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The new Levellers

Can the student protesters of the 2010s surpass those of the 1960s, or will they be quelled by the r

At the start of John le Carré's novel Our Kind of Traitor, published in September this year, the 30-year-old hero, educated at a state school and now lecturing in Oxford, suffers a crisis: "Would Orwell have believed it possible that the same overfed voices which had haunted him in the 1930s, the same crippling incompetence, addiction to foreign wars and assumptions of entitlement, were happily in place in 2009? Receiving no response from the blank student faces staring up at him, he had supplied it for himself: no. Orwell would emphatically not have believed it. Or if he had, he would have taken to the streets. He would have smashed some serious glass."

It can't be often that an autumn novel so catches a national mood that its fictional projection becomes reality even before it has achieved its Christmas sales. Student faces are blank no longer and the image of a young man, hooded, aiming a balletic kick into the serious glass front of the lobby of the Tory party's headquarters in Millbank on 10 November, was on all the front pages the next day.

Whatever the media might prefer, most voters did not see the students and their supporters as either troublemakers or privileged beneficiaries demanding special treatment from the taxpayer.

The students seem to be learning fast, too. On the day of the third big demonstration, on 30 November, a "19-year-old student" told the BBC: "Smashing up windows was necessary in the beginning to get the demonstrations on the front pages, but now any violence would be counterproductive."

Across Britain there has been a swell of student activism, occupations and demands, with a focus on higher education but reaching out for public support against cuts. Only once before has there been anything like this level of student action - at the end of the Sixties, starting in 1968. Will this decade succeed where the Sixties failed?

The Sixties changed our society and our culture. But here in Britain, unlike the rest of western Europe, the student rebellion of the left was politically marginalised; it arrived late, and was narrow by comparison with its counterparts on the Continent. The true political impact of the Sixties in Britain took another course. In October 1968, a then unknown Margaret Thatcher gave a speech at a fringe meeting of the Conservative party conference. She caught the anti-statism of the new zeitgeist, and it was the political right that eventually captured the legacy of Sixties anti-authoritarianism.

Neoliberalism and the free market were the main beneficiaries of the movement against state power and paternalism. Ironically, it is Thatcher's successors against whom the students are now mobilising.

David Cameron told this year's Conservative conference that the general election meant that "statism lost . . . society won . . . it's a revolution . . . We are the radicals now, breaking apart the old system with a massive transfer for power, from the state to citizens, politicians to people, government to society." He was taking the words of the student activists of the Sixties and stuffing them into the mouths of today's.

Understandably, the students are refusing to swallow. It is not just the huge hike in fees they are being asked to absorb, but the simultaneous withdrawal of four-fifths of all direct grants to universities. As the government will back the loans that are supposed to replace this, there will be no immediate difference to the deficit. The coalition is using the fiscal emergency as an excuse to abolish support for all humanities research and scholarship. Apparently, students will be expected to pay for this (at a time when, as the blogger and businessman Chris Goodall has calculated, they get at most £4,500 worth of teaching a year). No other advanced country has abandoned public support for the heart of its intellectual civilisation in this way. The very idea of a university is being guillotined.

While student resistance to this fate combines self-interest with a fight for the country's future as a whole, it is also being driven by a new generational divide. Once more, though this time thanks to "digitalisation", protest is underpinned by an epochal shift.

The Sixties announced the start of the great cycle of capitalist expansion. It was the opposite of now: jobs were plentiful, rent was cheap. We had our own music; there were miniskirts and Mini cars. It was "Americanisation", but we, too, influenced the States as London swung. Accompanying this heady sense of emancipation was the belief that our parents were from a different planet. They had grown up without TV, sex before marriage, drugs and rock'n'roll; and often without university education, as we were part of the first expansion of mass higher education. It was a generation gulf, not a gap. Ridiculous rules, hypocrisy and authoritarian teaching methods became a target for students, as did secrecy. (Students demanded that universities "open the files", and a number of occupations broke into the administration offices to do just that.)

While the student movement was strongly international, in each country it had its own national characteristics. The revolution in France was against the culture of "Oui, Papa", the formality of which was much stiffer than here. In Germany, which had much the deepest and best Sixties, the "anti-authoritarian movement" involved a generation that had to deal with the fact that their parents had been Nazis.

Then there was Vietnam. The Sixties were a time of violence as well as joy, and Americans expressed both. Hundreds of thousands of their troops were occupying another country, thousands of Vietnamese were dying each month, and torture by the Americans was routine: this was the deadly backdrop to the arrival of drugs, which then fed its stream of victims into the maelstrom.

This atmosphere of violence fed into the students' responses - extremist terrorist groups such as the Red Army Faction in Germany, the Red Brigades in Italy and, in Britain, the Angry Brigade, mistook fantasy for strategy. Pauline Melville's Dionysian novel Eating Air, which draws directly on events of the period, the pitch-perfect archaeology of Hari Kunzru's My Revolutions and le Carré's Absolute Friends all catch the earnest and well-meaning initial impulse of the '68 movement - hippie, ultra-tolerant and impatient. And all three recall how the sectarians, the authorities and their agents were waiting in the wings.

Class conscious

Today it feels to me, as it did 40 years ago, that the protests connect to something larger. Perhaps they are now heralding the end of a long consumer boom, as opposed to its beginning.

I am not saying today's students are a repetition or mere followers. On the contrary, all that today's students need to learn from the Sixties is how not to become marginalised and defeated.

The differences between now and then may make this possible. We are a much more equal and open society. But the new generation faces debt and insecurity, and economic injustice in Britain has increased astronomically. After the crash of 2008 exposed bankers as robbers who skim off unearned capital, we discovered that we have to pay for their disaster. Belief in the fun­damental legitimacy of the system has been shaken, in a way that did not happen under Harold Wilson.

This means that, in contrast to the late Sixties, when student protest was ridiculed and pilloried, today it can make a credible claim to voice the anger and concerns of a wider public. And it is significant that the demonstrations have been joined by children protesting about the abolition of the Education Maintenance Assistance (EMA), which pays those from hard-up families to stay in school or further education.

Another important difference between then and now is that the student militancy of 1968 in Britain was largely confined to universities and art schools. There was a dramatic confrontation at Hornsey College of Art in north London in May 1968. But very few of what were then called "polytechnics" were involved. University students were mostly middle-class people on three-year courses on campuses away from home.

olytechnic students were mostly local and working-class. In 2010, the social composition of what were polytechnics and are now universities remains local and working-class, but many student occupations are taking place in them. Today "students" connotes a much broader, less privileged sector.

The web reinforces this cross-class generational relationship. Young people today communicate with and relate to each other in ways which mean that their lives, decisions and networks are much more spontaneous and flexible. Many who would otherwise not be involved will follow and, in a certain way, experience the new levels of activism. They may be stirred from passivity. Their capacity to learn what is really happening is much less mediated by the mainstream media, whose regular readership and viewing has collapsed among the under-25s.

The web reshapes, but is not a substitute for, power and organisation. Life remains, happily, a face-to-face affair. Nonetheless, the kind of society the new generation looks forward to will be unlike any that has gone before. It is easy to exaggerate this and then puncture the inflated projection. It's a generation gap, not a gulf as humanly painful as that experienced by their Sixties predecessors. Yet, in the short term, the new technology is sure to increase mobilisation sharply; and in the long term, the resources the internet provides may help this generation to succeed in its challenge to hierarchy with direct democracy, deliberation and openness - and to create a political culture that is not disabled by the routines of "representation" now largely expropriated by corporate influence.

The roles of race and gender are also different this time round. Back then, there weren't significant numbers of black and ethnic-minority students to make their participation an issue. But as I watched videos of the current protests, it struck me that there seem to be many more black pupils among the school protesters than among the university students.

The student occupations of the late Sixties preceded the feminist movement. The basic attitude to women was set by the Rolling Stones. Women were "chicks": attachments with closed mouths and short skirts. This was not seen as being imposed, however; individual women could insist on being treated as equals, and then they were. It was a culture of experimentation for everyone, of both sexes (and as with drugs, experiments can go badly wrong).

But the energy also fed into the feminist movement, which is the greatest political legacy of the Sixties. Today, after the heyday of that movement has passed, women's participation in the student movement, as in the economy and politics, is no longer in itself regarded as an "issue". However, the boys have yet to learn to desire equality as a mutual benefit. It is unspoken, but there is a casual "Of course you can be equal if you want to be" attitude, which somehow leaves open the possibility of benefiting from inequality, "if that's what they want". It is disappointing to me that this is still the culture among young men in the movement. Perhaps this time one of its effects will be to make feminism mainstream.

Tough choices all round

Besides feminism, the other great political legacy of the Sixties was the idea that protesting is a right. This belief clearly animates the student protests today. But the movement is still trying to establish what kinds of protest are acceptable: quiet, peaceful, non-violent demonstrations, or civil disobedience, or property damage? Violence against people seems to be wholly rejected, as shown by the spontaneous revulsion of the demonstrators against the protester who threw a fire extinguisher from the roof at Millbank tower - a welcome change.

The Sixties, too, started with the slogan "Love and peace". It wasn't serious and there seems a better understanding now of the need for no willed violence against people. Doubtless, provocateurs will try to undo this. But today's students are unlikely to go on to spawn bands of terrorists, not least because they have been preceded by a decade of fundamentalist terrorism. And everyone can see how that kind of "propaganda of the deed" simply feeds reaction and empowers the security state.

One of the reasons that the student movement in Britain in the Sixties, unlike those in France and Germany, was marginalised was the influence of the Labour Party, which was in office and played its role as pillar of the establishment. It was a smart move on Ed Miliband's part, therefore, to say that he had thought of going to talk to the students protesting outside parliament. He was never going to come out in support of the demonstrators, as his father, Ralph, did in 1968, but he must see that the country needs a politics built outside conventional party, parliamentary and careerist routines. Should he and his party colleagues fail to grasp this, one clear lesson from the Sixties is that, somehow or other, the Tories will.

In 1968, the occupations and protests in British universities were an attempt to catch up with Paris, Berlin and campuses across America; 2010 feels very different. Perhaps the principal contrast between this decade and the Sixties is the sense that, this time around, the students are ahead of the game.

In the general election campaign in May, the party that pitched most energetically for student votes against the two old party machines was the Liberal Democrats. The National Union of Students got the Lib Dem candidates to pledge in writing that they would, individually and jointly, oppose any extension of university tuition fees. The meaning of the gesture was clear: in any deals that might be forthcoming in the event of a hung parliament - which was the whole point of voting Lib Dem - they might compromise on other policies, but not on this.

In an editorial comment written after the Millbank riot, the Mail on Sunday declared:

Nowhere on earth can a young man or woman lead such a privileged life as that available in the colleges of our ancient universities. Surrounded by the glories of English architecture, tended by obsequious servants, feasted in shadowed, candlelit halls, taught face-to-face by the greatest minds of their generation, Oxbridge undergraduates are introduced at an early age to a way of life that most cannot begin to dream of.

Nobody in Britain has any justification for rioting. This is a free country with the rule of law and democratic government - rare possessions in a world of corrupt and authoritarian slums.

This neatly illustrates the difficulty for those who oppose the students. It is an absurdly idealised caricature of Oxbridge, where many may search for great minds but few are found. The 50,000 students who marched last month experience quite different educational conditions. The giveaway in the Mail's argument is the leap from its mouth-watering description of the good life enjoyed by a few to the claim that "nobody in Britain has any justification for rioting". What? Not even against the existence of such privilege?

Who's radical now?

Apparently not, because we have the rule of law and democratic government, unlike benighted lands elsewhere. But the failure of our democracy is symbolised by the Lib Dems' betrayal of their special pledge, while there seems to be no law for the bankers. Could it be that it is the Mail on Sunday which is still living in 1968?

Banners saying "F**k fees" play its game, however. They repel people, in a way that demands for higher education to be open to all who strive for it do not. So it is entirely possible that today's student protesters will be marginalised, like their predecessors in the Sixties.

Nevertheless, there are good reasons to suppose that this might not happen. First, the ghastly consequences of terrorism and indiscriminate violence against other human beings are widely understood. Second, thanks to the internet, the capacity of students to organise themselves, to network and to stay informed is by several magnitudes greater than it was four decades ago, creating the possibility of a politics that is open-minded, not fundamentalist. Third, the young are less repressed and healthier people. And fourth, what is on offer from the political system today seems exhausted, its institutions corrupted, its constitution a shambles and reinvention essential.

On the economy, should the coalition's approach succeed, who thinks it will deliver the "fairness" that the government insists is its lodestone? And if it fails? The Prime Minister boasts that he is leading a revolution and that he and his government are the radicals now. It is a claim he may come to regret.

Anthony Barnett was the first co-ordinator of Charter 88 and founder editor of openDemocracy. His most recent book, with Peter Carty, is "The Athenian Option: Radical Reform for the House of Lords" (Imprint Academic, £25). Thanks to Our Kingdom, UCL Occupation and Oxford Left Review

This article first appeared in the 13 December 2010 issue of the New Statesman, The radical Jesus

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.

***

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