I was intrigued by this tweet on my timeline yesterday:
I do not know Jos Bell. I do know Danny and Ann and I have spoken to both recently but what I am saying here is purely personal.
What I felt was a need to reply in more than 14o characters to answer three questions. The first is why it had been worth giving Corbyn a go. The second is why that did not work. The third is what now?
I've recounted several times, already, that despite the media suggestions I did not, as such, write Corbynomics. It's true that a significant number (but not all) of the ideas in Jeremy's economic manifesto (which has now gone from his website, and of which I never seemed to keep an electronic copy (NB: now located)) were written by me, but not for Jeremy per se, and certainly not in the way in which he presented them.
The three main ideas are summarised here. They were more progressive taxation to create greater equality both as a matter of fact and to deliver justice in the way that the deficit was tackled. Second, the tax gap was to be tackled to provide funding and to create a level playing field for business. And third, People's Quantitative Easing was, in combination with a National Investment Bank, to be used to fund a new industrial strategy. What the document did not say was what the overall vision was: it focussed on policies not philosophies but it rattled the mainstream media and much of Labour nonetheless.
A year on it's hard to see why. Progressive taxation was hardly a surprising proposal from a left wing politician whilst closing the tax gap is just about everyone's aim: the only problem was Jeremy used my £120 billion figure and did not make clear that not all of it could be collected. And People's Quantitative Easing now looks as if it will be delivered by the Tories. All were issues on which I had written extensively: of course I was going to support a politician who said they were going to use them.
So why didn't things work out? There are four fundamental reasons.
The first was a lack of conviction. John McDonnell became shadow chancellor and the first thing he said was he would sign up to George Osborne's bizarre, and now abandoned, fiscal charter, guaranteeing a balanced budget. It was lunacy. I told him so. He still put it in his conference speech only to have to U turn on it. But the damage was done, and has remained done. The message was clear: a Corbyn / McDonnell opposition was going to do economic policy on Tory ground. Radicalism disappeared and never returned. Labour's own fiscal charter is evidence of that: it was re-heated neoliberals Balls at best. If this was meant to be what left wing economics was meant to deliver then it looked very much more like a lot more of the same failed policies to me based on a total misunderstanding of what the role of the government in the economy actually is..
Second, Corbynomics disappeared. PQE, which had been the defining economic and industrial symbol of Jeremy's election campaign - the policy that was going to deliver growth, jobs, new industry and hope - might well have never happened. It's taken Stephen Crabb and Theresa May to revive it. In its place nothing was offered at all; just vague words at best for months and then reference to a National Investment Bank on occasion but nothing else.
Third, I had the opportunity to see what was happening inside the PLP. The leadership wasn't confusing as much as just silent. There was no policy direction, no messaging, no direction, no co-ordination, no nothing. Shadow ministers appeared to have been left with no direction as to what to do. It was shambolic. The leadership usually couldn't even get a press release out on time to meet print media deadlines and then complained they got no coverage.
Fourth, and critically, there was no vision. A team of economic advisers were set up, but never properly consulted, let alone listened to. Three enquiries, into the Treasury, Bank of England and HM Revenue & Customs were established and given far too long to report: none has as yet. I gather the tax report is in draft: I have not seen it. Whether it will be presented is anyone's guess. The Bank of England study has collapsed with the departure of Danny Blanchflower. Of the Treasury report I haven't a clue. The point is though that for coming on for a year now policy has been on hold for these reports and the world has moved on. That's just not competent.
The same problem has been seen around Brexit and so many other issues. If Jeremy and John had known what they were doing these impasses would not have happened. The impression left is that they have created a movement that hates what's happening in the world and can get really angry about it, but then has not a clue what to do about it.
If this movement was really visionary that would not be the case. Vision is about having a guiding principle that directs your actions. It is about what you want to achieve. It is positive. It can never be negative. So the Tories know they want to make the market ever friendlier for a limited number of businesses: that is apparent in all their policies, like it or not. All that I have got so far from the Labour left is a message of what it is opposed to. That's something. But it's a long way from being enough. Vision is about knowing what goes in something's place and this is what I cannot see coming from Momentum or supporters like Paul Mason, whose book Post Capitalism in many ways typifies anti-visionary thinking by offering nothing of substance at the end of a long analysis.
Vision in required on the economy and what it is for; about the role of the private sector, and its banks; on tax and benefits and social justice; on health and so much more.
It would not have been hard: try this knocked up in minutes.
The UK economy exists to meet the needs both material and personal of people in this country and should be organised so that all get just rewards for their efforts, a chance for personal development and the opportunity to work how they wish to meet their needs.
The state partners with private enterprise in fulfilling this goal: each is vital, both add value and have a role to play. In particular the private sector must adhere to the rules of fair markets established by the state and pay its taxes. Finance is the servant of markets, and not otherwise. It must therefore be kept in a proportionate role.
We need a tax and benefits policy that integrates with macroeconomic goals for growth and inflation whilst being consistent with the government's goals for social and economic justice, including in tackling inequality and overcoming disadvantage in all its forms.
Health must be available for all at lowest possible cost and highest efficiency. This requires considerable integration of resources and leaves no room for fractured supply in quasi markets which do not reflect the diverse and vey real health needs of people or populations as a whole.
It would be easy to write more: if anyone had shadow ministers would ave had a clue what they were meant to be doing. But no one offered anything like that. There was no idea what policy was for, no big ideas and so not many small ones either. The result was a mess and that's because it seems like Corbynism is an empty shell that opposes capitalism for the sake of the oppressed but has no clue as to what to yet in its place. And that's not responsible, it's not electable and it's not going to work.
So what's next? It's not my job to tell Labour. If anyone wants to listen they're welcome to do so though. I suggest five things.
First, a clear policy for growth that is intended to end a recessionary environment. This involves borrowing, state spending, lower taxes for the time being, the creation of jobs in every constituency (which is one of the primary goals of the Green New Deal) and the bank up of PQE if required to manage debt, if required. Nothing is more important than this. New housing has to be at the heart of this programme, as is the creation of a sustainable foundation for a twenty first century economy. This is building for the next generation.
Then some key obstacles to progress need to be tackled. PQE has to be used to end PFI to end the burden it creates on public services. It could also be used to cancel student debt, liberating large numbers who can never dream because of the debt burden they suffer, and which drags down the economy with them. And the crushing blows to so many imposed over the last years - from attacks on those with disabilities to the bedroom tax - need to be reversed, and could be.
Third, health has to become universal and all vestiges of the internal market have to be swept away.
Fourth, education has to be free. Corporation tax increases can address part of this: growth and the tax gap the rest, with ease.
And as to Brexit? Nothing should be agreed without a second referendum: the EU has allowed them before. It should do for the UK. Implicit in that is discussion on migration, and the creation of a positive programme for the role it can play in the UK both economically and socially which does not, however, ignore the social constraint on the rate of change any society can manage to handle successfully.
Is this enough? No, of course not (there is nothing on defence, corporate reform, the environment per se and much more) but I offer it to show a vision can be matched to policy that could deliver costed and affordable change that economic theory can show should deliver growth with manageable debt in a way that provides a coherent and deliverable alternative to anything this government is offering, and which provides people with real hope.
I have not seem or heard a hint of much of anything like this from Jeremy Corbyn since last summer - and then I was doing all the running for him. I would like to hear it form another candidate for Labour leader now. If we don't I will despair about the vision of so many people engaged in politics with no clear idea as to why.
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I think you’re being a bit harsh on John McDonnell as his call to deliver a balanced budget was more political than economic. Voters on the doorstep don’t understand deficit spending as it is counter intuitive to their personal experience of economics; the weekly management of the household budget. They can understand the difference between current spending and the need to invest. Given John McDonnell’s history in local government finance I’m sure he has plenty of tricks up his sleeve to reclassify current spending as long-term capital investment.
It was incompetent
At the first hint of a challenge he backed off
You basically have no appreciation of the politics, and no understanding of the political environment in which politicians who agree with your proposals have to operate.
Economics is all that you understand. You have a simpleton’s view of politics. Your article shows that you believe (simply) that advocating the logically correct policies is sufficient.
Perhaps you’re unaware of Green *politics* too. For decades the Greens have advocated the scientifically correct, rational policies. By your simpleton outlook, then, you must be bewildered why the Green Party *still* wields piffling political power – “incompetence”, the way you see things.
Your extreme political naivety is further illustrated by your gullibility in thinking that the Tories (May, Crabb, etc) actually mean what they say when they spout stuff in line with your recommendations, or that Owen Smith seriously believes in any just principles of economics as you do and not simply in the advancement of his own political career.
If Corbyn is deposed, it will be because of fatal blows struck by people like you. And then your recommendations will be much further from implementation or, more likely, consigned to the dustbin.
You should have stuck to academic economics. You should not have got involved with politicians because politics is something you do not understand.
I get it
I am incompetent
Why are you wasting your time telling me then?
And whilst you’re at it, why was Jeremy so keen to use my ideas last year?
Please explain
I am not sure how this comment system works. I want to reply to ‘rippon’. I want to say that although thete are obviously profound differences of opinion her, the discussion is conducted in a reasonable and courteous manner, which is impressive. The comment by ‘rippon’ irepresents a lurch into the sort of abusive, contemptuous style found in so much political comment writing these days – the Guardian’s ‘Commonet is free’ is a prime example – and which comes overwhelmingly from Corbyn supporters.
It takes a massive effort to try to keep things sane
It is why I may have to turn comments off today
I quite like your article. I generally support Corbyn, but it’s possible he really isn’t cut out to a leadership role – he represents, at last, the idea that opposition to neoliberalism is still possible. At least your ideas are a positive, if very generalised, expression of something more humane and sustainable than what we have now. I would disagree about “lower taxes” – for who? Taxes from corporations, capital transfer taxes, wealth taxes etc would find more than enough money for government investment in building, energy efficiency, renewable energy, education and health. Similarly with migration, there are a lot of reasonably wise and non-xenophobic citizens who might suggest that England is “full-up”. As England is the most densely populated country in Europe, bar a few principalities, I think they have a point. Whether Labour’s present inability to articulate anything similar is due to Corbyn’s inadequacy or the tidal wave of opposition that he churned up on his arrival, I don’t know. Rippon is rude and OTT in his criticisms. But he makes quite a good point, rational policies don’t always win votes. Perhaps the majority of the public almost always gets what it deserves, the problem of this result arises if you’re a member of a less compliant and more far-sighted minority who’d actually like something wiser and better.
I do think this article displays a degree of political naivety to assume that Corbyn and McDonnell weren’t going to be held hostage by a PLP that disagreed with them. They both had to make a strong effort to balance out their desire for progressive economic policy with at least making an attempt to win over a highly skeptical/hostile PLP.
It is regrettable that the watering down of the radical economic agenda were not sufficient to save the Labour Party from its now near certain split. It is similarly regrettable that you have lost faith in the politicians that actually might make a difference on this agenda.
I wish you all the best in taking your ideas forward outside of parliament.
Terriblr typos!
I have to agree that Jeremy Corbyn would struggle to convince many of labours traditional voters. I’m from a very working class part of Yorkshire and amongst most he is derided more so than David Cameron was. I accept much of their derision is wholly based on a anti corbyn media but that is what we have and it won’t change any time soon. On saying this I don’t see anyone within the labour party other than Andy Burnham who could reconnect with labours core electorate.
Thanks for a really interesting and very worrying article Richard, I hope that you’re not right – it seems like there’s little else to do right now as neither Smith nor Eagle have offered anything much.