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Laurie Penny: Internship auctions and a lost generation

To criticism that a lot of people could be priced out, the response is, “That’s life.”

On the bus this morning, a young father was distributing pocket money to his three small children. The eldest was kicking the back of my chair in bone-jarringly rhythmic anticipation of being taken to town for a day's shopping, but when he received his small handout, the kicking stopped.

"I'm not going to spend my £3, Dad," announced the boy, "I'm going to save it, and then I’m going to save all my pocket money, and then I can go to university and get a good job." This may, of course, have been the sort of cunning ploy to wheedle extra cash out of a parent that anyone who was ever a smart-arse seven-year-old will recognise.

It speaks volumes about the state of social equality, though, that while this primary school pupil from inner London was contemplating forfeiting an entire childhood's worth of treats to afford a chance at higher education and fulfilling work, wealthy Oxford graduates were taking up prestigious internships that they had purchased at a lavish charity auction held at the university last month.

Students who attended the opulent Oxford Red Dress Couture Ball, tickets for which were priced at up to £300 (though most cost £40), were able to bid thousands of pounds for coveted professional placements with law firms and fashion designers.

A mini-pupillage with the barrister Neil Kitchener QC was under the hammer, as were designer gowns, hotel breaks and other goodies available only to the extremely well-off. Sam Frieman, co-organiser of the auction, told the Cherwell that "you can only come to the auction if you have paid for a ticket. In response to the criticism that a lot of people could be priced out, I would say, 'That's life.' "

Internships like these are now prerequisites for many jobs, and most interns work extremely hard to obtain and finance work placements. "As someone from a low-income, East Midlands background, this auction is another reminder that I'm at a disadvantage because I can't afford an internship,” said a recent Oxford graduate, Kate Gresswell, 21.

Relative inequality within the Oxbridge system is hardly the pressing issue of our times, but if even the cleverest Oxford graduates are finding that money matters more than merit something has gone terribly, terribly wrong with our employment equations.

The internship system is already expensive enough to exclude all but the richest and most fortunate young people from popular jobs.

I could pretend, for example, that it's my winning smile and genius that have enabled me to find work as a journalist -- but a year's unpaid interning, during which I survived on a small inheritance from a dead relative, had just as much to do with it.

Today, any graduate or school-leaver without the means to support themselves in London while working for free can forget about a career in journalism, politics, the arts, finance, the legal profession or any of a number of other sectors whose business models are now based around a lower tier of unpaid labour.

After the relative levelling of university, class reasserts itself with whiplash force as graduates from low-income backgrounds find the doors of opportunity slammed in their face.

Last week, the Chartered Institute of Personnel and Development called for employers to be obliged legally to pay interns a minimum wage of £2.50 an hour, but such a step is unlikely to be taken by the coalition, which has already made it breathtakingly clear that preventing young people from falling through the cracks in our society is not likely to be a priority any time soon.

With 70 applicants for every new vacancy, with almost a million young people unemployed and with millions more languishing in insecure, temporary and poorly paid work, the job market is now open only to those who can afford to buy their way in.

The Telegraph reports that across the country hundreds of placements are being sold or brokered, often at similar auctions for the wealthy, where the fact that proceeds go to charity gives the new nobility yet another reason to be smug about giving themselves the life chances that previous generations enjoyed for free.

For the few of us who are wealthy enough to finance ourselves through work placements, only a firm push is needed to force open the doors of opportunity. Without a co-ordinated effort to reverse this regressive trend, the years to come will be littered with wasted potential and filled with disappointment for young people with nothing to bring to the table but talent, creativity and ambition.

(*Disclosure: the New Statesman employs unpaid interns.)

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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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman