[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.
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. Continue reading The Real Wealth of Fizz→
This article is on 3 pages, and you can go to the next page you want by clicking on the relevant number at the bottom of each page.
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
That’s where the real constitutional debate needs to be – around a radical constitutional option that puts Scotland back into the hands of its people: devo-local, if you like. Trevor Davies, The Scotsman 10/5/2012
Power wielded from the centre is slow to react, inflexible and discriminates poorly. Yet political power at all levels has been steadily eroded as a consequence of the economic demands of global corporations and the economic strain on central government to provide for these corporations and mop up the damage they cause. No redistribution of political power from centre to periphery can be sustainable without addressing the centralisation of economic power. The willingness to address the latter is surely what will separate the left ‘devo-localist’ from the right. Continue reading Equality of Voice and ‘Devo-localism’→
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. Continue reading Leveson Heat Rises for the Press→
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. Continue reading Leveson, the Press and Labour→
The riots that engulfed London and other cities in England began one year ago today. Just to hark back to my piece ‘Riots: Looking Deeper’ on this topic last year, written one week after they started. I think it’s fair to say that it was a reasonable analysis. In particular the Independent Panel set up to investigate their causes stated
Clearly the importance of those attributes becomes even more pronouncedwhen young people are faced with growing up in a time of austerity, a struggling job market and pervasive messaging telling them that criminality provides a fast track to achieving status among their peers. For example, while we know that most convicted rioters were not gang members, we also know that gangs operate in a large number of areas where the riots occurred. Some young people are exposed to imagery and attitudes associated with gang culture from an early age, which glamorise a life of criminality outside the system and which eschews any empathy for the victims of crime.
An article by Richard Wilkinson and Kate Pickett (of ‘The Spirit Level’ fame) on today’s Guardian CiF specifically blames inequality. You might care to look here at my general response to that thesis.
…with local authority cuts set to continue the environment will become more challenging than ever before – if we are to avoid a repeat of 2011 councils need to have the funding to invest in key intervention programmes, community development and economic growth; all things that could help to prevent future riots. As things currently stand, government policy could threaten this.
Whichever side of the argument you might be on, it’s worth looking at a very cogent and entertaining video talk by the late Professor G.A Cohen on some of the problems of ‘actually existing capitalism’. I found it while following up a reading of his Tanner Lecture, ‘Incentives, Inequality, and Community’, given at Stanford University in 1990-91, which contains a powerful argument against incentive justifications for income/wealth inequality.
Long piece today by the Guardian’s economics leader writer, Aditya Chakrabortty, on the cost of the banking crisis, bank misconduct and what should be done about it. I agree wholeheartedly with the thrust of this piece, and indeed said much the same two and half years ago in my piece on the Guardian Cif site. Aditya’s piece concludes that
any investigation needs to understand how to reform the finance sector so that crises like these don’t recur; and so that banks actually work in the public interest rather than hire propagandists to pretend they do. Because in the end, financial reform is not about technicalities, but about politics: deciding what role banks should play in an economy, and what kind of economy we want.
However, he says also that:
According to the IMF, the British stuck £1.2 trillion behind the finance sector. Read that again: well over a trillion pounds in bailouts, and loans and state guarantees on bankers’ trading. In just a few months, and with barely any public debate, every household subbed £46,774 to the City. A sliver of that money eventually went unused; as for the remaining hundreds of billions, we have no idea just how much we’ll get back – or when.
‘We need to be clear how equality, and what kind of equality (including of what), services our notion of the good society.’
To give David Miliband some credit, he is asking the right question. It’s not clear from his New Statesman sally whether he has the right answer.
As characterised by the older brother, ‘Reassurance Labour’ believes that the state is the primary bulwark against the inequities and inefficiencies thrown up by a globalised market economy. It seems that David M. believes that empowered regions and communities should be cast in this role.
Now in general terms, I think David has a point. But there are major gaps in his thinking. As he clearly acknowledges, the state (and frequently bodies stretching their remit even wider – the EU and beyond) must set the framework for individual rights and responsibilities. This is necessary to ensure that the relationship between devolved structures is one of co-operation and constructive competition rather than the beggar-my-neighbour variety.
But there are other crucial relationships about which David says nothing. These are those between the power of business on the one side and communities and individuals on the other. If the state has been unable to resist the power of big business and finance to capture huge rewards while making the public responsible for clearing up its messes, there is no hope for smaller regions and communities. As it stands, Miliband senior’s recipe is one of surrender to the interests of money-profit. Under these conditions ‘growth’ means little more than bigger bonuses and more efficient tax-avoidance. Continue reading What Equality? – Equality of Voice→
I’ve read with interest the recent Labour List posts of Owen Jones and Emma Burnell. I think on the politics Emma is right, but on the economics Owen is right to call for a fresh plan of action.
Politics these days is a performance, and it’s increasingly a self-interested one where concern for the greater good is either absent or on the back burner. How we tackle that is an important issue in itself, but let’s just assume for now that the general welfare of the UK population is really at issue.
Ed Miliband is a human being, with all the faults and idiosyncrasies that entails. When they see him through the lens of the media (as most only do) some people will instinctively find him sympathetic, others will not. On what grounds, who knows? In the end, whatever this effect, it only has to allow Labour to be voted for ahead of the parties of his rivals, Cameron and Clegg. Continue reading Economics and Perception→