Labour's economic challenge

Ed Miliband needs to make sure his colleagues understand the need for radical change.

The deputy leader of the Labour Party, Harriet Harman, appeared on the BBC's Andrew Marr Show this morning. Harman was asked by Marr about the new kind of economy envisaged by Ed Miliband in his speech to Labour conference last month. Her rather unconvincing answers tended to confirm the analysis of the chief economist of the IPPR Tony Dolphin, who argued here recently that it's much harder to articulate a new economic paradigm than it is simply to assert that things need to change.

Dolphin wrote that "Distinguishing between 'predators' and 'producers' was an unnecessary hostage to fortune". Questions about good and bad businesses drown out, Dolphin went on, the "arguments of thinkers such as Will Hutton, Anatole Kaletsky and William Baumol over different models of capitalism". Marr duly asked whether Top Shop boss Sir Philip Green was a predator or a producer. Harman replied somewhat uneasily that "it's not about individuals", rather confirming Dolphin's fears.

Miliband and Labour's main problem, according to Dolphin, is that "there is no new well-developed economic model - comparable to monetarism in the 1970s - sitting on the shelf waiting for him to pick it up and champion it. He therefore faces a tough decision. Does he want to tinker at the edges with the existing model - a bit more banking regulation here, an employee representative on a company board there? ... Or is he prepared to make the case for more radical change and to champion those independent voices in economics that are not heard enough? "

When Marr invited her to elaborate on Labour's vision of a new economy, Harman did make it sound as if all Labour has in mind is to tighten up the regulatory framework governing financial services. But I suspect Miliband doesn't want to take to the easier of the two options Dolphin described and does want to "make the case for radical change". If that's true, then he needs to make sure his colleagues, Harriet Harman included, understand just what he has in mind.

Jonathan Derbyshire is Managing Editor of Prospect. He was formerly Culture Editor of the New Statesman.

Show Hide image

Appreciate the full horror of Nigel Farage's pro-Trump speech

The former Ukip leader has appeared at a Donald Trump rally. It went exactly as you would expect.

It is with a heavy heart that I must announce Nigel Farage is at it again.

The on-again, off-again Ukip leader and current Member of the European Parliament has appeared at a Donald Trump rally to lend his support to the presidential candidate.

It was, predictably, distressing.

Farage started by telling his American audience why they, like he, should be positive.

"I come to you from the United Kingdom"

Okay, good start. Undeniably true.

"– with a message of hope –

Again, probably quite true.

Image: Clearly hopeful (Wikipedia Screenshot)

– and optimism.”

Ah.

Image: Nigel Farage in front of a poster showing immigrants who are definitely not European (Getty)

He continues: “If the little people, if the real people–”

Wait, what?

Why is Trump nodding sagely at this?

The little people?

Image: It's a plane with the name Trump on it (Wikimedia Commons)

THE LITTLE PEOPLE?

Image: It's the word Trump on the side of a skyscraper I can't cope with this (Pixel)

THE ONLY LITTLE PERSON CLOSE TO TRUMP IS RIDING A MASSIVE STUFFED LION

Image: I don't even know what to tell you. It's Trump and his wife and a child riding a stuffed lion. 

IN A PENTHOUSE

A PENTHOUSE WHICH LOOKS LIKE LIBERACE WAS LET LOOSE WITH THE GILT ON DAY FIVE OF A PARTICULARLY BAD BENDER

Image: So much gold. Just gold, everywhere.

HIS WIFE HAS SO MANY BAGS SHE HAS TO EMPLOY A BAG MAN TO CARRY THEM

Image: I did not even know there were so many styles of Louis Vuitton, and my dentists has a lot of old copies of Vogue.

Anyway. Back to Farage, who is telling the little people that they can win "against the forces of global corporatism".

 

Image: Aaaaarggghhhh (Wikipedia Screenshot)

Ugh. Okay. What next? Oh god, he's telling them they can have a Brexit moment.

“... you can beat Washington...”

“... if enough decent people...”

“...are prepared to stand up against the establishment”

Image: A screenshot from Donald Trump's Wikipedia page.

I think I need a lie down.

Watch the full clip here:

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland