Ed Miliband. Photo: Getty
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While the Tories claim that growth is back, Ed Miliband will seize the Inequality Moment

Discussion of the gap between rich and poor has gone mainstream.

In autumn 2003, a new class called “What’s Left? The Politics of Social Justice” began at Harvard University. The visiting lecturer played a video of a Newsnight interview with Tony Blair in the run-up to the 2001 election. In the clip, Jeremy Paxman asked the then prime minister six times whether the gap between rich and poor mattered – and six times he dodged the question. “It’s not a burning ambition for me to make sure that David Beckham earns less money,” was one response.

The lecturer was Ed Miliband, then a 33-year-old special adviser in Blair’s government, on a sabbatical in the US. Inequality bothered Miliband much more than his boss. In June 2013, the Institute for Fiscal Studies concluded that between 1997 and 2010, “Those right at the top saw their incomes increase very substantially with the result that… overall inequality nudged up slightly.” A friend of Miliband’s from his Harvard days told me that the failure to tackle the gap between the rich and the rest was “a key source of his dissatisfaction with Blair and New Labour” during this period.

More than a decade later, the leader of the Labour Party believes that “tackling inequality is the new centre ground of politics”, to quote from his Hugo Young Lecture on 10 February. His closest adviser, the academic and peer Stewart Wood, leads the charge on inequality inside Miliband’s office. “Ed’s concern to stop Britain continuing down the path of growing inequality, to the detriment of social justice and our economic health, will be central to any government that he leads,” Wood tells me.

But aren’t all Labour leaders – with the exception of Blair and maybe Gordon Brown – concerned with the gap between rich and poor? Perhaps. However, the difference is that inequality is no longer a niche issue.

Forget Occupy Wall Street – how about the new mayor of New York, Bill de Blasio, elected on a populist pledge to tackle the Big Apple’s “tale of two cities”? Or the new darling of the US Democratic Party, Senator Elizabeth Warren of Massachusetts, who has called for a minimum wage hike to “stop income inequality in America”? Or even the US president? In a speech in December, Barack Obama called the income gap “the defining challenge of our time”.

Listen also to the words of the Pope. “While the earnings of a minority are growing exponentially, so, too, is the gap separating the majority from the prosperity enjoyed by the happy few,” the pontiff wrote in November. Then there’s the IMF, which said in February that inequality hinders growth.

Miliband invoked both de Blasio and the Pope in his Hugo Young Lecture; he often cites their names and Warren’s in private as well. “Whose recovery is this?” has replaced “Too far, too fast” as the economic mantra of choice in his office. Miliband believes the paradigm has shifted. The public is fed up with the rise and rise of the super-rich – the 1 percenters – at the expense of everyone else. Consider the polling: 74 per cent of voters believe the gap between rich and poor is widening (ComRes); 60 per cent say the Autumn Statement was good for “rich people”, compared to just 21 per cent who say it was good for “people like me” (Ipsos MORI); and a majority of voters (64 per cent) think company bosses shouldn’t be paid in excess of ten times more than their lowest-paid employees (Survation).

Yet, between 1985 and 2008, the top 10 per cent went from receiving incomes that were eight times higher than the bottom 10 per cent to incomes that were 12 times higher. According to the High Pay Centre, the chief executives of Britain’s biggest companies earned more money in the first three days of the year than the average worker will make over 12 months.

On 10 March, Capital in the 21st Century, by the French economist Thomas Piketty, is published in English. Described as “one of the watershed books in economic thinking” by the World Bank’s Branko Milanovic, it argues that the main driver of soaring inequality – the tendency of returns on capital to exceed the rate of economic growth – is hard-wired into modern capitalism and threatens to undermine modern democracy. The author’s solution? A global wealth tax.

Such utopian thinking won’t help Miliband but to pretend that Labour policies – such as a levy on bankers’ bonuses, a 50p top rate of tax, a mansion tax and a living wage – won’t make a dent in income inequality is disingenuous. Wood, a fan of the book, says: “We must respond to [Piketty’s] challenge with ambition and imagination, not with pessimism.” Labour, he tells me, “needs to set itself the task of reforming the way our economies work so that higher productivity and lower inequality go together”.

This isn’t just about economics. The politics matter, too. Pledging to tackle inequality – within the rubric of “Whose recovery is this?” – helps Labour neutralise the positive Tory narrative of “Growth is back”. Crucially, it offers Miliband his own brand of progressive populism to challenge the right-wing, anti-welfare populism of the Conservatives. This is the Inequality Moment. Yet the Tories, with their historic aversion to any mention of the “I” word, will struggle to answer the question: “Whose recovery is this?” Miliband’s calculation is that voters won’t. 

Mehdi Hasan is a contributing writer for the New Statesman and the political director of the Huffington Post UK, where this column is crossposted

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 05 March 2014 issue of the New Statesman, Putin's power game

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“Stop treating antibiotics like sweets”: the threat we face from antibioitic resistance

Currently, 700,000 people die per year from the resistance of microbes to medicine, and it is predicted that 10 million people will die per year by 2050.

Got a cold? Take some antibiotics. Feeling under the weather? Penicillin will patch you up. Or so the common advice goes. However, unless we start to rethink our dependency on antibiotics, a death every three seconds is the threat we potentially face from evolving resistance by microorganisms to the drugs. The stark warning was issued following a review which analysed the consequences we could face from needless administering of antibiotics.

The antimicrobial resistance (AMR) review was led by economist Jim O’Neill, who was tasked by the prime minister in 2014 with investigating the impact of growing resistance. Currently, 700,000 people die per year from the resistance of microbes to medicine, and the report predicts that 10 million people will die per year by 2050. An overwhelming global expense of $100trn will be the price to pay unless incisive, collaborative action is taken.

Antimicrobial resistance (as referred to in the title of the report) is an umbrella term for the resistance developed by microorganisms to drugs specifically designed to combat the infections they cause. Microorganisms include things such as bacteria, fungi, viruses and parasites. The report especially focused on the ramifications of increased resistance of microorganisms to anitbiotics.

Many medical procedures are dependent on the effectiveness of drugs such as antibiotics: treatments for cancer patients and antibiotic prophylaxis during surgeries, for example. All could be under threat by increased resistance. The continuing rise of resistant superbugs and the impotence of antibiotics would pose “as big a risk as terrorism”. A post-antibiotic world would spell dystopia.

Bacterial microbes develop resistance through evolutionary-based natural selection. Mutations to their genetic makeup are passed on to other bacteria through an exchange of plasmid DNA. Unnecessary prescriptions by doctors and inappropriate antibiotic usage by patients (such as half-finishing a course) also contribute. Over the years, a number of bacteria and viruses have found a way to counteract antibiotics used against them: E. Coli, malaria, tuberculosis and Staphylococcus aureus, to name a few.

The report employed the consultancy firms KPMG and Rand to undertake the analyses, and O’Neill outlines 10 different measures to tackle the issue. Key areas of focus include: global campaigns to expand public awareness, the upholding of financial and economic measures by pharmaceutical companies in the development of new medicines and vaccines as alternatives, greater sanitation to prevent infections spreading, and the creation of a Global Innovation Fund which will enable collective research.

O’Neill told the BBC:

“We need to inform in different ways, all over the world, why it’s crucial we stop treating our antibiotics like sweets. If we don’t solve the problem we are heading to the dark ages; we will have a lot of people dying. We have made some pretty challenging recommendations which require everybody to get out of the comfort zone, because if we don’t then we aren’t going to be able to solve this problem.”

In the foreword of the report, O’Neill states that over 1 million people have died from developing resistance since 2014. The urgency in tackling this issue is clear, which is why he has offered an incentive to companies to develop new treatments - a reward of more than $1 billion will be given to those who bring a successful new treatment to the market.

According to the report, the cost of successful global action would equate to $40bn over the next decade, which could result in the development of 15 new antibiotics. Small cuts to health budgets and a tax on antibiotics have been proposed as ways of achieving the financial quota for drug research.

Though the report has highlighted the severity of antibiotic resistance, some believe that the full extent of the matter isn’t sufficiently explored. O’Neill mentions that there are some secondary effects which haven’t been taken into account “such as the risks in carrying out caesarean sections, hip replacements, or gut surgery”. This suggests that alternative remedies should be found for non-surgical procedures, so that antibiotics aren’t made redundant in environments where they are most needed.

Since the analysis began in 2014, new types of resistance have surfaced, including a resistance to colistin, a drug which is currently used as a last-resort. Its affordability resulted in increased use, particularly as a component of animal feed, meaning greater opportunity for superbugs to develop resistance to even our most dependable of antibiotics.

Widespread drug resistance would prove to be a big issue for many charities tackling infections around the world. Dr Grania Bridgen from Médecins Sans Frontières told the BBC that the report addresses a “broad market failure”, which is important but isn’t enough.

Despite the mixed response to the report, it has had a seal of approval from the Wellcome Trust and the Department of Health. Speaking earlier this year, Chancellor George Osborne stated this issue “is not just a health problem but an economic one, too. The cost of doing nothing, both in terms of lives lost and money wasted, is too great, and the world needs to come together to agree a common approach.”

If antibiotics are to remain potent antidotes to infectious diseases in the future, we need to put a plan in motion now.