Equality must be at the centre of a vision for a better society

The challenge is to have sufficient imagination that we construct a sufficiently radical alternative.

Even hard-bitten progressives are shocked by food banks. We talk about austerity and the damage to our society, but the reality of extreme poverty, of foodbanks, teachers bringing in breakfast for starving children, families moving because of cuts in benefit, an explosion of Wonga loans, still shocks and surprises.  Many of us will want to get busy campaigning, marching with the TUC on the 20 October. But we need to do more.

We need to reassert that equality is a central concern for progressives. Class, the Centre for Labour and Social Studies, the trade-union backed Think Tank, today publishes Why Inequality Matters. A popular version of the seminal The Spirit Level, it argues compellingly that inequality has been rising, and that inequality is bad for society as well as those who suffer directly.  Wilkinson and Pickett’s book  was inspirational, and began to shift the terms of debate. Peter Mandelson’s infamous “We are intensely relaxed about people getting filthy rich” was firmly thrown in the dustbin of history. This pamphlet is an attempt to more widely develop these arguments, to ensure that the alternatives to Austerity embrace startegies for equality at their heart.

Ed Miliband’s talk of “predistribution”, while somewhat wonkish, certainly seem to be on the same page. As does Len McCluskey ‘s call this week for a £1 increase in the minimum wage. Economists such as Paul Krugman, Robert Reich and Stewart Lansley have increasingly stressed that more equality is an essential precondition for more stable economies less prone to recession. The filthy rich don’t spend their money, while working people spend their money and increase demand.

Joseph Stiglitz, another Nobel prize winner, in his most recent book, The Price of Inequality, develops these arguments providing a powerful critique of free market ideas. He also links inequality to the argument that flexible labour markets contribute to economic strength, arguing instead that stronger worker protections correct an imbalance of power. Weakened unions have thus contributed to greater inequality – an important argument in support of fair laws for unions to replace current restrictive legislation.

The Spirit Level and the widespread dissemination of this pamphlet and the new popularity of the importance of equality may be compared to the publication in 1931 of R H Tawney’s Equality. Tawney, Beveridge and Keynes were all part of the ideological development that was to become dominant in the war years. A set of ideas that underpinned political development. Ideas that contributed to the Social democratic settlement of 1945, and ushered in the welfare state.

The challenge for today is to have sufficient imagination that we construct a sufficiently radical alternative, with equality embedded, that can be a new settlement for our times. The lurch to the right of the cabinet reshuffle demonstrates that while the left may see the bankruptcy of the Tory response to the crisis, they are confidently pursing the dismantlement of our welfare state. Far from conceding the defeat of neo-liberalism , the Tory right, as with Mitt Romney in the US, would take us down an ultra-neo-Liberal road. With carefree abandon, they would happily see an impoverished society, ruled by the one per cent - a scorched earth apocalyptic vision.

This is a world where triangulation is meaningless; where our responsibility is to construct a compelling vision of a credible alternative. Equality at the centre of such a vision, for a better society  for all, and better conditions for working people, provides the basis also for constructing the necessary alliances across society to become a compelling majority.

After a decade of disillusion and estrangement of people from politics, a new grit is appearing, the necessity of political involvement, the beginning of a new passion for political change. Ed Miliband’s Labour Party is on the right track if it can embrace these ideas, and turn the early ideas, the notion of constructing a new settlement into convincing policy positions.

Our intention in publishing this pamphlet, indeed the whokle purpose of this new think tank, is to generate debate across the labour movement. If we can shift the terms of debate in a progressive direction, we will be delighted.

Will we look back in twenty years and say – The Spirit Level and the pamphlet Why Inequality Matters were decisive contributors to the mood which won the 2015 election and propelled Britain towards a new progressive settlement? A bit ambitious perhaps, but on the other hand…..

Steve Hart is chair of of Class and political director of Unite

Ed Miliband’s Labour Party is on the right track. Photograph: Getty Images
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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage