Tag Archives: economic democracy

Blue Labour, Relationships and Free Movement

The Brandenburger Tor, Berlin with makeshift Mediterranean refugee memorial
The Brandenburger Tor, Berlin with makeshift Mediterranean refugee memorial

I attended a fascinating meeting last weekend arranged by the East Midlands ‘Blue Labour’* group on the theme of ‘How Do We Champion the Cause of the Working Class?’ There was a panel of academics, journalists and local Labour politicians. I am interested in Blue Labour’s approach because they are the only group within Labour that seems to have a coherent view of how to remodel the economy away from the dominance of financialised capitalism without returning to widespread nationalisation. The essence of this view is that goods and service provision should be based less on anonymous (usually monetary) transactions and more on the basis of relationships. This implies an expansion of co-operative, mutual and stakeholder businesses, and more regional and community input into local, social and health services. I have myself written about why this is important. Continue reading Blue Labour, Relationships and Free Movement

Smaller, Greener Banking: A Response to FOE Scotland’s Report

Response to Smaller, Greener Banking: Banking for Sustainability in a New Scotland: A Discussion Paper by Ray Perman and Friends of the Earth Scotland

Smaller Greener Banking - FOE Scotland
Smaller Greener Banking – FOE Scotland

The authors of this report claim that ‘there has been a failure of government policy to decide the role banks should play, and therefore what sort of institutions they should be.’ and that ‘we have ended up with a banking system dominated by a small number of giant banks…’ These institutions are only able to survive because they are ‘too big to fail’, yet they offer poor customer choice and service, have acted illegally in rigging markets and indulge in ‘socially useless’ activities.

So far, the main government response in the UK and Scotland has been to create new banks such as the UK Business Bank, Scottish Investment Bank and the Green Investment Bank, rather than to reform the existing ones. Continue reading Smaller, Greener Banking: A Response to FOE Scotland’s Report

Modern Thinking: Atomism and Communication

‘Modern Thinking: Atomism and Communication’ – Although written four years ago for an essay competition, I still think this piece encapsulates as well as anything my approach to economics, politics and social institutions.

Atomised and helpless
Atomised and helpless
Bertrand Russell, the great British mathematician and philosopher, believed that to be ‘modern-minded’ was to make the error of thinking with the fashion rather than ahead of it. When he wrote about this in 1937 he believed that with God’s role as arbiter of truth and beauty having been usurped, ‘detachment and objectivity, both in thought and feeling’ had also been thrown overboard. Russell, as a rationalist and a non-believer, believed it was ‘possible and important’ to preserve them without recourse to a Creator. To do so, he believed, required ‘solitude’ and ‘a certain degree of isolation both in space and time’. While he may have been right when it comes to studying the physical world and creating great art, his advice is less helpful when it comes to human nature and society. Even if we wanted to, as human beings ourselves, we cannot stand apart from other humans and society as a whole. Unfortunately when this recognition came it was in part responsible for a critical wrong turning in our approach to social phenomena. This wrong turning came about because modern thinking, having dispensed with God guiding from above, had already turned to look for causes and drivers of events at the level below that at which they are observed. The properties of substances had to be derived from the properties of their molecules; the properties of the forces that change the world about us from day to day are derived from the waves and particles into which they can be decomposed. Continue reading Modern Thinking: Atomism and Communication

Unemployment – Morality, Money and Increasing Returns

Returns to Scale in Frankfurt's business district
Returns to Scale in Frankfurt’s business district ©DWP

The causes of unemployment make it a moral issue. Radical solutions are required.

In an earlier post I noted some features of unemployment from a UK perspective. The main thrust was that a fairly constant proportion of the population in employment (around 72% of those of working-age) hides a serious decline in the availability of adequate work, due mainly to the increase in women in the workforce and the fall in the ratio of full-time to part-time work. In a paper I wrote and referenced here on welfare I hinted at a moral dimension to the issue of unemployment in a capitalist economy (by which I simply mean an economy where physical means of production tend to belong in more or less concentrated hands).

I have now written a rather more formal paper (pdf 198kb) which I presented to the Post-Keynesian Study Group annual workshop in May this year in which I expanded on why we have a persistent problem with unemployment, and why this has a significant moral implications in our attitude to the unemployed. In this light of this I review the inadequacy of current policy and look at some of the more radical solutions proffered. The following is a non-technical summary of the paper. Continue reading Unemployment – Morality, Money and Increasing Returns

Equality of Voice and ‘Devo-localism’

Dependent Smurf
Don’t I get a say?

 

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

 [Politicians] see themselves as propping up something which is tottering rather than letting citizens build anew something that is soundly based. Charles Moore, Daily Telegraph 13/7/2012

 

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’

Leveson, the Press and Labour

This post was published on LabourList on 16th August 2012, under the title ‘Labour must free 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

Capitalism Meets its Match?

Still capture from Cohen video.
The late Jerry Cohen.

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.

The talk was evidently broadcast on the UK Channel 4 some time in the 1980s. You can find the video here at ‘Sociological Images.

What Equality? – Equality of Voice

‘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

Blue Labour and Immigration

This article was published on LabourList on 2nd August 2011.

Immigration, by being freighted with so many unsaid and often unconsidered subtexts, is a toxic subject. As both Marc Stears and Anthony Painter have suggested on LabourList recently, it certainly seems to have poisoned the ‘Blue Labour’ project, possibly fatally. Continue reading Blue Labour and Immigration

Blue Labour Political Economy: Equality of Voice

This is an essay on the approach to economics suggested by Maurice Glasman’s essay ‘Labour as a Radical Tradition’. Glasman’s essay forms part of the ebook ‘The Labour Tradition and the Politics of Paradox’.

I’m not particularly keen on the ‘Blue Labour’ moniker, but the ideas behind Maurice Glasman’s approach bear serious examination. Interestingly, his approach bears some comparison with that recently espoused by Amartya Sen in his book ‘The Idea of Justice’. This is that it is difficult to win political arguments with abstract ideas, and that practical and localised amelioration of well-recognised wrongs is the best way forward. Glasman (in Labour as a Radical Tradition) looks back to the early days of Labour when the movement of which it was part was defined by relationships and ‘practices that strengthen an ethical life’. These practices included reciprocity, mutuality and solidarity, and they led to actions such as the formation of mutual societies, co-operatives and trades unions. These may not and need not have had an explicit or even coherent philosophical underpinning.

According to Glasman, however, ‘The founders of the labour movement understood the logic of capitalism…and the threat this posed to their lives, livelihoods and environment.’ Maybe they did, but this is somewhat in contradiction of Glasman’s narrative, since the ‘logic of capitalism’ is itself an abstract idea. And it’s not at all clear that we understand this ‘logic’ today, or if we do, whether we know how to refute its conclusions. Continue reading Blue Labour Political Economy: Equality of Voice