Why Vince Cable is no Marxist

The Business Secretary’s arguments owe more to Adam Smith than they do to Karl Marx.

The Lib Dem conference has so far produced few memorable speeches, but Vince Cable's widely trailed address should prove an exception. He will warn that the current system "takes no prisoners and kills competition where it can" and that markets are "often irrational and rigged", and he will promise to shine a "harsh light into the murky world of corporate behaviour".

Inevitably, the free-market right has interpreted Cable's speech as an attack not on unfettered markets, but on capitalism tout court. Richard Lambert of the CBI criticised Cable's "odd" and "emotional" language, and Lambert's predecessor Digby Jones accused the Business Secretary of "rabble-rousing".

Yet Cable's arguments owe more to Adam Smith than they do to Karl Marx. His words reflect the centuries-old awareness that the free market is not synonymous with competition, or with the public interest.

As Smith, that great apostle of capitalism, argued:

The interest of the dealers, in any particular branch and trade or manufactures, is always in some respects different from, and even opposite to, that of the public.

Which now looks like a rather prescient comment on the British banking sector. Elsewhere, on the self-interested nature of industry, he pointed out:

Our merchants and master-manufacturers complain much of the bad effects of high wages in raising the price of their goods both at home and abroad. They say nothing concerning the bad effects of high profits. They are silent in regard to the pernicious effects of their own gains. They complain only of those of other people.

What Cable's critics are too intellectually barren to acknowledge is that there are alternatives to the finance-dominated, Anglo-Saxon model beyond that of state socialism. The Swedes do capitalism, the Americans do capitalism, the French do capitalism, even the Chinese do capitalism. But they all do it in very different ways.

When Richard Lambert sneers that it "will be interesting to hear [Cable's] ideas for an alternative", he fails to acknowledge this reality. But at least some of our political class may be about to.

UPDATE: Cable left in his attack on capitalism, but added a reference to Adam Smith that wasn't in the text last night. Perhaps the Business Secretary read The Staggers over breakfast?

His words: "Capitalism takes no prisoners and kills competition where it can, as Adam Smith explained over 200 years ago."

George Eaton is political editor of the New Statesman.

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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.