Jesse Norman MP attacks "rogue economist", badly

"Are you operating as a kind of rogue economist?" Jesse Norman MP attacks Jonathan Portes.

NIESR's Jonathan Portes has posted an edited transcript of his appearance in front of the Treasury Committee – specifically, his exchange with Jesse Norman MP (Conservative, Hereford and South Herefordshire).

Norman just can't quite seem to reconcile the fact that it is possible to be politically neutral, and still argue that the government's economic policy is not up to scratch. As a result, he heads down a line of questioning which doesn't leave him in the best light. You can read the whole exchange at Portes' site, but the most telling questions are excerpted below:

Jesse Norman: Just picking something at random, there was a recent piece of yours in The Spectator, “‘Plan A’ has failed.” That seems to me to be a pretty political judgment…

Jesse Norman: Let us just be perfectly clear that, whatever he said, there is a line here. The question is, are you transgressing it? If you are transgressing it, are you transgressing it with the institutional support of NIESR, or are you operating as a kind of rogue economist? I am very struck by the fact that you are not prepared to give the Government any credit at all on a 300 basis point difference between UK policy now versus Italy, and two years ago. That seems extraordinary to me…

Jesse Norman: You seem to be extraordinarily unwilling to give any credit or credibility. When the question of credibility is raised, your answer is to say, “Look at what actually happened”. Of course, credibility does not concern just what actually happened—it concerns whether the market believed that the Government’s direction of travel was right, given the circumstances at the time…

Jesse Norman: Just to be clear, you do not think that there is anything strange about not attributing any aspect of the UK’s long-term debt yield performance to Government credibility, and you do not think that there is anything strange about the lack of caveating in using a phase like "'Plan A' has failed" when the whole of economics relies on a series of judgments of probability.

Norman goes on like this at length. Portes' answers are commendably to the point, even if the video does reveal him to be as baffled as anyone would be by this line of questioning.

If your job is to comment on matters of economics, and you shy away from making statements which could have a political effect, you will not make very good comments on matters of economics. We can see that in organisations like the American Congressional Budget Office, which – unlike NIESR – actually is required to steer clear of any and all political questions. As a result, when someone like Paul Ryan submits his budget to the CBO, he can, in the words of Paul Krugman:

[Present] a plan to hurt the poor and reward the rich, actually increasing the deficit along the way, plus magic asterisks that supposedly reduced the debt by means unspecified.

Without the power to call bullshit on untrue or impossible claims, no economic commentator can be effective. The fact that Norman is attacking Portes for doing his job well just shows how besieged he and his party are feeling by the simple facts of economics.

As for the fact that Norman apparently thinks it is strange that Portes is "attributing any aspect of the UK’s long-term debt yield performance to Government credibility", enough has been written about the depressing effect of recession on long-term debt yields that it doesn't bear repeating in too much depth: sovereign debt yields can be low either because investors think there is little chance of the nation going bankrupt, or because there is scant competition from other potential investments pushing up the yield. Since the crash, the chance of Britain defaulting hasn't changed from basically-zero, but the growth rate – and thus the average return on investment from putting your money in the "real" economy – has plummeted.

In short, with the crushed economy, there is nowhere else for savers to reliably put their money than government bonds. That depresses yields, but contra Norman, has nothing to do with Government credibility.

Some credit must go to Norman for articulating the relatively important idea that economics can only talk about balances of probabilities. But to use that as a stick to beat Portes is similar to the people who attack evolution for "only being a theory". It conflates technical and lay language to make a point which is, fundamentally, anti-expertise.

Not that anyone was likely to confuse Jesse Norman for someone in favour of expertise after this hearing.

Jonathan Portes at the committee hearing.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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No, Jeremy Corbyn did not refuse to condemn the IRA. Please stop saying he did

Guys, seriously.

Okay, I’ll bite. Someone’s gotta say it, so really might as well be me:

No, Jeremy Corbyn did not, this weekend, refuse to condemn the IRA. And no, his choice of words was not just “and all other forms of racism” all over again.

Can’t wait to read my mentions after this one.

Let’s take the two contentions there in order. The claim that Corbyn refused to condem the IRA relates to his appearance on Sky’s Sophy Ridge on Sunday programme yesterday. (For those who haven’t had the pleasure, it’s a weekly political programme, hosted by Sophy Ridge and broadcast on a Sunday. Don’t say I never teach you anything.)

Here’s how Sky’s website reported that interview:


The first paragraph of that story reads:

Labour leader Jeremy Corbyn has been criticised after he refused five times to directly condemn the IRA in an interview with Sky News.

The funny thing is, though, that the third paragraph of that story is this:

He said: “I condemn all the bombing by both the loyalists and the IRA.”

Apparently Jeremy Corbyn has been so widely criticised for refusing to condemn the IRA that people didn’t notice the bit where he specifically said that he condemned the IRA.

Hasn’t he done this before, though? Corbyn’s inability to say he that opposed anti-semitism without appending “and all other forms of racism” was widely – and, to my mind, rightly – criticised. These were weasel words, people argued: an attempt to deflect from a narrow subject where the hard left has often been in the wrong, to a broader one where it wasn’t.

Well, that pissed me off too: an inability to say simply “I oppose anti-semitism” made it look like he did not really think anti-semitism was that big a problem, an impression not relieved by, well, take your pick.

But no, to my mind, this....

“I condemn all the bombing by both the loyalists and the IRA.”, despite its obvious structural similarities, not the same thing.

That’s because the “all other forms of racism thing” is an attempt to distract by bringing in something un-related. It implies that you can’t possibly be soft on anti-semitism if you were tough on Islamophobia or apartheid, and experience shows that simply isn’t true.

But loyalist bombing were not unrelated to IRA ones: they’re very related indeed. There really were atrocities committed on both sides of the Troubles, and while the fatalities were not numerically balanced, neither were they orders of magnitude apart.

As a result, specifically condemning both sides as Corbyn did seems like an entirely reasonable position to take. Far creepier, indeed, is to minimise one set of atrocities to score political points about something else entirely.

The point I’m making here isn’t really about Corbyn at all. Historically, his position on Northern Ireland has been pro-Republican, rather than pro-peace, and I’d be lying if I said I was entirely comfortable with that.

No, the point I’m making is about the media, and its bias against Labour. Whatever he may have said in the past, whatever may be written on his heart, yesterday morning Jeremy Corbyn condemned IRA bombings. This was the correct thing to do. His words were nonetheless reported as “Jeremy Corbyn refuses to condemn IRA”.

I mean, I don’t generally hold with blaming the mainstream media for politicians’ failures, but it’s a bit rum isn’t it?

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. You can find him on Twitter or Facebook.

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