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
‘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.
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
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
Charles Moore is the official biographer of Margaret Thatcher, former editor of the Daily Telegraph and an Old Etonian. He has nicely epitomised the indifference, evident intentional ignorance and convenient innumeracy of a particular type of Conservative. Writing in his column in ‘The Spectator’ magazine (May 4th) he devotes a mere 262 words to writing-off the problems of those on low incomes in Britain.
[T]he people who best understand how welfare works are either its recipients or those who work on low wages and are scarcely better off for doing so
he writes. So far so reasonable. He goes on:
These people recognise that being on welfare is — in effect, though not morally — like having a job. There is a wage for it, plus various equivalents of overtime and fringe benefits, and the task is to get as much of these as you can.
There’s a half-truth in there. If work seems like an impossibility, or hardly worth the candle given its poor rewards and insecurity, self-interest would suggest that you look for all the benefits you might be entitled to – although many don’t. But he continues:
One effect of this has been to destroy the working class. Its more enterprising members have become middle class and the rest have discovered that they can live by not working.
At a stroke of his expensively-educated pen, Moore dismisses the existence of all those struggling to make ends meet in low-paid jobs. Four million Britons over 18 are in jobs that pay £7 per hour or less; seven million in ones paying no more than £8 per hour. (The minimum wage is set at just over £6.) They cannot reasonably be said to have joined the middle class, and if they could ‘live by not working’ they certainly choose not to. Continue reading The Callousness of a Conservative
I am publishing here a paper on ‘Welfare Myths and Welfare Facts’ (pdf 65kb). This is a summary, but please read the complete paper.
The belief, held by nearly one third of the population according to polling figures, that at least half of welfare claimants are either fraudulent or are refusing suitable work when offered, is demonstrably wrong. It is clearly fuelled by misleading and misrepresentative information fed to us not only by most media outlets but by our own leaders, probably as a ‘divide and rule’ strategy.
The total cost of out-of-work benefits is much smaller than is frequently claimed, including by those who are in a position to know better. A significant proportion of out-of-work benefits are ultimately paid for by their recipients through their lifetime NI and tax contributions. The large majority of those actually receiving JSA are intent on finding work and actively seeking it, but a proportion of them are currently doomed to failure – some probably permanently – through no conscious decision of their own.
As a result, the lowering of benefits and the threat of benefit withdrawal is increasing hardship for many, while probably doing little more than increasing ‘churn’ in a sluggish labour market. Given the current low level of benefits in relation to a generally acceptable minimum income and the dubious fairness of an absolute obligation to work for others for a breadline wage, further downward pressure on benefits seems to have little justification morally, socially or even economically.
The only real way to see more of the long-term unemployed improve their own lives and their contribution to society is the provision of more and better-paid employment opportunities. Along with this will have to go resource-intensive engagement with those who are poorly equipped to support themselves, never mind to play a productive role in society.
Download the full paper: ‘Welfare Myths and Welfare Facts’ (pdf 65kb).
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’
This post is on 2 pages. Please click on the appropriate page number at bottom of text to navigate.
There’s a very interesting take on UK unemployment trends in the July NIESR Review, written by the NIESR director Jonathan Portes. One should perhaps bear in mind that he has previously worked to formulate employment policy for the Blair and Brown governments.
His essential point is that while the overall UK 16-64 employment rate has remained steady for over 30 years, this has been combined with some major changes in the patterns of that employment. This has major implications for the likely outcome of current government policy towards those out of work and their benefits.
In this post I summarise Portes’s findings and analyse more closely two points his paper overlooked: the impact of increased part-time working and the discrepancy between a rising population, a steady employment rate and falling numbers of benefit recipients. The findings suggest that the situation may be rather more serious than Portes fears, with significant implications for social welfare and cohesion. Continue reading Unemployment and Policy
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.
As Laura Wilkes, Policy Manager at the Local Government Information Unit, points out today on LabourList
…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.
This is a response to ‘The Spirit Level’ and the response to it, with discussion of the implications to be drawn for tackling inequality. You can also download it as a pdf (67kb).
This article is on 5 pages, and you can go to the next page you want by clicking on the relevant number at the bottom of each page.
Introduction – Selling Equality to the Rich
‘The Spirit Level’ is a book-length distillation of the work of Richard Wilkinson and Kate Pickett on the statistical relationship between standard measures of economic inequality and various social ills, such as ill-health, lack of social trust and crime. Its importance, and the controversy surrounding it, derives from its apparent ‘scientific’ justification of what might otherwise be instinctive or ‘moral’ beliefs in the desirability of equality.
The significance of the work is in the prospect it raises of a new dimension to the clash between rich and poor – clear-cut evidence showing that social factors affecting the whole population (rich and poor alike) are beneficially affected by a smaller spread between the highest and lowest incomes. These benefits come over and above the individual advantage of a higher rather than lower income.
While not necessarily disputing their conclusion, in this essay I point out the potential weaknesses that cast doubt on their particular analysis, and so render it a less than potent political weapon for egalitarians. At the same time I emphasise the importance of tackling overall inequality, not just inequality of income and wealth, for the benefit of the vast majority who would certainly gain. Continue reading Beyond ‘The Spirit Level’ – Tackling Inequality
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.