply dismiss out of hand those who hold critical views of New Labour. Like any government, the New Labour administration made mistakes - it could and should have achieved more, and done more to challenge the Right’s assumptions about the world. In the end, it is not unreasonable to be ambitious for what your party in government can achieve in building greater equality, liberty, democracy and sustainability. It is far better we acknowledge, not reject, this ambition for a better world, as we seek to forge a new politics of the common good fit for the future.

Realising our values in office has been disrupted by globalisation and the surge of technological forces that are displacing and reshaping industry after industry.

Some argue that globalisation as an ideological construct of the right. But we must recognise that we live in an increasingly integrated world in which markets have led to an unprecedented participation of excluded people in prosperity, a rise in living standards for hundreds of millions  of people and a literacy unprecedented in human history – this is particularly so in emerging economies like my father’s native Nigeria. And the internet has led to a level of accountability that has disturbed elites.

Yet, this has been combined with a concentration of ownership that needs to be challenged, of a subordination of politics that requires creative rather than reactive thinking, and these global forces have exacerbated inequalities as well as helped reduce poverty.

So it is important that we understand the sheer scale and impact of new technologies. At the moment we are engaged in a debate about Uber and its threat to one of the last vestiges of vocational labour markets left in London, those of the black taxi cabs and their attainment of 'The Knowledge'. But the reality is that within the next decade there will be the emergence of driverless cars so we have to intensify our exploration of how to support people in a knowledge economy and the realities of lifelong learning, as well as lifelong teaching. As people live longer we will have to think about how to engage them constructively in work and teaching in new ways.

Once again, I'm addressing all of this, Social Democracy requires a balanced view that domesticates the destructive energy of capital while recognising its creative energy, that recognises the need for new skills rather than simply the protection of old ones. A Social Democracy that recognises that internationalism requires co-operation between states and not a zero sum game that protectionism would encourage.

Above all, Social Democratic politics must recognise the importance of place, of the resources to be found in the local through which the pressures of globalisation can be mediated and shaped. Our job is to shape the future and neither to accept it as a passive fate nor to indulge the fantasy that we can dominate it but to work with the grain of change in order to renew our tradition, recognising the creativity of the workforce, the benefits of democracy and the importance of building a common life.  Sources of value are to be found in local traditions and institutions.

This also requires a recognition that though demonstration and protest are important,; but relationships and conversations are a far more effective way of building a movement for political change.

One of the huge weaknesses of New Labour was in its reliance on mobilisation from the centre rather than organising. It therefore allowed itself to be characterised as an elite project with wide popular support but it did not build a base for its support within the party across the country, and it did not develop leaders from the communities it represented. It was strong on policy but weak on strengthening democratic politics, particularly Labour politics.

Over half a million people are now members, supporters or affiliated supporters of our party, with hundreds of thousands joining in the last few weeks. Some have joined in order to thwart the pursuit of Labour values but many more have joined to further the pursuit of those values, including lots of young people. At a time when so many are walking away from centre left parties across the Western world and many young people do not vote let alone join a party, this is surely something to celebrate.

So it is vital that we now embrace our new joiners and harness the energy they can bring to renewing Labour’s connection with the people. First, we must help as many them as possible to become doorstep activists for our politics. Second, I have long argued UK Labour should campaign and organise not only to win elections but to affect tangible change through local community campaigns. We brought Arnie Graf, the Chicago community organiser who mentored President Obama in his early years, over from the U.S. to help teach us how to community organise more effectively. We should bring Arnie back over to finish the job and help empower our new joiners to be the change they want to see in every community – we need to build on the links they have with local groups and organisations.

I mentioned at the beginning that in every generation Social Democracy is besieged from left and right but the achievements of each generation are defined by the strength of a complex political tradition that strengthens solidarity through protecting democracy and liberty, a role for the state and the market and seeks to shape the future through an inclusive politics. Solidarity is key which is why we must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office.

Yes, these are troubled times for social democrats. All over Europe there is a sense among our traditional voters that we are remote and do not share their concerns or represent their interests or values.  There is surge of support for populist right wing parties from Denmark to France, of more left wing parties in Greece and Spain and in Britain too. There is renewal of imperial politics in Russia, the murderous and abhorrent regime of ISIL in the Middle East, volatility in the Chinese economy and in Europe a flow of immigration that causes fear and anxiety.

But, the task of Social Democracy in our time is to fashion a politics of hope that can bring together divided populations around justice, peace and prosperity so that we can govern ourselves democratically. We have seen worse than this and weathered the storm. I am looking forward, with great optimism to be being part of a generation that renews our relevance and popularity in the years to come.

Chuka Umunna is the shadow business secretary and the Labour MP for Streatham.