Trade unions: No room for romance

Economists don't dominate British politics. In fact, they aren't listened to enough.

Whatever happened to the passion of post-war British politics?

What became of: "U-turn if you want to"?; of "The only limits of power are the bounds of belief"?; of Arthur Scargill and Jimmy Reid? Of the drys and the wets? Of volatile picket lines and rousing demos? And beyond our shores, where are the Mitterands, Kohls, Gorbachevs and de Klerks of today? The Occupy movement swept loudly across the globe – and there’s not a soundbite to show for it.

Perhaps 24-hour news channels and social media make it easier to communicate policy without using impassioned oratory to create a memorable message. But it is more fundamental than that: mainstream politics itself has moved to the centre. Blair and Cameron dragged their respective parties kicking and screaming into the centre ground, because it is where the votes are. For Blair’s New Labour, this meant shaking off the stereotypes of socialism; for Cameron, the "nasty party" image. And recently, there is a more potent force at work:

Economics.

When times are good, economists are seen as tweed-wearing philosophers, their Nobel prizes viewed alongside those for Literature and Peace. When confident, efficient markets are creating growth, there is no need for academic theorists.

But as soon as recession looms, they are dusted off and brought out as scientific advisers, their theories and models no less venerated than those that uncovered the Higgs boson. Radical party ideologies take a back seat to the rational, value-free, scientific rigour of the dismal science. Already, Greece and Italy have surrendered their governments to economic technocrats.

Ironically, the economics profession itself is growing healthily. In the 1930s, following the Great Depression, enrollments in economics degrees shot up, and a recent paper shows that this trend has been replicated after the latest global financial crisis (the author is a guilty passenger on this bandwagon). Both The Economist and the Financial Times have reported record circulation figures this year.

So if the science of economics reigns in Westminster today, what kind of policies should we expect?

The central tenet of economics is the efficient allocation of resources. Therefore we might expect Government to become a vehicle for cost-benefit analyses and utilitarian policies. But Britain still has a fully elected government – shouldn’t it govern according to the ideology those who elected it expected? Economics tries to be value free. But governments are supposed to make value judgements; to select policies that their voters have given them a mandate to enact – and the vast majority of voters are not economists.

However, for the time being, polls continue to show that fixing the economy is by far the most important issue to voters. This gives both sides of the political spectrum a unique opportunity.

Just as the nationalistic protectionism of the 1930s plunged the world economy into a depression, so the ideological policies of the last 30 years are to blame for much of the recent global crisis. The Euro project ignored decades of economic theory in order to pursue a political utopia. Freddie Mac and Fannie Mae were lent on by politicians to provide mortgages for poor people who clearly couldn’t afford them. And the banks were allowed to dish out leveraged loans and investments like punch at a party. A rational government would and should have made the unpopular decision to take the punchbowl away, but as Professor Brian Cox said this week on, well, This Week: "you might make it that you have to base your policies on evidence… but that would make it very hard to get elected".

Never has the time been better to change that. Just as businesses have recently had to make efficiency savings, so political parties should prune ideological policies that fly in the face of economic rationale. Joseph Schumpeter’s mantra of "creative destruction" should be applied to beliefs.

For the Tory party, this might mean ditching the Euroscepticism; the single market- and the immigration that comes with it- is an asset to this country. But far more pertinently, the time is right for Labour to renegotiate its relationship with the trade unions.

Try a Google search of the following terms: "economic benefits of immigration" – over 50,000 results; "economic benefits of the euro" – almost 3 million results; "economic benefits of trade unions" – just one result.

Trade unions force up wages meaning that employers can employ less people – they increase unemployment. This might seem against the grain of socialism but when viewed from a rational economic perspective it makes perfect sense: as long as the workers that have paid their Union fees get a better deal, why should Union bosses care about the wider economy?

This is especially important for one economist in particular: Ed Miliband. His speech at last Saturday’s Fabian conference was preceded by a Q&A with Jon Cruddas who spoke of the two sides of the Labour Party; the rational, pragmatic side of Progress and the Fabians and the "romantic" socialist side of the Trade unions.

As the dull, calculated rationale of economics continues to proliferate, there is little room in politics for romance or passion. And that is no bad thing. Most of us mere mortals are more concerned with employment and cheque-writing than empowerment and speech-writing.

For Ed Miliband, his love may long have been a red, red rose, but the time has come for that rose to be pruned.

Jon Cruddas launching his deputy leadership bid in 2007. Photograph: Getty Images

Dom Boyle is a British economist.

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Richmond is a victory for hope - now let's bring change across the country

The regressives are building their armies. 

Last night a regressive alliance was toppled. Despite being backed by both Ukip and the Conservative Party, Zac Goldsmith was rejected by the voters of Richmond Park.

Make no mistake, this result will rock the Conservative party – and in particularly dent their plans for a hard and painful Brexit. They may shrug off this vote in public, but their majority is thin and their management of the post-referendum process is becoming more chaotic by the day. This is a real moment, and those of us opposing their post-truth plans must seize it.

I’m really proud of the role that the Green party played in this election. Our local parties decided to show leadership by not standing this time and urging supporters to vote instead for the candidate that stood the best chance of winning for those of us that oppose Brexit. Greens’ votes could very well be "what made the difference" in this election (we received just over 3,500 votes in 2015 and Sarah Olney’s majority is 1,872) - though we’ll never know exactly where they went. Just as importantly though, I believe that the brave decision by the local Green party fundamentally changed the tone of the election.

When I went to Richmond last weekend, I met scores of people motivated to campaign for a "progressive alliance" because they recognised that something bigger than just one by election is at stake. We made a decision to demonstrate you can do politics differently, and I think we can fairly say that was vindicated. 

There are some already attacking me for helping get one more Liberal Democrat into Parliament. Let me be very clear: the Lib Dems' role in the Coalition was appalling – propping up a Conservative government hell bent on attacking our public services and overseeing a hike in child poverty. But Labour’s record of their last time in office isn't immune from criticism either – not just because of the illegal war in Iraq but also their introduction of tuition fees, privatisation of our health service and slavish worship of the City of London. They, like the Liberal Democrats, stood at the last election on an austerity manifesto. There is a reason that we remain different parties, but that doesn’t mean we shouldn't also seize opportunities like this to unite behind what we have in common. Olney is no perfect candidate but she has pledged to fight a hard Brexit, campaign against airport expansion and push for a fair voting system – surely progressives can agree that her win takes us forward rather than backwards?

Ultimately, last night was not just defeat of a regressive alliance but a victory for hope - a victory that's sorely needed on the back of of the division, loss and insecurity that seems to have marked much of the rest of this year. The truth is that getting to this point hasn’t been an easy process – and some people, including local Green party members have had criticisms which, as a democrat, I certainly take seriously. The old politics dies hard, and a new politics is not easy to forge in the short time we have. But standing still is not an option, nor is repeating the same mistakes of the past. The regressives are building their armies and we either make our alternative work or risk the left being out of power for a generation. 

With our NHS under sustained attack, our climate change laws threatened and the increasing risk of us becoming a tax haven floating on the edge of the Atlantic, the urgent need to think differently about how we win has never been greater. 

An anti-establishment wave is washing over Britain. History teaches us that can go one of two ways. For the many people who are utterly sick of politics as usual, perhaps the idea of politicians occasionally putting aside their differences for the good of the country is likely to appeal, and might help us rebuild trust among those who feel abandoned. So it's vital that we use this moment not just to talk among ourselves about how to work together but also as another spark to start doing things differently, in every community in Britain. That means listening to people, especially those who voted for Britain to leave the EU, hearing what they’re saying and working with them to affect change. Giving people real power, not just the illusion of it.

It means looking at ways to redistribute power and money in this country like never before, and knowing that a by-election in a leafy London suburb changes nothing for the vast majority of our country.

Today let us celebrate that the government's majority is smaller, and that people have voted for a candidate who used her victory speech to say that she would "stand up for an open, tolerant, united Britain".  But tomorrow let’s get started on something far bigger - because the new politics is not just about moments it's about movements, and it will only work if nobody is left behind.

 

Caroline Lucas is the MP for Brighton Pavilion.