Amol Rajan, whom I have had cause to praise previously, wrote last week about Coca-Cola’s self-serving ‘anti-obesity campaign’. While much of what he writes is refreshingly scathing, I would take issue with the following statement:
[Coke] is a massive corporation that exists to make huge profits. This is fine by me, because I like big corporations: they create wealth, tax revenues and jobs.
3Z9KAQSQT4NC Clearly the first part is mostly true. Mostly in the sense that a company also exists to expand the empires, wealth and reputations of its executives – which is generally also tied up with making ‘huge profits’. The problem I have is with the idea that big corporations necessarily ‘create wealth, tax revenues and jobs.’ Whether they create real wealth is often doubtful.
In the case of Coca-Cola what it mostly creates is sweet fizzy drinks and the additional pleasure that comes from drinking their drinks rather than those of any competing suppliers. If we wanted to monetise that real ‘wealth’ it would be in terms of the additional price we are willing to pay for Coca-Cola products over other similar drinks. Note that we have to pay that surplus freely – if we are forced to pay it because of local monopolies or persuaded by misleading advertising than it represents not a social gain but a loss. Read the rest of this entry »
We knew the press barons (and they are literally barons, in some cases – as we shall see) didn’t like the proposed arrangements for organising press regulation agreed last month between the three main political parties. This arrangement was in the form of a Royal Charter (an arcane form of legislation introduced not by the elected representatives of the people, but by the monarch’s Privy Council) which set up a ‘Recognition Body’ which was to certify a new press regulator as conforming to the requirements based on the recommendations in last year’s Leveson Report. These requirements were in particular that the regulator itself should be truly independent of both the press and political influence, that it should have strong powers to enforce sanctions – both financial and in terms of apologies and corrections, that the regulator should set up a low-cost arbitration arrangement to deal with complaints and that complainants need not necessarily be individuals or organisations directly affected. Read the rest of this entry »
As Kawan Patel suggested on LabourList a few days ago, New Labour was founded on the idea that while Margaret Thatcher might not have ‘saved the nation’ as her Conservative supporters claim, there were things she ‘got right’. I believe that this focus on the specifics of the Thatcherite legacy, such as privatisation and reductions in union power, is wrong. It is what was entirely responsible for New Labour’s failure to reverse inequality and for allowing a massive financial bubble to replace a sustainable industrial infrastructure in Britain. We must learn this lesson.
For a start, the image of 1970s Labour government in hapless thrall to left-wing union leaders leading their unwilling rank-and-file members to destroy the British economy is almost entirely a creation of the press and Conservative myth-makers. The root cause of the industrial unrest of the 1970s that culminated in the ‘Winter of Discontent’ of 1978-79 was consistent annual inflation in double digits. This was mainly as a consequence of massive hikes in the price of oil. Firms showed no restraint in allowing their prices to rise to maintain their profits; for workers to maintain their standards of living required credible threats to withdraw labour. In doing this they were, on average, successful – but no more than that. In relation to labour productivity, hourly wages were at exactly the same point in 1979 as they had been in 1972. Read the rest of this entry »
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The report of the Leveson inquiry into the Culture, Practice and Ethics of the Press is expected to be delivered next week. I am publishing here a fuller version of my article that was previously published on LabourList. I was interested to note a report on the BBC News this evening on the Danish Press Council, which operates on a statutory basis and in a way not dissimilar to my suggestions here.
Introduction – The Press: Free for Whom and Free from What?
Press regulation as self-regulation is no longer, if it ever was, acceptable. It has utterly failed to prevent harm, to deal with the consequences of harm, and most importantly, failed to give us the high quality information and varied interpretation of current events and processes for which a ‘free press’ is valued. There is strong evidence for this in observing some extraordinary misapprehension of facts about our society.
As reported by a Cabinet Office briefing in 2000, when questioned people estimated on average that 26% of the population belonged to an ethnic minority. The real figure then was 7.1%. They thought on average that 20% of the population were immigrants. The figure at that time was just 4%, although it has now increased following EU expansion. A recent YouGov survey conducted for the Fabian Society found that people systematically overestimate government spending on unemployment benefit and the police by a factor of eight, housing benefit and child benefit by a factor of three, and sickness and disability benefits and defence by a factor of two. Yet when it comes to those parts of public expenditure where direct experience is common, such as the NHS, education and state pensions, the average estimate is reasonably close to the reality. Whatever our preferences, if we aren’t getting accurate information we cannot collectively make good decisions on important matters. As Lord Judge, the Lord Chief Justice, has pointed out
‘[T]he liberty of the press…is the right of the community as a whole. It is…our right, the right of every citizen.’ Read the rest of this entry »
There’s a funny little Panglossian piece by Tory peer and former minister Michael Bates on ConservativeHome. If it’s any indication of the thinking going on among ministers at present, however, it’s deeply worrying. The ex-Paymaster General displays an extraordinary lack of understanding of basic economic accounting and logic.
His main idea is that despite the current GDP figures, ‘the economic recovery is underway’. Now, while it’s true that GDP is in many senses a flawed measure of annual additional national wealth since it ignores (and may count as positive) environmental and human costs, it is the best available measure of what’s really going on in the economy. Contrary to the Tory peer’s claim, use of this measure is not ‘a bit like judging the health of a private corporation by its turnover alone’. The calculation of GDP specifically cancels out all the in-between costs in exactly the same way as a business cancels out turnover and costs to arrive at a profit figure. As a result GDP measures only those payments that are made in exchange for ‘final goods and services’ that are actually used, whether by the purchases of ordinary citizens, in the provision of public services or the investment of companies. Read the rest of this entry »
Since my post Leveson, the Press and Labour there have been further developments. The Prince Harry photos episode was hardly edifying for the press or the Royal Family. That the Sun editor could claim that publishing these photos of a silly over-privileged young man was somehow ‘about the freedom of the press’ should re-inforce my main point. The primary freedoms most of the current press industry are ultimately interested in are the freedom to make money and the freedom to promote their owners’ interests.
That News International in particular are an organisation whose values are seriously removed from human concerns was re-inforced today by the publication of a seriously awful picture of Cheryl Cole. She had been photographed through a car windscreen bleeding from the nose after an accident. For all the photographer knew at the time this image was taken, this woman had a basal skull fracture and was minutes from death. The fact that she is well known for her celebrity career gives only public prurience rather than public interest to this photograph.
The tendency for the press to close ranks in denial at the overall damage done by a press with skewed ambitions was emphasised yesterday in the Independent editor Chris Blackhurst’s BBC Radio 4 interview on the ‘Section 13′ letter he has received from the Leveson Inquiry outlining the criticisms likely to be made. Read the rest of this entry »
The first instalment of Lord Leveson’s inquiry report into the Culture, Practice and Ethics of the Press is due in the autumn. It’s vital that Labour are ready to argue for a truly free press. We should be well aware that the political right and the press industry itself have major combined interests in adhering as closely to the status quo as possible. Although the issue of privacy was the final trigger for the inquiry, the most important failure of our press is to provide high quality information about current events and a true variety of interpretations of their causes. We need these if we are to make good collective decisions on important matters. The truth-distorting bile that issues from some outlets has had a measurable effect in false impressions left on the public. Read the rest of this entry »