Could Clegg and Cameron end up expanding the state?
John Gray assesses the fortunes of the coalition.
By Daniel Trilling Published 16 October 2010 15:26In the current London Review of Books, the New Statesman's lead non-fiction reviewer John Gray assesses the fortunes of the coalition government. The most provocative part of his analysis is that while both Clegg and Cameron are ardent devotees of the free market, they may in, the long run, end up expanding state intervention in the economy:
As a consequence of the financial crisis, the market-based globalisation of the past couple of decades is giving way to a model in which states are the principal actors. Chinese state capitalism has weathered the global crisis better than any market liberal economy and even Russia is less burdened by debt. After the implosion of the American financial system emerging economies need no longer submit to the dictates of a 'Washington consensus' that was never implemented in Washington. It might be thought that the current phase of globalisation would allow a greater degree of international co-operation. In some ways, however, this new phase is more disorderly. The retreat of American power has left the world without a functioning monetary regime. Economic imbalances are surfacing in geopolitical rivalries and currency wars, and it is unclear how these conflicts will develop. What is evident is that the era in which states were ready to surrender control of their economies to market forces is over. The postwar welfare state may be history, but governments cannot risk leaving their populations without a shelter against chaos. If social democracy is not a viable option, neither is market liberalism.
A roll-back of the state of the magnitude that the coalition envisages will leave people more exposed to the turbulence of world markets than they have been for generations. Inevitably, they will seek protection.
[...]
Cameron and Clegg belong in a generation shaped by the ideas of the 1980s; but in forming the coalition they have demonstrated an impressive ability to break with the past. They may turn out to be the politicians who lead Britain into a new era of statism.
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14 comments
It is quite clear to me that Cameron and Clegg have absolutely no idea what the hijacked (from American television in particular Faux fox News)phrase 'Big Government' actually means!
and if Clegg and Cam whants to join in, as in a soccer game,
http://www.youtube.com/watch?v=2WCAIh-EaUY
more near Chester, and talent, unlike Dave/Clegg,
http://www.youtube.com/watch?v=QNOAWd__Qdw
Been meaning to read the LRB for ages and, as chance would have it, picked up this very edition for the first time yesterday. It might be a fanciful conclusion Gray reaches, but the earlier part of the article is a timely analysis of Clegg's market fundamentalism and a corrective to the betrayal narrative currently doing the rounds.
LRB is well worth a read, if you don't already get it. Not as a substitute for the NS, though!
"As a consequence of the financial crisis, the market-based globalisation of the past couple of decades is giving way to a model in which states are the principal actors."
This would be interesting if it weren't for the inconvenient fact that it's wrong. The main reason China is booming is because it was held back so much by past communist governments. It's silly to say that China is a "state-led" government because it is nothing of the sort - private businesses generate the vast majority of the wealth in china.
entirely possible!
Its a dead certainty. In order to establish 'fairness' and ensure it is observed, you need the mechanisms ie the bureacracy the administration, otherwise it just won't work.
But having said that, I still believe its a necessary step and unavoidble step to take, even if we wanted to.
How many times have we had to see Tory Govt introduce measures that we are stuck with and cannot repeal when Lbour gets into power.
Is the online revoloution catching quickly up with the "traditional" Tory party, blue-rinsed, since they were last in, in that very, very, far distant past of 1997, with their child now in their hands, discovering the new World, the child known as the LibDems.
Thatcher/Major world it suddenly isn't anymore. Mr C, feed as much biscuits to your pet dawg Cleggie as you want, but it will never change the feelings, and more importantly, the comments of the common man.
Wake up Dave, and smell the megabitespersecond...
False Dawn was an interesting book with some interesting insights into the failure of laisseez faire regimes wround the world ("the delusions of global Capitalism" if you will, especially coming from a former adviser to Margaret Thatcher's regime.
But the conclusion Gray comes to that Cameron and Clegg have shown an impressive ability to break with the past is bizarre and is left unexplained and to the reader's interpretation.
They are currently surpassing anything Thatcher would have even dared propose in the 1980's when Thatcher's Napalm approach to social cohesion left unemployment high and communities reeling, the devastating repurcussions of which are still being felt today. Cameron and Clegg are following a similarly tribalistic path reliant on decimating, scapegoating and stigmitising the "big bad State" and if we look at current propaganda in America where the minimal social provision offered there such as food stamps is also becoming demonised and
sliced back we can see that butchering the State doesn't protect future generations but actually puts them under greater threat of further retrenchment to what little welfare provision survived the last economic meltdown.
But did having no NHS and less investmnt in public services shield the American economy any better from the current economic crisis? No, because most of it was inherently self-inflicted. The less money is re-invested in society the less balanced an economy is and the more resources are drained and assets stripped down to subsidise only increasing disparity and a monopolisation of wage growth that sees profits evaporate into the arms of plundering shareholders whose appetite for profits at all cost has left eeconomies both side of the pond dangerously malnourished.
Far from showing a willingness to break from the past, Clegg and Cameron have only shown a desire not only to repeat past mistakes, but to exacerbate its impact by acaccelerating the demise of all the structual foundations that have held together social cohesion in the UK and that have contributed to social mobility in the post-war years.
Clegg has no past and the Liberal Democrats have always been a party Liberal only in terms of fluffy lightweight social policies that don't intefere with the aggressive market mechanisms that have gradually stripped the UK of its resources and assets and we're now left exposed and vulnerable and with a skeletal framework to instil economic growth as a consequence.
And may I say chairman, Blair and Brown handled the online communication explosion very well, allowed suitable gaps for entrepreneauralism not reported by the eat dog, we love the establishment,ahem!, media, let alone disaster control from September 2001 and all the Wall Street relocation knock-ons from that, nose-dove markets.
Blair and Brown are geniuses for handling that, truelly that. DON'T READ THE DAILY WAIL.
Check-up time for Dave and Clegg, the total amateurs, that speak and spout like an estate agent.
Call a GE, both, if you think, Dave, your support has rose, in the non-flowering sense.
And if the youtube state fall, which I hope won't be too soon, it is a attitude adjuster in the streets while it lasteds(!), Dave,
http://www.youtube.com/watch?v=g3cToJxub3c
welcome to :
http://www.shoeswholesale.us
This is a shopping paradise
Expanding the role of the state - I wonder? Having listened to the Today programme this morning reporting how the cuts will hurt the most vulnerable and then the wizard ruse of making the BBC fund free licences for the over 75s, (another opportunity for Gideon to bash the BBC?) this lot seem more like George Bush's revolutionary neo-cons. A shaky mandate from the electorate appears to be no restraint on the implementation of ideologically driven cuts that are likely to wreck our country. I can see a Dick Cheney look alike, but I'm still trying to spot Donald Rumsfeld!
daniel craig, from chester, area,
http://www.youtube.com/watch?v=8Jy7VB49jIc