Laurie Penny: The Digital Economy Bill threatens creativity

In defence of the download.

Framing the greatest innovation in human communications since the printing press as an enemy of cultural progress was always going to be a tough sell for the music industry. Public rhetoric around the Digital Economy Bill has focused on "protecting artists" from the evils of free filesharing, which is supposed to plunge us into a new cultural ice age in exactly the same way that home taping killed music. But as the Bill enters its final stages of being rushed through parliament, young artists and innovators are refusing to buy the orthodoxy of copyright protection -and many are fighting back.

Across the country, cottage music agencies and artistic projects are incorporating free filesharing into their business models, in defiance of the commercial hegemony that the Digital Economy Bill seeks to protect. Simon and Julia Indelicate, of cult folk-punk group The Indelicates, set up Corporate Records to "reflect and delight in the post-internet music market". "We want our data to flow freely," said Simon. "It's not just filesharing that's bringing down the music industry, it's the entire abundant sea of music and art that's legally available online. The industry is going to fail whatever happens - so we're focusing on what we can build in its place."

The hostility of the imploding publishing and music industries to innovative young talent has led many emerging artists to find new outlets for their energies. "If I didn't have to work in a nursing home to support myself, I'd be less tired, but I wouldn't be any less creative or productive," says Julia Indelicate. "People who say they'll stop making music if they don't get paid, clearly care more about the money than the music, so they should probably stop anyway."

For young creatives, the notion of spending years networking in order to get signed by an agent is increasingly outdated, as self-publishing becomes ever more rewarding. "As a teenager, getting published seemed an impossible dream," said Deirdre Ruane, author of the popular blog Wasted Epiphanies. "Part of me is astonished that I can now post comic strips and watch hits come in from all over the world -- all of it enabled by free filesharing. What emerging artists need is eyes on their stuff, and anything that puts more obstacles in the way of that process stifles creativity."

The orthodoxy of signing a corporate deal does retain some hold over the imagination of young artists. Musicologist and blogger Adam Harper, 23, explains that "it's a rite of passage for young male teenagers to start rock bands, and it would be rare to find one of these bands, however unambitious, who harboured no trace of the fantasy of stardom and commercial success that hovers over every 'unsigned' band. Even the popular currency of the phrase 'unsigned bands' is a reflection of this teleological fantasy of music-making."

That fantasy, however, is fading. When the means of producing and distributing high-quality media from scratch can be installed in your bedroom for the cost of a trip to Skegness, why would a young artist sign over their creative and financial freedom to a middle-aged person who doesn't understand the internet? "We've sold more stuff through filesharing than we would have if we hadn't been able to spread the news about our work," says Julia Indelicate. "We used to be signed to a record company, but we ended up with less money, less control and worse publicity. Now we're unsigned, we're still touring, and the record label has folded."

The moral panic associated with free filesharing portrays young producers and consumers of culture as a ghastly mob of "pirates", an uncouth barbarian horde rampaging through the pristine edifices of the bourgeois artistic establishment. That panic is understandable: the creative vision of the internet generation, fully realised, would shake our understanding of how culture is owned and consumed to its very foundations. Projects such as Corporate Records and Records on Ribs make a glorious mockery of attempts to manufacture cultural scarcity in order to maximise profit, and copyright piracy continues despite any number of sinister adverts.

Media princes such as Mandelson's confidante, David Geffen - a man so vain that that song may actually have been about him - are right to be afraid. The young people protesting in Westminster this week are protecting more than their right to stream the new series of Gossip Girl; they are protecting an entire cultural paradigm, one in which the process of recommending, sampling and downloading nuggets of media and information is deeply ingrained. For young creatives who have grown up online, the notion of restricting internet access for any reason provokes a just and visceral horror -- and they will not accept antique copyright laws without a fight.

Laurie Penny is a freelance journalist and blogger. She blogs at Penny Red.

 

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump