I was on LBC last evening, being interviewed by Iain Dale, who offered one of the standard responses to Corbynomics - which is that it will lead to a loss of confidence in UK business.
The response I gave was in three parts.
First, Corbynomics is great for honest businesses, which are the ones we want as they invest, pay living wages, offer apprenticeships and are dedicated to the communities in which they are based. These are also the businesses that pay their taxes. They want the tax cheats eliminated because they try to undermine such sound business practices by their short term exploitation in pursuit of a quick buck. The last thing the UK needs right now is quick buck business.
Second, with a focus on job creation in the UK through investment in construction, technology, IT and so much more a Corbyn government will provide a bonanza for business that they should be welcoming with open arms.
And third, the spin off from this will flow into every constituency of the country delivering growth whatever the size of the company.
How can a government that wants to invest within the means of the economy to do so be bad for business? Only a warped mentality that thinks paying tax is so bad that people would rather not make profit than share a part of it could ever come to that conclusion.
But we will hear it time and again.
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Glad you seem to be getting a good amount of media time at the moment to argue the case. Keep up the good work!
I get the distinct impression the tide is turning Richard! Keep paddling!
I hope the tide is turning, but it’s going to be a big job! Fortunately, Corbyn is no Canute (I hope). I see so many messages on all sorts of social media churning out the same old stories – Labour always ruins the economy, spends too much, robs pension pots, etc etc. People actually believe the economy is improving, despite the fact that they don’t seem to know anybody who’s better off. I’m no economist, although I’ve learnt a lot from following this blog and having a daughter who’s an economist, so I don’t have the confidence to take people on. I try to explain the theory as I understand it in simple terms, but people seem to have been brainwashed.
“People actually believe the economy is improving, despite the fact that they don’t seem to know anybody who’s better off.”
That’s a great line. Sums it up beautifully. Perhaps the new opposition can begin by reaching out to those who are worse-off. They might also challenge the government to identify those who are doing well. Build a narrative. The longer the stagnation continues the stronger the narrative becomes. It looks like Danny Blanchflower has already started on Twitter. That’s the spirit.
Richard,
Speaking of big business – it doesn’t come much bigger than Johnson and Johnson in the US. What do you think of their Credo? The words are engraved at their headquarters and read the following:
“We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.
We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family obligations. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical.
We are responsible to thecommunities in which we live and work and to the world community as well. We must be good citizens — support good works and charities and pay our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.
Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.”
Johnson and Johnson
According to Richard’s earlier blog, almost half of the 800 largest companies were involved in some avoidance scheme in 11/12.
http://www.taxresearch.org.uk/Blog/2013/06/06/381-of-the-biggest-businesses-in-the-uk-tried-to-avoid-13-1-million-of-tax-each-in-2011-12/
Whilst, we would be correct to pursue these monies, and it could enable honest businesses to compete more fairly, I don’t have the same confidence most large companies would embrace Labour with open arms.
So?
Just remind Mr Dale that UK business the City of London.
1700 people at Redcar need to hear that message loud and clear right now.
Sorry try again: UK business does not equal the City of London
yes- I can barely believe the debate is starting and there are tenacious people like Richard and many others to keep it alive-stripping off the dowdy mental wallpaper will take years but it seems to have started in earnest- I was beginning to doubt I would live long enough to see it happen!
Society consents and sanctions those who act defiantly
Rather like all crime
Thats a good message, especially the growth and opportunity part. Stay on that message. There is no reason why the confidence fairy shouldn’t work for your side as well.
Reminds me of Michal Kalecki’s essay, Political Aspects of Full Employment – http://courses.umass.edu/econ797a-rpollin/Kalecki–Political%20Aspects%20of%20Full%20Employment.pdf
Richard, you reckon the rhetoric you mentioned in this blog post has got something to do with what Kalecki said?
No one can ignore Kalecki, in my view
And is George Osbourne good for business?
He’s taken all that money out of the real economy through austerity, created panic saying that we were another basket case like Greece.
And what is the result? Aldi and Lidl have completely destroyed the Tesco and Sainsburys models of doing business. If I was an investor in any of The Big 3 I’d want Osbourne’s head on a plate.
Aldi and Lidl identified a big fat oligopoly that was ripe for the taking, moved in and took advantage. Investors in the big 3 are not entitled to super-normal, rent-seeking, oligopoly profits.
Osborne is probably among those who would simply say that competition should not be obsrtucted.
The battle for sensible economics, call that Corbynomics or MMT or whatever, is generally understood as a leftish cause.
But, as the title of this posting shows it needn’t be. There is a large element of common cause to be made between workers and business. Sure, there will always be a conflict between workers and capital, but there needs to be something to argue over – which there won’t be if previously productive businesses are forced to close down due to economic recession.
So there needs to be a measure of common cause, not necessarily with big business, but honest and productive businesses – both large and small.
Good for big business is not the same as good for big business people. The prospect of paying more tax guarantees opposition to Corbyn, irrespective of business opportunities. It’s not a question of ‘does this help my business grow’ but ‘will this help me buy a yacht’.