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Bias and the BBC

The charge that the broadcasting corporation is left-wing has been repeated so often that it goes almost unchallenged. If anything, Mehdi Hasan argues, it is a bastion of conservatism.

For years, I have been puzzled about why arguments over whether the BBC is biased seem to feature only two points of view. The right argues that the BBC is biased in favour of leftists and liberals. In his 2007 Hugh Cudlipp Lecture, Paul Dacre, editor of the Daily Mail, proclaimed: "It is, in every corpuscle of its corporate body, against the values of conservatism . . . by and large BBC journalism starts from the premise of left-wing ideology." The other side responds by pointing to, in the words of Polly Toynbee, doyenne of the liberal left, "the BBC's perpetually self-critical striving for fairness and balance, unique in all the media . . . the only non-partisan voice". The idea that the corporation might be more sympathetic to a conservative view of the world than a liberal one never figures in the discussion.

But should it? In November 2005, a well-known BBC presenter delivered the 14th annual Hayek lecture at the Institute of Economic Affairs, in which he called for "a reorientation of British foreign policy away from Europe . . . a radical programme to liberalise the British economy; a radical reduction in tax and public spending as a share of the economy; a flat tax . . . the injection of choice and competition into the public sector on a scale not yet contemplated . . . excellence in schools with vouchers for all".

These are views, drawing on the libertarian philosophy of the long-dead Austrian free-marketeer Friedrich Hayek, that are to the right even of the modern Conservative Party. The BBC presenter was Andrew Neil, whose shadow looms large over the corporation's coverage of Westminster. Neil is on air roughly four hours a week, presenting Daily Politics, Straight Talk and This Week - where one of his co-hosts is the former Tory defence secretary Michael Portillo. Neil and Portillo often gang up, ideologically, on the soft Labour lefty Diane Abbott. Here is the legendary BBC "balance" in action.

But this is not about Neil, who has been on the Thatcherite right for decades now, first as editor of the Tory-supporting Sunday Times and now as chief executive of the Tory-supporting Spectator. This is about double standards, and about how the backgrounds of various prominent BBC employees have been curiously unexamined in the row over "bias".

Can you imagine, for example, the hysterical reaction on the right if the BBC's political editor had been unmasked as the former chair of Labour Students? He wasn't - but Nick Robinson was chair of the Young Conservatives, in the mid-1980s, at the height of Thatcherism. Can you imagine the shrieks from the Telegraph and the Mail if the BBC's editor of live programmes had been deputy chair of the Labour Party Young Socialists? He wasn't - but Robbie Gibb was deputy chair of the Federation of Conservative Students in the 1980s, before it was wound up by Norman Tebbit for being too right-wing. Can you imagine the howls from the Conservatives if the BBC's chief political correspondent had left the corporation to work for Ken Livingstone? He didn't - but Guto Harri did become communications director for Boris Johnson within months of resigning from the Beeb.

Much has been made in the right-wing press of the comments by the Telegraph's editor-at-large, Jeff Randall, on the BBC's "liberal" bias - "It's
a bit like walking into a Sunday meeting of the Flat Earth Society" - during his four-year stint as the corporation's first business editor. The bigger question is: what on earth was an outspoken free-marketeer doing as the supposedly neutral BBC business editor to begin with? So much for Auntie's "Marxist" attitudes towards business and enterprise.

How about foreign policy? The BBC is constantly accused of anti-Americanism, but three of its most recent correspondents in Washington - Gavin Esler, Matt Frei and Justin Webb - have all since written books documenting their great love and admiration for the United States. Esler even used the pages of Dacre's Daily Mail to eulogise Ronald Reagan after the latter's death, claiming that he "embodied the best of the American spirit". Can you imagine the reaction on the right to a former BBC Moscow correspondent delivering a similar encomium to Leonid Brezhnev in the pages of the Guardian?

On Iraq, right-wing voices such as the Tory MP Michael Gove have accused the BBC of pushing an anti-war agenda - yet empirical analysis has yielded the opposite conclusion. The non-partisan, Bonn-based research institute Media Tenor found that the BBC gave just 2 per cent of its Iraq coverage to anti-war voices. Another study by Cardiff University concluded that the BBC had "displayed the most pro-war agenda of any [British] broadcaster".

Then there is the claim from small-c conservatives such as Peter Hitchens and Melanie Phillips that they are ignored by the BBC. Is this the
same Hitchens who is a frequent guest on BBC1's Question Time (according to the screen and cinema database IMDB, he has appeared on the show every year since 2000, and twice in 2007)? And the same Phillips who is a regular panellist on BBC Radio 4's Moral Maze?

So where are the counter-accusations of right-wing bias from the left? The sad truth seems to be that this canard "the BBC is left-wing" has been repeated so often that it has been internalised even by liberals and leftists. How else to explain Andrew Marr's confession of the "innate liberal bias inside the BBC" simply because it is "a publicly funded urban organisation with an abnormally large proportion of younger people, of people in ethnic minorities and almost certainly of gay people, compared with the population at large"?

“The left always feel faintly embarrassed at attempting to promote their own political agenda," says Steven Barnett, professor of communications at Westminster University, "and since the 1980s have consistently failed to bang the drum about the issues on which they might equally be able to pillory the BBC - for example, human rights abuses and the failure to regulate corporate greed." Barnett believes that allegations of bias are a concerted attempt by the right to "discredit any journalism with which they disagree and to promote a political agenda which is more consistent with their own". Liberals such as Marr, he says, feel "slightly guilty about their own liberalism" - unlike those on the right, such as Randall, who feel no such guilt.

Barnett does not believe the BBC is biased "in any particular direction". And yet, from top to bottom, in structure and staffing, in history and ideology, it is a conservative organisation, committed to upholding Establishment values and protecting them from challenge. Take two institutions not normally associated with liberals or left-wingers: the church and the monarchy. Wouldn't a "culturally Marxist" (to use Dacre's phrase) institution have long ago abandoned Thought for the Day and Songs of Praise? In 2008, the BBC broadcast more than 600 hours of religious programming on television and radio, up year on year. And can anyone really disagree with Jeremy Paxman's accusation that the BBC "fawns" over the royal family, behaving more like a "courtier"? The corporation's coverage of the Queen's golden jubilee celebrations and the marriage of Charles and Camilla was stomach-churning both in its excess and in its deference.

The BBC's bias is thus an Establishment bias, a bias towards power and privilege, tradition and orthodoxy. The accusation that the BBC is left-wing and liberal is a calculated and cynical move by the right to cow the corporation into submission. "The right in America has waged a long and successful battle to brand the news as liberal, and the same is happening here [in relation to the BBC] with the aid of a predominantly right-wing press," says Barnett. "I fear they may have similar success in redefining the centre ground of politics to suit their own political agenda." With a Tory government on the verge of power, it is time for liberals and the left to fight back and force the BBC to acknowledge its real bias.

Mehdi Hasan is senior editor (politics) of the New Statesman. To read his NS blog, visit: www.newstatesman.com/blogs

The Edinburgh International Television Festival runs from 28 to 30 August

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 31 August 2009 issue of the New Statesman, The next 100 years

MILES COLE
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The new Brexit economics

George Osborne’s austerity plan – now abandoned by the Tories – was the most costly macroeconomic policy mistake since the 1930s.

George Osborne is no longer chancellor, sacked by the post-Brexit Prime Minister, Theresa May. Philip Hammond, the new Chancellor, has yet to announce detailed plans but he has indicated that the real economy rather than the deficit is his priority. The senior Conservatives Sajid Javid and Stephen Crabb have advocated substantial increases in public-sector infrastructure investment, noting how cheap it is for the government to borrow. The argument that Osborne and the Conservatives had been making since 2010 – that the priority for macroeconomic policy had to be to reduce the government’s budget deficit – seems to have been brushed aside.

Is there a good economic reason why Brexit in particular should require abandoning austerity economics? I would argue that the Tory obsession with the budget deficit has had very little to do with economics for the past four or five years. Instead, it has been a political ruse with two intentions: to help win elections and to reduce the size of the state. That Britain’s macroeconomic policy was dictated by politics rather than economics was a precursor for the Brexit vote. However, austerity had already begun to reach its political sell-by date, and Brexit marks its end.

To understand why austerity today is opposed by nearly all economists, and to grasp the partial nature of any Conservative rethink, it is important to know why it began and how it evolved. By 2010 the biggest recession since the Second World War had led to rapid increases in government budget deficits around the world. It is inevitable that deficits (the difference between government spending and tax receipts) increase in a recession, because taxes fall as incomes fall, but government spending rises further because benefit payments increase with rising unemployment. We experienced record deficits in 2010 simply because the recession was unusually severe.

In 2009 governments had raised spending and cut taxes in an effort to moderate the recession. This was done because the macroeconomic stabilisation tool of choice, nominal short-term interest rates, had become impotent once these rates hit their lower bound near zero. Keynes described the same situation in the 1930s as a liquidity trap, but most economists today use a more straightforward description: the problem of the zero lower bound (ZLB). Cutting rates below this lower bound might not stimulate demand because people could avoid them by holding cash. The textbook response to the problem is to use fiscal policy to stimulate the economy, which involves raising spending and cutting taxes. Most studies suggest that the recession would have been even worse without this expansionary fiscal policy in 2009.

Fiscal stimulus changed to fiscal contraction, more popularly known as austerity, in most of the major economies in 2010, but the reasons for this change varied from country to country. George Osborne used three different arguments to justify substantial spending cuts and tax increases before and after the coalition government was formed. The first was that unconventional monetary policy (quantitative easing, or QE) could replace the role of lower interest rates in stimulating the economy. As QE was completely untested, this was wishful thinking: the Bank of England was bound to act cautiously, because it had no idea what impact QE would have. The second was that a fiscal policy contraction would in fact expand the economy because it would inspire consumer and business confidence. This idea, disputed by most economists at the time, has now lost all credibility.

***

The third reason for trying to cut the deficit was that the financial markets would not buy government debt without it. At first, this rationale seemed to be confirmed by events as the eurozone crisis developed, and so it became the main justification for the policy. However, by 2012 it was becoming clear to many economists that the debt crisis in Ireland, Portugal and Spain was peculiar to the eurozone, and in particular to the failure of the European Central Bank (ECB) to act as a lender of last resort, buying government debt when the market failed to.

In September 2012 the ECB changed its policy and the eurozone crisis beyond Greece came to an end. This was the main reason why renewed problems in Greece last year did not lead to any contagion in the markets. Yet it is not something that the ECB will admit, because it places responsibility for the crisis at its door.

By 2012 two other things had also become clear to economists. First, governments outside the eurozone were having no problems selling their debt, as interest rates on this reached record lows. There was an obvious reason why this should be so: with central banks buying large quantities of government debt as a result of QE, there was absolutely no chance that governments would default. Nor have I ever seen any evidence that there was any likelihood of a UK debt funding crisis in 2010, beyond the irrelevant warnings of those “close to the markets”. Second, the austerity policy had done considerable harm. In macroeconomic terms the recovery from recession had been derailed. With the help of analysis from the Office for Budget Responsibility, I calculated that the GDP lost as a result of austerity implied an average cost for each UK household of at least £4,000.

Following these events, the number of academic economists who supported austerity became very small (they had always been a minority). How much of the UK deficit was cyclical or structural was irrelevant: at the ZLB, fiscal policy should stimulate, and the deficit should be dealt with once the recession was over.

Yet you would not know this from the public debate. Osborne continued to insist that deficit reduction be a priority, and his belief seemed to have become hard-wired into nearly all media discussion. So perverse was this for standard macroeconomics that I christened it “mediamacro”: the reduction of macroeconomics to the logic of household finance. Even parts of the Labour Party seemed to be succumbing to a mediamacro view, until the fiscal credibility rule introduced in March by the shadow chancellor, John McDonnell. (This included an explicit knockout from the deficit target if interest rates hit the ZLB, allowing fiscal policy to focus on recovering from recession.)

It is obvious why a focus on the deficit was politically attractive for Osborne. After 2010 the coalition government adopted the mantra that the deficit had been caused by the previous Labour government’s profligacy, even though it was almost entirely a consequence of the recession. The Tories were “clearing up the mess Labour left”, and so austerity could be blamed on their predecessors. Labour foolishly decided not to challenge this myth, and so it became what could be termed a “politicised truth”. It allowed the media to say that Osborne was more competent at running the economy than his predecessors. Much of the public, hearing only mediamacro, agreed.

An obsession with cutting the deficit was attractive to the Tories, as it helped them to appear competent. It also enabled them to achieve their ideological goal of shrinking the state. I have described this elsewhere as “deficit deceit”: using manufactured fear about the deficit to achieve otherwise unpopular reductions in public spending.

The UK recovery from the 2008/2009 recession was the weakest on record. Although employment showed strong growth from 2013, this may have owed much to an unprecedented decline in real wages and stagnant productivity growth. By the main metrics by which economists judge the success of an economy, the period of the coalition government looked very poor. Many economists tried to point this out during the 2015 election but they were largely ignored. When a survey of macroeconomists showed that most thought austerity had been harmful, the broadcast media found letters from business leaders supporting the Conservative position more newsworthy.

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In my view, mediamacro and its focus on the deficit played an important role in winning the Conservatives the 2015 general election. I believe Osborne thought so, too, and so he ­decided to try to repeat his success. Although the level of government debt was close to being stabilised, he decided to embark on a further period of fiscal consolidation so that he could achieve a budget surplus.

Osborne’s austerity plans after 2015 were different from what happened in 2010 for a number of reasons. First, while 2010 austerity also occurred in the US and the eurozone, 2015 austerity was largely a UK affair. Second, by 2015 the Bank of England had decided that interest rates could go lower than their current level if need be. We are therefore no longer at the ZLB and, in theory, the impact of fiscal consolidation on demand could be offset by reducing interest rates, as long as no adverse shocks hit the economy. The argument against fiscal consolidation was rather that it increased the vulnerability of the economy if a negative shock occurred. As we have seen, Brexit is just this kind of shock.

In this respect, abandoning Osborne’s surplus target makes sense. However, there were many other strong arguments against going for surplus. The strongest of these was the case for additional public-sector investment at a time when interest rates were extremely low. Osborne loved appearing in the media wearing a hard hat and talked the talk on investment, but in reality his fiscal plans involved a steadily decreasing share of public investment in GDP. Labour’s fiscal rules, like those of the coalition government, have targeted the deficit excluding public investment, precisely so that investment could increase when the circumstances were right. In 2015 the circumstances were as right as they can be. The Organisation for Economic Co-operation and Development, the International Monetary Fund and pretty well every economist agreed.

Brexit only reinforces this argument. Yet Brexit will also almost certainly worsen the deficit. This is why the recent acceptance by the Tories that public-sector investment should rise is significant. They may have ­decided that they have got all they could hope to achieve from deficit deceit, and that now is the time to focus on the real needs of the economy, given the short- and medium-term drag on growth caused by Brexit.

It is also worth noting that although the Conservatives have, in effect, disowned Osborne’s 2015 austerity, they still insist their 2010 policy was correct. This partial change of heart is little comfort to those of us who have been arguing against austerity for the past six years. In 2015 the Conservatives persuaded voters that electing Ed Miliband as prime minister and Ed Balls as chancellor was taking a big risk with the economy. What it would have meant, in fact, is that we would already be getting the public investment the Conservatives are now calling for, and we would have avoided both the uncertainty before the EU referendum and Brexit itself.

Many economists before the 2015 election said the same thing, but they made no impact on mediamacro. The number of economists who supported Osborne’s new fiscal charter was vanishingly small but it seemed to matter not one bit. This suggests that if a leading political party wants to ignore mainstream economics and academic economists in favour of simplistic ideas, it can get away with doing so.

As I wrote in March, the failure of debate made me very concerned about the outcome of the EU referendum. Economists were as united as they ever are that Brexit would involve significant economic costs, and the scale of these costs is probably greater than the average loss due to austerity, simply because they are repeated year after year. Yet our warnings were easily deflected with the slogan “Project Fear”, borrowed from the SNP’s nickname for the No campaign in the 2014 Scottish referendum.

It remains unclear whether economists’ warnings were ignored because they were never heard fully or because they were not trusted, but in either case economics as a profession needs to think seriously about what it can do to make itself more relevant. We do not want economics in the UK to change from being called the dismal science to becoming the “I told you so” science.

Some things will not change following the Brexit vote. Mediamacro will go on obsessing about the deficit, and the Conservatives will go on wanting to cut many parts of government expenditure so that they can cut taxes. But the signs are that deficit deceit, creating an imperative that budget deficits must be cut as a pretext for reducing the size of the state, has come to an end in the UK. It will go down in history as probably the most costly macroeconomic policy mistake since the 1930s, causing a great deal of misery to many people’s lives.

Simon Wren-Lewis is a professor of economic policy at the Blavatnik School of Government, University of Oxford. He blogs at: mainlymacro.blogspot.com

 Simon Wren-Lewis is is Professor of Economic Policy in the Blavatnik School of Government at Oxford University, and a fellow of Merton College. He blogs at mainlymacro.

This article first appeared in the 21 July 2016 issue of the New Statesman, The English Revolt