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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The Women's March against Trump matters – but only if we keep fighting

We won’t win the battle for progressive ideas if we don’t battle in the first place.

Arron Banks, UKIP-funder, Brexit cheerleader and Gibraltar-based insurance salesman, took time out from Trump's inauguration to tweet me about my role in tomorrow's Women’s March Conservative values are in the ascendancy worldwide. Thankfully your values are finished. . . good”.

Just what about the idea of women and men marching for human rights causes such ill will? The sense it is somehow cheeky to say we will champion equality whoever is in office in America or around the world. After all, if progressives like me have lost the battle of ideas, what difference does it make whether we are marching, holding meetings or just moaning on the internet?

The only anti-democratic perspective is to argue that when someone has lost the argument they have to stop making one. When political parties lose elections they reflect, they listen, they learn but if they stand for something, they don’t disband. The same is true, now, for the broader context. We should not dismiss the necessity to learn, to listen, to reflect on the rise of Trump – or indeed reflect on the rise of the right in the UK  but reject the idea that we have to take a vow of silence if we want to win power again.

To march is not to ignore the challenges progressives face. It is to start to ask what are we prepared to do about it.

Historically, conservatives have had no such qualms about regrouping and remaining steadfast in the confidence they have something worth saying. In contrast, the left has always been good at absolving itself of the need to renew.

We spend our time seeking the perfect candidates, the perfect policy, the perfect campaign, as a precondition for action. It justifies doing nothing except sitting on the sidelines bemoaning the state of society.

We also seem to think that changing the world should be easier than reality suggests. The backlash we are now seeing against progressive policies was inevitable once we appeared to take these gains for granted and became arrogant and exclusive about the inevitability of our worldview. Our values demand the rebalancing of power, whether economic, social or cultural, and that means challenging those who currently have it. We may believe that a more equal world is one in which more will thrive, but that doesn’t mean those with entrenched privilege will give up their favoured status without a fight or that the public should express perpetual gratitude for our efforts via the ballot box either.  

Amongst the conferences, tweets and general rumblings there seem three schools of thought about what to do next. The first is Marxist  as in Groucho revisionism: to rise again we must water down our principles to accommodate where we believe the centre ground of politics to now be. Tone down our ideals in the hope that by such acquiescence we can eventually win back public support for our brand – if not our purpose. The very essence of a hollow victory.

The second is to stick to our guns and stick our heads in the sand, believing that eventually, when World War Three breaks out, the public will come grovelling back to us. To luxuriate in an unwillingness to see we are losing not just elected offices but the fight for our shared future.

But what if there really was a third way? It's not going to be easy, and it requires more than a hashtag or funny t-shirt. It’s about picking ourselves up, dusting ourselves down and starting to renew our call to arms in a way that makes sense for the modern world.

For the avoidance of doubt, if we march tomorrow and then go home satisfied we have made our point then we may as well not have marched at all. But if we march and continue to organise out of the networks we make, well, then that’s worth a Saturday in the cold. After all, we won’t win the battle of ideas, if we don’t battle.

We do have to change the way we work. We do have to have the courage not to live in our echo chambers alone. To go with respect and humility to debate and discuss the future of our communities and of our country.

And we have to come together to show there is a willingness not to ask a few brave souls to do that on their own. Not just at election times, but every day and in every corner of Britain, no matter how difficult it may feel.

Saturday is one part of that process of finding others willing not just to walk a mile with a placard, but to put in the hard yards to win the argument again for progressive values and vision. Maybe no one will show up. Maybe not many will keep going. But whilst there are folk with faith in each other, and in that alternative future, they’ll find a friend in me ready to work with them and will them on  and then Mr Banks really should be worried.