Danny Finkelstein has an article in The Times this morning under the heading:
Labour's war on capitalism will end in tears
It's all trite nonsense about John McDonnell wishing to overthrow capitalism and Venezuela being his supposed role model. So far, so much a strawman argument, even if the Tories still know that these work to their advantage, and too many in Labour really do not do enough to kick them into touch.
What should be said? Three things.
First, capitalism is killing itself. Since, as a matter of fact, capitalism depends upon the existence of markets in which there are many participants, and the whole trend within our current economy is for there to be fewer and fewer meaningful participants, with the sole remaining companies servicing some sectors looking more and more like monopolists with the absolute power to abuse consumers for their own private gain, then capitalism is dying from within. It needs no help from Labour to destroy itself: its already doing that. In that case the question for the Tories is what they're going to do to preserve capitalism, because right now it appears that they are only preserving abuse.
Second, in that case it is for the Tories to say what they going to do to regulate markets to ensure that they are effective when every current trend shows that markets are trying to destroy competition which is the only thing that neoclassical economic theory says makes them efficient. In other words, the Tories have no right to suggest that they will stand back and watch capitalism work precisely because capitalism is not working and the only thing that might help it do so is government intervention.
Third, it is absurd to claim that either capitalism or socialism provides a single, simple answer to the future nature of the UK economy. The truth is that the free market is a myth: there is, quite simply no such thing, and nor can there be without effective regulation. And at the same time, there is absolutely no appetite in the UK for a socialist economy where the right of a person to undertake trade on their own account, or with others, is denied. Nor can I see the Labour Party proposing this.
To put it in a nutshell then, Danny Finkelstein's argument is nonsense, because he's discussing something that Labour is not proposing. And, anyway, Labour is not discussing a purely socialist future precisely because there is no chance that this would be acceptable to most in the United Kingdom.
What we actually live in is a mixed economy. It is inevitable that this is what we will have for as long into the future as anyone can concurrently foresee. In that case if we were to have politicians ( and Danny Finkelstein is, I would remind you, a Tory member of the House of Lords) who were to actually talk sense then they would be discussing the required regulation of markets and the appropriate boundary between state and private sector in the columns of The Times, and would not be wasting their time was spurious arguments about suggestions that neither exist, and will never happen.
But we don't have politicians who talk sense.
And as a result, we get discussion of economic issues that are of no consequence.
And we get absurdly poor politics.
And yes, that does annoy me.
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Spot on. And I agree, Labour should be kicking this nonsense into touch with ease by now. Surely ALL economies are mixed economies to some extent – whether those in charge like it or not, & admit it or not. It’s all a matter of degree & getting the mix right. We had it right here once, and we can do it again. It won’t be the same as before, it can be better, but people need unbrainwashing first – from all sorts of dysfunctional ideologies, left & right. Please keep talking sense – it can seep through the thickest skulls in the end.
UK politics is now all about demolishing strawmen and selling snake oil. UK will be
Free to do trade deals with Australia (oops) and the Commonwealth (total amounts to 6% of exports to Germany, oops)
Free to surpass EU environmental regulations (which UK isn’t currently even meeting for air quality, oops)
Etc.
This lack of integrity coincides with the art of monetising lies by targeted messaging described long before Cambridge Analytica in The Age of Reason by Al Gore. It seems only a minority pay enough attention to see the lies and hypocrisy for what they are and the rest hear whatever confirms their prejudices while expressing their view that politicians are liars.
You may not have seen on BBC2 at 9.00 pm Monday “Robbie’s War, The Rise And Fall Of A Playboy Billionaire” which dealt with Robert Tchenquiz and his legal team fighting to save his home (mansion) from his creditors. He has a brother Vincent who had an interesting connection with the Labour Party and runs parallel financial operations. The brothers are certainly capitalists, borrowers and speculators in property on a major scale gaming the systems. They were hit by the 2008 crash. What the programme does not deal with are who were the lenders on such a large and risky scale, the scale of the damage inflicted on those unlucky enough to be in properties bought by them and the extensive political connections. Robert is complaining about the programme despite how little it says. But it could not have said much if any less.
Michael Hudson has just published a book J is for Junk Economics in which he goes to town on the likes of Danny Finklestein who is just another enabler of the neoliberal elites . But the very prospect of a Labour government under Corbyn , or somebody else has them all rattled. Is it because they know in there heart of hearts the whole system in rotten to the core and with very day that passes some further evidence emerges whether it’s Grenfell, Carillion, the Big 4 etc., etc. of that rottenness and what’s more the public are starting to notice .
Finkelstein’s article is propaganda – with the aim of putting some heart into Tories – he & they know its rubbish – but nevertheless like it for all that – not for nothing are the Tories known as “the stupid party”.
The Tories have to appeal to an economically illiterate electorate. It’s an approach which usually stands them in good stead, and I’d be surprised if they saw any need to change it. Education in economics would be a wonderful thing, as would education in what constitutes argument, but both, for the time being, are sadly lacking. With that last in mind, I recommend the book by Madsen Pirie, How to Win Every Argument. Many apparent ‘arguments’ are actually no such thing, simply varying degrees of emotional manipulation. Clarity of thought might be enhanced by this recognition.
Even the cleverest emotional manipulations couldn’t go on if facts, evidence and common sense prevailed in all the areas which are supposed to inform and educate the public from the time they start school.
The type of MSM we have does not help, as they are mostly owned and directed by manipulators.
The type of politicians we have does not help either, as most are concerned with short-term career moves, and their own future.
Education could break through all this blockage, but the type of mainstream education we have now rarely encourages proper thinking and debating, merely presenting sound bites and hearing oneself speak. Lack of time, properly trained staff, resources…not to mention the League tables and the prevalence of competition instead of cooperation.
These are some of the stumbling blocks.
In other cultures and systems, critical thinking and personal development matter more than grades, and many of those societies which develop this mindset in Education are altogether better balanced than we are in all respects, including economics and politics, and most importantly in individual and social well-being.
Capitalism feeds on and needs ignorance of economics and politics to continue so they can shape the people they use. It needs an education system which develops mainly technical skills in order to feed its development. It has that in the UK, and wherever it thrives.
But like those planned obsolescence machines, it’ll come to the end of its life.
What will the people in power replace it with? Depends who they are, and how they are kept in check, or not.
The Tchenguiz family are repeat six figure donors to the Conservatives. I’ve never heard of any Labour connection.