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Laurie Penny: Don't be fooled by the Fred Goodwin sideshow

Gesture politics are good for only one thing: taking the edge off public outrage.

Bang goes the knighthood. Last week, one of the men most responsible for the financial crisis in Britain was stripped of his honorary title by the queen, following public outrage around the extravagant bonus that was due to be lavished upon his successor. The former Sir Fred Goodwin was chief executive of the Royal Bank of Scotland, which had to be bailed out by the British taxpayer and is still largely publicly owned. It is somewhat of an indictment on the limp, panting capitulation of the so-called opposition in Britain today that the confiscation of this meaningless imaginary trinket by the constitutional monarch actually looks like rebellion of a sort.

Every party has joined in the scrum for empty symbolic gestures to placate creeping public fury against bankers. The unfairness is terrifically difficult to spin: as disabled people and terminally ill cancer patients are threatened with pauperisation by the state, there are those at the top to whom the much vaunted "end of the something-for-nothing culture" seems by some margin not to apply. We are supposed to applaud meekly at this point. We are supposed to clap and be quiet as one or two of the best-reported travesties of financial feudalism are rectified in a manner likely to make little practical difference to the current and former chief executives of RBS, who remain fabulously wealthy men. Removing knighthoods from bank directors, of course, is no likelier to democratise contemporary capitalism than spending the winter in a tent city - like the Occupy protests, the trend is a portent rather than an agent of change. But what change?

Many liberal critics have grudgingly conceded that the removal of Fred Goodwin's knighthood and Stephen Hester's bonus are a step in the right direction. They are absolutely no such thing. They are a vacuous, cynical sideshow designed to distract attention from the fact that not a bloody thing is being done to rein in the power of the financial sector to do precisely whatever the hell it likes and force the global poor to pick up the tab. Away from the field of the symbolism Cameron and his Bullingdon bag-carriers have been lobbying hard at Davos against the proposed EU financial transactions tax, which might actually oblige actual banks to take slightly fewer crazy risks with other people's money. It's not much. It won't do anything to combat wage repression or the exploitation of workers on the breadline in Europe, and its sub-clauses make it laughably escapable for the larger multinationals, but it's a start - and our government is determined to stop it. It's okay, though, because Fred the Shred is no longer a knight of the realm.

Goodwin's humiliation is part of a broader cultural trend: the suggestion that the worst excesses of capitalism can be reined in by authoritarianism. You see it when the Archbishop of Canterbury suggests that bankers' bonuses and urban riots are equivalent symptoms of moral decline rather than of economic chaos - although they hardly come with equivalent penalties. You see it when the MP for Tottenham suggests that we'd have had fewer riots if only black and working-class youths had been beaten more thoroughly in childhood.

Free-market feudalism adapts to survive. Capitalism has always been able to neutralise its own discontents by absorbing them, and the politics of moral gesture are fast becoming a part of that process. There is an idea slowly growing in the public consciousness that Queen, country, duty, respect, faith and family can get us out of this fix. Removing a piece of royal frippery from a man who can do no more damage to our economy is part of this new code, the idea that fiscal ethics can be played out purely in the terrain of symbolism - although the young people serving jailtime for celebrating the August riots on Facebook could be forgiven for failing to see anything symbolic about their prison walls.

Gesture politics are good for only one thing: taking the edge off public outrage. Ultimately, walloping individual city workers is no more likely to make them behave than brutalising poor children is likely to keep them quiet the next time a young man is gunned down by police in inner London. All of this showmanship is about mood management - as if the entire country had been invited to go away and punch a pillow until we feel a bit calmer.

Gesture politics can give us a dirty thrill, but that's all they can do. We could insist that a tithe of bankers be sent every year to be publicly spanked with a traditional bristle birch in Hyde Park by a cohort of unemployed, low-waged and disabled people and indignant left-wing bloggers, and I'm sure we'd all feel a bit better about things, but at the end of the day they would still walk away rich and we would walk away poor. The idea that Britain is undergoing a moral rather than financial collapse - a moral collapse that can be rectified with selective public humiliation for the super-rich and beatings and prison for the rest of us - is not just deceptive. It's dangerous.

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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Richmond is a wake-up call for Labour's Brexit strategy

No one made Labour stand in Richmond Park. 

Oh, Labour Party. There was a way through.

No one made you stand in Richmond Park. You could have "struck a blow against the government", you could have shared the Lib Dem success. Instead, you lost both your dignity and your deposit. And to cap it all (Christian Wolmar, take a bow) you self-nominated for a Nobel Prize for Mansplaining.

It’s like the party strategist is locked in the bowels of HQ, endlessly looping in reverse Olivia Newton John’s "Making a Good Thing Better".

And no one can think that today marks the end of the party’s problems on Brexit.

But the thing is: there’s no need to Labour on. You can fix it.

Set the government some tests. Table some amendments: “The government shall negotiate having regard to…”

  • What would be good for our economy (boost investment, trade and jobs).
  • What would enhance fairness (help individuals and communities who have missed out over the last decades).
  • What would deliver sovereignty (magnify our democratic control over our destiny).
  • What would improve finances (what Brexit makes us better off, individually and collectively). 

And say that, if the government does not meet those tests, the Labour party will not support the Article 50 deal. You’ll take some pain today – but no matter, the general election is not for years. And if the tests are well crafted they will be easy to defend.

Then wait for the negotiations to conclude. If in 2019, Boris Johnson returns bearing cake for all, if the tests are achieved, Labour will, and rightly, support the government’s Brexit deal. There will be no second referendum. And MPs in Leave voting constituencies will bear no Brexit penalty at the polls.

But if he returns with thin gruel? If the economy has tanked, if inflation is rising and living standards have slumped, and the deficit has ballooned – what then? The only winners will be door manufacturers. Across the country they will be hard at work replacing those kicked down at constituency offices by voters demanding a fix. Labour will be joined in rejecting the deal from all across the floor: Labour will have shown the way.

Because the party reads the electorate today as wanting Brexit, it concludes it must deliver it. But, even for those who think a politician’s job is to channel the electorate, this thinking discloses an error in logic. The task is not to read the political dynamic of today. It is to position itself for the dynamic when it matters - at the next general election

And by setting some economic tests for a good Brexit, Labour can buy an option on that for free.

An earlier version of this argument appeared on Jolyon Maugham's blog Waiting For Tax.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.