A businessman pauses to check his phone outside the Bank of England. Photograph: Bloomberg
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The Age of Entitlement

The new super-rich have no allegiance, obligation or connection to wider society. They live in a mirror-lined bubble – and a legally entitled one. Can anything beyond another crash change things?

Nobody loved Bowater House in Knightsbridge. The demolition of this late-1950s, modernist mess in 2006 was greeted with general relief. Yet it did have one virtue. Through its core was cut a wide opening for a roadway that gave us all a view of Hyde Park and of a sinewy, thrilling Epstein sculpture of a family group, urged on by the god Pan and racing on to the green sward.

There is no such large opening in One Hyde Park, the building that replaced Bowater House. Instead, Pan has been relegated to the end of a much smaller public road that has been intimidatingly designed to look private. The great people’s invitation into the park has been lost. The public realm has not been abandoned altogether, however. At ground level there are shops, punctuated by some very limited planting. So, if the people care to struggle across the hellish confluence of roads that forms the heart of Knightsbridge, they can peer through the windows to see Abu Dhabi Islamic Bank, Rolex watches or McLaren cars. Things they cannot have.

One Hyde Park was developed by the Candy brothers and the Qataris and was designed by Rogers Stirk Harbour & Partners, the current incarnation of the once-idealistic Richard Rogers practice. The 86 flats start at £20m; a penthouse sold in 2010 for £140m. The building is an aesthetic, planning and social catastrophe. An inaccessible, menacing fortress looming over Knightsbridge, it symbolises the dark wealth of the entitled elite who have claimed the boroughs of Westminster and Kensington and Chelsea as their own. But it is just one big sign of a ruthless landgrab among many little ones.

Staff at the Kensington High Street branch of Carluccio’s – a pleasant, neighbourhood place – dread being sent over to South Ken. That’s banksterland. Mothers disrupt service with their giant baby buggies, the children are rude and even the toddlers snap their fingers at the waiters. Then there are the shops. In Knightsbridge’s “golden triangle” of streets and around Brompton Cross are all the “flagship stores” of the highest of high-end retailers. I used to like going there to watch and marvel at the very rich and to see the beauty that money could buy. Once in a while, feeling a bit flush, I might buy something. Not any longer.

Recently, in an idle moment, I wandered in - to the Ralph Lauren shop at Brompton Cross. I noticed a pair of shoes, quite nice, about £300, I reckoned, allowing for the location and the general flagshipness of the place. The shoes were £750, a price that bore no possible relation to either the cost of manufacture or the quality of the design. These people, I realised, don’t care about only fairly affluent me or my class any more. They’d rather I left, because they can sell all their stuff at any price, in effect, to the bonus boys and girls.

“Almost by definition, these things aren’t for you,” John Lanchester tells me on the phone. He is the author of Capital, the 2012 novel that defined the moral climate that led to the last financial crash. “The whole thing about luxury goods is that they’re an inter - national language. The prices don’t track the middle-class, aspirational market; they’re for the super-rich, who don’t really care what things cost. In fact, they want them to cost more, because the price signifies only that most people can’t afford them.” (Lanchester captured entitlement in the character of Arabella in Capital, a woman so ignorant, vain and greedy, she did not even understand the possibility of being unable to afford something. Now I see and hear Arabellas all around me when lunching in central London.)

Perhaps it was ever thus: the rich have always been different. But that’s not true. Some - thing big, something moral, has changed. Driving through Knightsbridge (occasionally one must) I noticed a huge, absurd, orange and, in London, practically undriveable Lamborghini illegally parked. Once, I would have been amused, but now I feel angry because I know – we all know – it was probably bought with stolen money.

“Shocking” is too soft a word to describe the crimes of the financial sector. They are almost thrilling in their creative abundance – laundering money for drugs cartels; defrauding old people, small businesses, investors and shareholders; rigging markets; sugarcoating dud loans to look like good ones; loading the world economy with ever greater levels of risk and throwing millions of people out of work. And so on. All the time, they were enriching nobody but themselves. The banks and their buddies have been on a crime spree that would have glazed over the eyes of Al Capone.

Yet here they still are, with their undriveable orange cars, their buggies, their dark fort - resses and their rancid sense of entitlement because, in short, they don’t get it. Apparently the bonus boys see “casino banking” as a flattering term rather than the insult intended. Furthermore, the use of vast sums taxpayers’ money to save the banks is seen as no more than their God-given right.

“I live near Wall Street,” the economist Jeffrey Sachs said at an event. “The sense of entitlement is beyond quantification. They could not figure out why anyone might be mad at them for having nearly destroyed the world economy, taken home $30bn a year of bonuses, gotten bailed out to the tune of another trillion dollars and then lobbied for no regulation afterwards . . . I don’t think they were kidding anyone except themselves. I think they don’t get it.”

But we get it and we don’t like the rich any more because they all seem tainted. Lanchester points out that real business people – those who do useful things – are as angry as we are, accusing the bankers of wrecking and discrediting capitalism. (I sympathise. I have always regarded myself as a conservative and still do, but these shenanigans have tainted even that gentle world. Like most true conservatives I know, I regard the failure forcibly to end these abuses as a disgrace and a grave threat to the social peace we crave.)

Certainly people’s attitudes to companies in general has changed. Energy suppliers, telcos, retailers are all treated with a grim, resigned mistrust. To be allowed to participate in the society of entitlement, you have to agree to be ripped off. In spite of this, globally, politicians have decided to ignore the insights and sense of justice of their electorates and shown no desire to restructure a failed and still dangerous system, not even to imprison the most egregious wrongdoers. So the Age of Entitlement endures. What does this mean for society as a whole?

First, it is necessary to understand the origins of this psychology of entitlement. Economically, it can be said to be neoliberalism, the cult of free markets and deregulation that swept the world from the 1970s onwards. In neoliberal thought, expressed most trenchantly by Milton Friedman, the job of a company was to obey the law and reward its shareholders; it was not obliged to take on the wider ethical and moral concerns of society. In the 1980s, this became “greed is good”, certainly not what Friedman meant. I witnessed the cult’s apotheosis at the World Economic Forum in Davos in the early 1990s – I sat in on a meeting at which sharky young businessmen more or less said they would trample on their grandmothers for the sake of the bottom line. Viciousness had been validated. That is the enduring view in the financial sector.

“There is no incentive in the financial world,” a very prominent insider told me, “to be moral.” The point is that society rewards company directors with the enormous blessing of limited liability and, in return, should expect them to behave not just technically within the law but responsibly as persons. Failing – or refusing – to understand this underpins the sense of entitlement. Because much of what they did was not tech - nically illegal, the bankers feel that they did nothing wrong. Yet, in our own lives, we know perfectly well that some of the worst things we can do are not illegal. The financiers’ defence is made even more hopeless by the banks having been anything but good neoliberal institutions. Far from believing in free markets, they acted like a cartel and did everything in their power to rig the markets in which they operated.

Coupled with this was a generational change, identified by Jean Twenge and W Keith Campbell in their book The Narcissism Epidemic: Living in the Age of Entitlement. From the late 1970s onwards, they detected a rise in narcissism among the young. Unlike the generation of the 1960s and early 1970s, these young people did not identify their goals as social or political but solely as personal. “There was a big shift in the 1980s away from the 1960s and 1970s,” Twenge told me, “. . . making a lot of money was no longer suspect. In the 1960s and 1970s it was not cool, but that flipped around.”

So, in the 1990s, a socially and politically quietist, narcissistic and self-seeking generation was well prepared to take advantage of the progressive deregulation of the financial system, primarily orchestrated by the then chairman of the Federal Reserve, Alan Greenspan, a card-carrying believer in the doctrines of the hyper-libertarian fruitcake Ayn Rand. After 1997, the British Labour Party drank disgracefully deeply of this toxic, superstitious cocktail. Peter Mandelson declared that he was “intensely relaxed” about people getting “filthy” rich. In the midst of what turned out to be one of the most lethal (and preventable) bubbles in financial history, this was one complacency too far.

Both psychologically and theoretically, therefore, the Age of Entitlement was firmly established by the mid-1990s; indeed, so firmly established was it that it was imper - vious even to the overwhelming evidence of its fragile foundations. The collapse of the hedge fund Long-Term Capital Management in 1998 nearly brought the US economy to its knees – even though it had Myron Scholes and Robert Merton, creators of the critical equations on which financial neoliberalism was based, on its board. The neolibs sailed on regardless.

And still they sail on. Throughout the crisis, the beneficiaries of the criminality and rigged markets into which neoliberalism had descended continued to enrich themselves. In 2012 the 100 richest people across the world grew $241bn richer, taking their total net wealth to $1.9trn. The poor and the middle classes, naturally, got poorer. Levels of inequality of a kind that threaten the social fabric – especially in the US and the UK – are one of the most alarming legacies of the Age of Entitlement. The crisis is not over; in fact, it may hardly have begun.

Part of the problem is the way the wealthy entitled have managed to make their world so easily selfsustaining. They are certainly good at outsmarting our elected leaders. “George Osborne and his friends go down to the City with some idea,” one hugely rich but very politically aware financier told me, “and the bankers blind them with science – saying, ‘Well, you could try that, but we wouldn’t be responsible for the consequences’ – so, nothing happens.”

The new entitled live in a mirror-lined bubble. Also a legally protected one. I was told of a hedge-fund boss so vile that investors withdrew their money but did not sue, because other hedge funds would then refuse to do business with them. On top of that, they are protected in Britain by libel laws and a tax system that, as John Lanchester points out, not only shields our own entitled from scrutiny but also encourages equally entitled foreigners to come here.

“You might as well say, ‘Bond villains, come and live here,’ ” he says. “Our libel laws don’t help. There are a lot of zillionaires about whom we are going to read the truth uncensored only when they are dead. It’s an astonishing situation, when we have such a proliferation of incredibly rich criminals.”

If that is the tragedy, the comedy is almost as alarming. Even the Financial Times last month was stunned to discover that bankers have been invited into schools to teach our children about money. The Royal Bank of Scotland, our most thoroughly disgraced financial institution, was, of course, represented. I can think of many people I could ask for advice about money. None of them is a banker.

Or there is the way the incontinent vanity of the newly entitled spills over into insults directed at their closest political allies. Towards the end of last year, Kevin Maguire reported in the New Statesman that members of the Bullingdon – the clownish club for the cream of Oxford society (the rich and thick) of which Cameron, Osborne and Boris Johnson were once members – had taken to burning £50 notes in front of beggars.

Most comical, but also most sad, are the attempts by the entitled to fit in with and compromise with the ordinary lives of others. In a remarkable piece for the Sunday Times Style magazine published in December, Kate Spicer interviewed members of the entitled generation that will reap the rewards of the wave of criminality that engulfed our financial system.

Goldman Sachs, Spicer reported, runs a course for partners on “how not to f*** up your kids” which encourages them to take the bewildered brats to the supermarket occasionally. (A friend of mine whom Goldman Sachs attempted to recruit in the 1990s was struck by the way, late at night, there were cars waiting to take the employees home, so that they need never see any street life.)

Unfortunately, the lesson “be nice, be normal” often fails to sink it. Spicer wrote of how Nell, the twentysomething daughter of the strikingly unpleasant former boss of Barclays Bob Diamond, defended her dad on Twitter by suggesting that Osborne and Ed Miliband should “go ahead and #hmd” – “hold my dick”.

Spicer also quoted Alexa, aged 17, who thought it “quite funny – people have no understanding, interest or involvement in something and then suddenly get all het up about it. I went on a drama course. I was one of very few private-school kids. This guy said, ‘Your dad f***** up the country,’ but he had a complete lack of understanding of the situation.”

Sorry, Alexa, but that guy was spot on.

The kids are worried about discrimination. Bankers’ brats now account for between 30 and 50 per cent of the intake of private schools, but they run into trouble when they have to talk to egalitarian-minded university interviewers and tell them that Mummy and Daddy paid for their gap-year adventures.

What is striking, reading Spicer’s interviews and copious other evidence, is that the narcissism Jean Twenge identified as having blossomed in the 1980s is still rampant. The children of the bankers do think they are better than the rest of us and that making money is what matters most.

“You commonly hear from companies now,” Twenge says, “that this generation really have new social goals, helping people and so on. Unfortunately, that is not backed up by the evidence from what the young people actually say. There is no resurgence in the idea that we really want companies to be responsible.”

One final feature of the Age of Entitlement must be mentioned. It is the viciously reductionist mindset behind what now happens in finance. In part, this derives from machines. Computers are like alcohol to Homer Simpson: the cause of and solution to all of life’s problems. Computers made the bubble possible and the 2007 crash (and the next one) inevitable. They created high-speed, mechanised trading and enabled the application of mathematics to the markets – bad maths, as it happened, given that the primary equations were derived from physics that dees not apply to human affairs.

But more important is the reductionism that was implicit in neoliberalism as it became in the hands of the entitled. Money, in this view, is the measure of all things. An angry and very serious financial player told me how he had spent 20 years helping build a company; then the private-equity people moved in and told him he wouldn’t get a penny because he had put no money in. “They were saying all you need to make money is money – you can forget about the decades of work that went in before they even joined the party. They were arrogant beyond belief.”

This reductionism is perhaps the most dangerous assumption of the Age of Entitlement. Money, as Bob Dylan sagely observed, doesn’t talk, it swears, and for this swearing to be effective it must be embodied in an ethical, moral, political and social realm that cannot, in and of itself, be reduced to money. That realm is being eroded rapidly, not only by the entitled, but also by the craven worship of cash that now suffuses the culture. It is this that is successfully disseminating the depraved idea that merely to be rich is to be entitled. To sample the idea, go to the Rich Kids of Instagram tumblr, a website of images of the young wealthy swigging from magnums of champagne and posing next to private jets. The site’s tagline is, “They have more money than you and this is what they do.”

Taxation cannot change this, as the French are learning. The next crash might and several hundred – or several thousand – bankers in prison would help, as would the demolition of One Hyde Park to give us all a view of the green sward. What would definitely change the climate of entitlement would be a dismantling of its psychological basis, the mindset that has created a super-rich class with no allegiance, obligation or connection to wider society. The ears of the entitled need to be unstopped so that we can whisper to them, ever so gently, “If you’re rich be grateful and, here’s another great idea, earn it.”

This article first appeared in the 04 February 2013 issue of the New Statesman, The Intervention Trap

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How memories of the Battle of Verdun inspired a new era of Franco-German co-operation

The fight at Verdun in 1916 set a precedent for peace that lives on at the heart of Europe.

How do you clear up after a battle that took the lives of more than a quarter of a million men? In Britain we don’t have much experience of this kind. There hasn’t been a major war on British soil since the 1640s, and that wasn’t a shock-and-awe inferno of industrial firepower (although it is estimated that a greater percentage of Britain’s population died in the civil wars than in the Great War).

The French, however, fought the Great War on home soil. The ten-month Battle of Verdun in 1916 stands out as the longest of the conflict, and one of the fiercest, with fighting concentrated in a small area of roughly 25 square miles. The terrain was pounded by heavy artillery and poisoned with gas; nine villages were reduced to rubble and never rebuilt – remaining on the map to this day as villages détruits.

In November 1918, soon after the Armis­tice, Monseigneur Charles Ginisty, the bishop of Verdun, was appalled to see mounds of unburied corpses and myriad bones still scattered across the blasted landscape – what was left of men who had been literally blown to bits by shellfire. “Should we abandon their sacred remains to this desert,” he asked in anguish, “littered with desiccated corpses . . . under a shroud of thorns and weeds, of forgetting and ingratitude?”

Ginisty became the driving force behind the ossuary at Douaumont, at what had been the very centre of the battlefield. This he intended to be both “a cathedral of the dead and a basilica of victory”. It is a strange but compelling place: a 450-foot-long vault, transfixed in the middle by a lantern tower, and styled in an idiosyncratic mix of Romanesque and art deco. To some visitors the tower looks like a medieval knight stabbing his broadsword into the ground; others are reminded of an artillery shell, or even a space rocket. Creepiest of all is what one glimpses through the little windows cut into the basement – piles of bones, harvested from the field of battle.

Sloping away downhill from the ossuary is the Nécropole Nationale, where the bodies of some 15,000 French soldiers are buried – mostly named, though some graves are starkly labelled inconnu (“unknown”). Each tomb is dignified with the statement “Mort pour la France” (no British war grave bears a comparable inscription). The nine villages détruits were given the same accolade.

For the French, unlike the British, 1914-18 was a war to defend and cleanse the homeland. By the end of 1914 the Germans had imposed a brutal regime of occupation across ten departments of north-eastern France. Verdun became the most sacred place in this struggle for national liberation, the only great battle that France waged alone. About three-quarters of its army on the Western Front served there during 1916, bringing Verdun home to most French families. Slogans from the time such as On les aura (“We’ll get ’em”) and Ils ne passeront pas (“They shall not pass”) entered French mythology, language and even song.

Little wonder that when the ossuary was inaugurated in 1932, the new French president, Albert Lebrun, declared: “Here is the cemetery of France.” A special plot at the head of the cemetery was set aside for Marshal Philippe Pétain, commander at the height of the battle in 1916 and renowned as “the Saviour of Verdun”.

The ossuary must surely contain German bones. How could one have nationally segregated that charnel house in the clean-up after 1918? Yet officially the ossuary was presented as purely French: a national, even nationalist, shrine to the sacrifice made by France. Interestingly, it was the soldiers who had fought there who often proved more internationally minded. During the 1920s many French veterans adopted the slogan Plus jamais (“Never again”) in their campaign to make 1914-18 la der des ders – soldier slang for “the last ever war”. And they were echoed across the border by German veterans, especially those on the left, proclaiming, “Nie wieder.”

For the 20th anniversary in 1936, 20,000 veterans, including Germans and Italians, assembled at Douaumont. Each took up his position by a grave and together they swore a solemn oath to keep the peace. There were no military parades, no singing of the Marseillaise. It was an immensely moving occasion but, in its own way, also political theatre: the German delegation attended by permission of the Führer to show off his peace-loving credentials.

Memory was transformed anew by the Second World War. In 1914-18 the French army had held firm for four years; in 1940 it collapsed in four weeks. Verdun itself fell in a day with hardly a shot being fired. France, shocked and humiliated, signed an armistice in June 1940 and Pétain, now 84, was recalled to serve as the country’s political leader. Whatever his original intentions, he ended up an accomplice of the Nazis: reactionary, increasingly fascist-minded, and complicit in the deportation of the Jews.

***

The man who came to embody French resistance in the Second World War was Charles de Gaulle. In 1916, as a young captain at Verdun, he had been wounded and captured. In the 1920s he was known as a protégé of the Marshal but in 1940 the two men diverged fundamentally on the question of collaboration or resistance.

De Gaulle came out the clear winner: by 1945 he was president of France, while Pétain was convicted for treason. The Marshal lived out his days on the Île d’Yeu, a rocky island off the west coast of France, where he was buried in 1951. The plot awaiting him in the cemetery at Douaumont became the grave of a general called Ernest Anselin, whose body remains there to this day. Yet Pétain sympathisers still agitate for the Marshal to be laid to rest in the place where, they insist, he belongs.

After 1945 it was hard for French leaders to speak of Verdun and Pétain in the same breath, although de Gaulle eventually managed to do so during the 50th anniversary in 1966. By then, however, la Grande Guerre had begun to assume a new perspective in both France and Germany. The age-old enemies were moving on from their cycle of tit-for-tat wars, stretching back from 1939, 1914 and 1870 to the days of Napoleon and Louis XIV.

In January 1963 de Gaulle – who had spent half the Great War in German POW camps – and Chancellor Konrad Adenauer, who first visited Paris to see the German delegation just before it signed the Treaty of Versailles, put their names to a very different treaty at the Élysée Palace. This bound the two countries in an enduring nexus of co-operation, from regular summits between the leaders down to town-twinning and youth exchanges. The aim was to free the next generation from the vice of nationalism.

France and West Germany were also founder members of the European Community – predicated, one might say, on the principle “If you can’t beat them, join them”. For these two countries (and for their Benelux neighbours, caught in the jaws of the Franco-German antagonism), European integration has always had a much more beneficent meaning than it does for Britain, geographically and emotionally detached from continental Europe and much less scarred by the two world wars.

It was inevitable that eventually Verdun itself would be enfolded into the new Euro-narrative. On 22 September 1984 President François Mitterrand and Chancellor Helmut Kohl stood in the pouring rain in front of the ossuary for a joint commemoration. In 1940 Sergeant Mitterrand had been wounded near Verdun, and Kohl’s father had served there in 1916, so personal memories sharpened the sense of political occasion. During the two national anthems, Mitterrand, apparently on impulse, grasped Kohl’s hand in what has become one of the most celebrated images of Franco-German reconciliation.

“If we’d had ceremonies like this before the Second World War,” murmured one French veteran, “we might have avoided it.”

Institutional memory has also moved on. In 1967 a museum dedicated to the story of the battle was opened near the obliterated village of Fleury. It was essentially a veterans’ museum, conceived by elderly Frenchmen to convey what they had endured in 1916 to a generation that had known neither of the world wars. For the centenary in 2016 the Fleury museum has undergone a makeover, updated with new displays and interactive technology and also reconceived as a museum of peace, drawing in the Germans as well as the French.

With time, too, some of the scars of battle have faded from the landscape. Trees now cover this once-ravaged wasteland; the graveyards are gardens of memory; the EU flag flies with the French and German tricolours over the battered fort at Douaumont. Yet bodies are still being dug up – 26 of them just three years ago at Fleury. And even when the sun shines here it is hard to shake off the ghosts.

Exploring the battlefield while making two programmes about Verdun for Radio 4, the producer Mark Burman and I visited l’Abri des Pèlerins (“the pilgrims’ shelter”) near the village détruit of Douaumont. This was established in the 1920s to feed the builders of the ossuary, but it has continued as the only eating place at the centre of the battlefield. Its proprietor, Sylvaine Vaudron,
is a bustling, no-nonsense businesswoman, but she also evinces a profound sense of obligation to the past, speaking repeatedly of nos poilus, “our soldiers”, as if they were still a living presence. “You realise,” she said sternly at one point, “there are 20,000 of them under our feet.” Not the sort of conversation about the Great War that one could have anywhere in Britain.

David Reynolds is the author of “The Long Shadow: the Great War and the 20th Century” (Simon & Schuster). His series “Verdun: the Sacred Wound” will go out on BBC Radio 4 on 17 and 24 February (11am)

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle