Winner of the New Statesman SPERI Prize in Political Economy 2016


Showing posts with label Chris Grey. Show all posts
Showing posts with label Chris Grey. Show all posts

Wednesday, 20 November 2019

How to disguise a really big lie? Put it on a bus.


The Tories, and particularly their leader, lie all the time. It is quite shameless. But there is a corollary to this. If your whole campaign is based on one big huge lie, make it your main slogan. Because, even today, many voters still think you wouldn’t dare lie about something so important. Unfortunately recent history suggests otherwise.

We all remember the £350 million for the NHS lie in the 2016 referendum. It was famously on a bus. Except it seems that a good part of the voting population has forgotten the reason that slogan is notorious. It was a huge lie, the opposite of the truth. The have forgotten because the Tories have a new bus with a new slogan that a lot of voters appear to believe. In reality it is as big a lie as the one made during the referendum.

Also consider the key Tory slogans in the last two elections. In 2015 it was “Strong Leadership, A Clear Economic Plan And A Brighter, More Secure Future”. Within a year the ‘strong leader’ had resigned, businesses were unable to plan and the UK’s future was anything but secure. In 2017 who could forget “Strong and Stable”. May lasted two years but no one would call those years stable.

In 2019 we have “Get Brexit Done”. I can confidently tell you that this is in the true tradition of the earlier slogans. A more truthful slogan would be “If you liked the last three years of Brexit deadlock, vote Tory”. Here is why.

It is true that Johnson will get enough MPs to pass the Withdrawal Agreement (WA) if he wins the General Election. But the truth that much of the media has hidden is that the WA was always going to be easy if the UK government was prepared to put a customs border in the Irish Sea. Johnson got that agreement because he capitulated on a red line that he, his fellow MPs and the DUP had forced on Theresa May. Why did the ERG allow Johnson to get away with that? Because they saw a brand new opportunity for a No Deal exit at the end of 2020.

What the WA does not specify is the nature of the trading arrangement between the EU and the UK excluding Northern Ireland. This relationship has always been the sticking point in getting the WA done, and why it has taken so long. The WA does nothing towards saying what that relationship will be, except that it is unlikely to involve being in the EU’s Customs Union or Single Market. Johnson says he wants a Free Trade Agreement (FTA) with the EU, but FTAs normally take over 5 years to negotiate.

Johnson has given himself just a year, until the end of 2020. On that date the transition agreement, where we stay in the EU in everything except name and voting rights, comes to an end. Johnson has pledged to not seek an extension beyond 2020, even though one is on offer. That pledge was the basis for getting Farage to withdraw his candidates from Tory seats. The problem is that no one will be able to negotiate an FTA within a year.

Here is the ERG’s big hope, and why Farage withdrew. If Johnson keeps to his word, we face a new cliff edge at the end of 2020. Unless he breaks his word, we will drop out of the EU with no FTA at all. (The great Michael Dougan puts it very clearly here, although I’m not sure about the shirt.) This would be disastrous for the UK economy, but it is what the ERG have been trying to get since 2016. If he breaks his word expect all hell to break loose within the Tory party. If he decides on No Deal, all hell will break out in the Tory party, and parliament might well try to force an extension on him. In other words the next year will be just like the last three.

More generally negotiating an FTA is difficult and time consuming stuff, because it involves UK interests of various kinds that will be trying to get the government’s attention. It will mean that Brexit remains constantly in the news and taking up politicians’ time. This is partly because the government has not thought a lot about how to deal with the many difficult problems an FTA presents, preferring as usual to pretend any difficulty does not exist. Once again, as Chris Grey notes, the EU are much better prepared.

I know I go on about the media a lot, but all this should be common knowledge beyond those who research these things. It clearly is not, with plenty of voters prepared to vote Conservative despite all Johnson’s failings because they believe he will end the Brexit turmoil. This is not about journalists taking sides, but stating facts. I have heard plenty of journalists ask Conservatives whether it is credible to get an FTA done in 1 year, but with little or no follow up.

As just one example, I heard a Conservative MP (I think it was Vicky Ford. Chelmsford) defending the FTA in a year nonsense by saying most of the deal was already done, with no follow-up by the interviewer. What she appeared to mean is that we currently trade with no tariffs with the EU so that will be the basis for negotiations. But of course that is nonsense. The negotiations will start as if the UK was a country with No Deal with the EU, and the UK will have to make the case for moving towards our current position as a member of the EU.

That case will involve all kinds of complications which Tory ministers will find it hard to resolve. For example zero tariffs will only be possible if the UK agrees to adopt all the regulations the EU has which could influence competition, which is most EU regulations. The Tory government wants to get rid of many of those regulations. That means the UK cannot have zero tariffs, because the EU cannot allow an outside country to undercut their own producers because of weaker labour or environmental regulations.

Then there are all the specific thorny issues, like fishing. Tony Connelly brilliantly fillets the complexity here, but in essence the UK cannot exclude other countries from its waters (the dream that led many fishermen to vote for Brexit) and still expect to sell most of its fish to the EU tariff free.

So as far as Brexit is concerned passing the WA is the beginning not the end. If you really want the issue over with, Labour are the much better option. The deal Labour are likely to negotiate within 3 months of taking office will be much softer: almost certainly staying in the EU’s customs union and something close to being in the Single Market, if not in the Single Market. That is why it can be negotiated quickly. We then have a new referendum on that deal within six months.

The contrast between Labour and the Conservatives is clear. Under Labour Brexit is settled by the people in the Autumn of 2020. Under the Conservatives we face a new cliff edge at the end of 2020, and possibly negotiations for another five or more years, or alternatively a No Deal Brexit with all the consequences that will bring. If you want to get Brexit done, don’t vote Tory.




Tuesday, 29 October 2019

Journalists’ own pact with the devil


While Dominic Cummings is no genius, he does have a good understanding of how the UK media works, and therefore how to manipulate it. There are many ways to do this, but one of the most obvious is to use privileged access in return for uncritical coverage. This is how it works.

One of the prizes journalists most aspire to is being first with the news. To get an ‘exclusive’ story. In the political world the biggest generator of news stories is the government. This gives the government the potential to act as the devil to which journalists can sell their souls to. The value of access increases when the government reduces the amount of information it supplies for free in other places like parliament. The price journalists pay to be given privileged access to news, or more generally some insight in government strategy, is to report what is fed to them without the critical eye that this same journalist might normally apply to this information if it was released publicly.

Of course not all journalists are prepared to do this. But if their personal views are sympathetic to the government, or more importantly if their employer likes to take lines that are helpful to or supportive of the government, it is much easier to sell your soul in this way. It is a phenomenon that all journalists understand, and it is an art that all governments practice to some extent. What is now clear is that Dominic Cummings is willing to buy as many souls as he can to counter bad news or his own mistakes.

The result is that some journalists that have not sold their souls have begun to speak out about what is going on. One is (not surprisingly) Peter Oborne, who details here (HT Jon) many of the (often false) stories that Cummings has generated which have allowed the press and the BBC to hide bad news for the government. (Short interview version here.) Perhaps more surprising is this from Adam Boulton of Sky News, who effectively supports Oborne and adds another example from the BBC. He writes
“In 25 years as Sky News' political editor I never sought favours and was never given them, perhaps because I worked for challenger companies rather than the legacy duopoly of ITV and BBC. I am expressing a personal view here, not speaking on behalf of Sky News. But I can confirm that I and my Sky News colleagues still work with the same "no favours" impartiality.”

My personal impression that Sky journalists are better in this respect than the BBC in particular is backed up by the latest Ofcom survey (figure 11.5), where Sky News does better than the BBC on being accurate, trustworthy, and particularly unbiased. However such surveys may be distorted by the huge campaign in the Brexit press to suggest the BBC is biased.

That journalists from particular right wing newspapers act as agents for a right wing, pro-Brexit government should hardly be a surprise. You only need to look to the same newspapers' coverage of the Johnson domestic incident earlier this year to see this in operation. But these newspapers power becomes much stronger when the line they take is not contradicted by the broadcast media.

The BBC is who really matters here, as it is watched by far more people for news than Sky, which makes what the BBC does much more important than anything Sky does. The importance of the BBC is underlined by a new report by Dr.Richard Fletcher and Meera Selva for Oxford’s Reuters Institute. It shows that Leavers are less likely to use non-MSM sources than Remainers. Equally, few Leavers rely on their pro-Brexit newspaper alone: they also typically watch the BBC. Indeed 51% of Leavers say the BBC is their main source of news, with just 30% saying their main source comes from online, while the equivalent figures for Remainers is 38% and 45% respectively. This is not too surprising given that Leavers tend to be older and Remain voters younger.

The report interprets the importance of the BBC for Leave voters as implying they get their news from one impartial source. I would dispute that. Of course the BBC is not a shameless propaganda organisation of the kind we see in the Brexit press, but instead it works to support the Leave case in a number of subtle and not so subtle ways. Many of these are detailed by one of the best Brexit commentators around, Chris Grey.

I have argued many times before (see here for example) that during the referendum the BBC acted in a way that was very helpful to Leave by treating their (obvious) lies as opinions, to be balanced against the opinions (which happened to be truths) of the Remain side. The BBC most often excluded experts, and when they were included they were balanced with someone from the Leave side. This is a view shared not only be nearly all economic, trade and legal experts, but also some journalists e.g. Peston quoted here. That continued after the result. Claims made by the Leave side, and by the government, that were at least questionable would often go unquestioned.

Some of this comes from simple ignorance. The BBC has some very good journalists who understand the issues around Brexit, like like Katya Adler who reports on the view from Brussels, but most prime airtime is given to political generalists who at least appear not to understand the issues involved. I remember the moment that Johnson finally got his deal with the EU. Laura Kuenssberg gushed that few people had thought it possible to get a deal, while it was left to Katya Adler to explain that Johnson had essentially just accepted the first proposal put forward by Brussels over a year ago. No one asked why Johnson had effectively accepted a deal that his predecessor had said no UK PM could make.

Some of this apparent ignorance comes from perceived necessity. The pressure from the Brexit press and Leave politicians on the BBC is relentless, and there is little to balance this on the Remain side. The obvious conclusion that too many BBC journalists draw is that keeping out of trouble means not giving Leave politicians a hard time. Some acute media observers like Roy Greenslade conclude that the BBC does a great job standing up to this pressure, and of course given this pressure it could be a lot worse, but I think it does take a toll.

The structural problem can be stated fairly easily. The Leave case is essentially fantasy. Beyond a concern about immigration the Leave side have nothing that can justify the great harm they intend to inflict on the UK economy. Yet when the Leave side talks about taking back control, few BBC journalists ask obvious questions, like what EU law that the UK voted against are the Leave side objecting too, or how can trade with countries we hardly trade with compensate for the trade we will lose with the EU? If the BBC allows the Leave fantasy bubble to remain unpricked, you are in effect giving credibility to that fantasy, which is to support it. Another way of making the same point is that the BBC has allowed the Leave side to control the Brexit narrative for three years.

Unfortunately the BBC’s problem goes beyond being cowed by fear of the Leave side, or the liberal guilt that Grey mentions. There is little doubt that some of those now working in the BBC are, consciously or otherwise, pushing the Leave cause. For example Question Time sometimes has audiences that are clearly unbalanced towards Leave, while its selection process is supposed to produce a more balanced audience. The number of appearances of Nigel Farage has raised questions.

A more specific instance was the BBC’s shameful attempt to first ignore and then attempt to rubbish the evidence on the Leave's referendum spending scandal, discussed in detail by Peter Jukes here. Or the unmediated coverage of Farage’s Brexit party launch that was the last straw for one BBC war reporter. Or Humphries on their flagship political radio programme. Or the reluctance to interview non-politicians involved in successful legal challenges to the government. Or the publicity they gave to recycled 'Economists for Free Trade' nonsense. And so on.

The BBC has an obvious way of refuting these claims. They could explain their behaviour over issues like 2016 referendum spending. They could commission independent research that looks at the kind of issue that I mention here. Just quoting YouGov polls that obviously reflect the Brexit press campaign against the BBC does not remove the evidence that the BBC is shifting its reporting in response to that pressure and in some cases actively supports the Leave side.











Tuesday, 13 November 2018

Governments of fools?


Dominic Raab was widely mocked for his remarks about only recently understanding the importance of the Dover-Calais crossing (I defy anyone not to laugh at this from Artist Taxi Driver). The derision may be a little over the top, as it was when Gove was misquoted as having had enough of experts, but they and more serious admissions of ignorance are ridiculed because they reveal a deeper truth. As in the US, those ruling us in the UK do not really know what they are doing to a much greater extent than in previous years (see George Eaton here).

That last sentence perhaps requires clarification. They are not fools without any purpose. Brexit is a triumph of the heart over the head. They know what they want, and just do not care too much about the damage it will do. But the ‘misunderstanding’ by Brexiters over what they signed up to in December 2017 that persisted for weeks shows how dangerous not paying much attention to facts (in this case the words of an agreement) can be. Theresa May wasted at least a year completely misunderstanding the EU, and firing those in government that did. Perhaps her biggest act of ignoring the obvious was embarking on the Article 50 process without any prior discussion of what was possible and what was not, which as many people noted at the time was a sure way of ensuring the EU got pretty well what it wanted. If you do not believe all this, read Chris Grey here.

If you are tempted to put this all down to the unique stupidity of Brexit, or the uniqueness of Donald Trump, you really need to read my new book (short summary here). These traits were there with austerity, or the ‘hostile environment’, if you did the research. Economic historians of the future will discuss at length which did more needless economic harm to the UK economy, austerity or Brexit (assuming Brexit goes ahead). The only real debate about George Osborne, who committed the UK to pro-cyclical fiscal policy in the middle of the Global Financial Crisis, was whether this reflected deliberate deception or unforgivable economic ignorance (chapter 1.13 of my book), and if the former whether it was all about shrinking the state or a more superficial search for political advantage. In later years it became simple deficit deceit for neoliberal ends. In the US the priority of the Republican party for years has been tax cuts for the rich paid for by reducing state services for the poor, and a selective concern for the deficit combined with imagining tax cuts pay for themselves have been useful devices (lies) to achieve that. .

If politicians on the right display wilful ignorance to achieve their goals, they have knowledge of a kind that exceeds their opponents on the left by miles. They are extremely well versed in the arts of political spin, or more generally of getting votes by disguising the true objectives of their policies. Part of this works through think tanks, and part through the right wing press. In turn both these groups, plus politicians themselves, put huge pressure on the media (in the UK the BBC in particular), and that pressure works. The table below comes from this study and shows how often the BBC used political sources in 2007 and 2012:


Whereas the bias towards Labour was small in 2007, and was perhaps expected as they were also the government, by 2012 Conservative sources were almost double Labour sources. (Ironically LibDem sources declined in 2012, despite being in government.) Something similar happened to think tanks, according to this study comparing 2009 and 2015. For example in 2015 the IEA was referenced about 3 times more often than the IPPR. The detail in the paper of where the right wing bias was most prevalent is noteworthy although not that surprising.

Even when the BBC does manage to maintain balance, as it did in the 2016 referendum, this is often at the expense of facts and expertise. (Much the same occurred in the US before Trump was elected, as I recount in Chapter 7.8 of my book.) This leads to an obvious danger which we can see the political right exploiting more and more in both the US and UK. Whereas spin used to involve distorting the truth by selective use of facts or inventing clever but misleading slogans, it can now involve simple lying, as I experienced with my own work recently. Has this really got worse over time? I cannot cite any hard evidence for the UK, but there does seem to be that impression (see the first few tweets of this thread and this article by Stephen Bush). In the US there can be no doubt things have changed: not just Trump but with much of the Republican party over issues like health care or climate change.

This emphasis on the right of getting people to vote for you at the expense of examining the impact of your policies is reflected in the careers of many of the Brexiters, as William Davies points out. Trump was a TV star before he became President. Reagan was a movie star, although he at least was a Governor before becoming President. It is hard not to see these trends in right wing politics as starting with Reagan and Thatcher, and that much abused term neoliberalism. It was Thatcher that really began the politicisation of and disdain of the civil service, when being ‘one of us’ was valued over expertise.

You do not need experts, or you are only interested in experts who are one of us, because you have an ideology to guide you to the truth, or you are suspicious of any expertise that does not share your ideology. One of us is one who shares an ideology, in this case the ideology of neoliberalism. Neoliberalism wants as much as possible to be organised as a market. If that includes democracy itself (democracy is just a market for votes) then there is nothing preventing you employing all the tricks of advertising, preferably not encumbered by any regulators. Politics becomes the art of selling, rather than the assessment of policy. [1]

Why do I call the period after 2010 in the US and UK neoliberal overreach, as opposed to straight neoliberalism in the 1980s? After all there are some similarities in the UK between the two periods. Both Osborne and Thatcher started their terms in government with economic experiments that went against received economic wisdom. Both tried austerity (a fiscal contraction in a recession). I don’t want to minimise the harm Thatcher did to parts of the country, but her austerity was temporary [2] and the monetarist experiment was quickly abandoned, with the result that the recovery was only delayed by a year or two and the economy in aggregate eventually recovered in the true sense of the term. In contrast the slow recovery in the UK, US and Europe since 2010 seems to have had permanent and large negative effects. An interesting question is how much this difference between the two periods in the UK reflects different degrees of control over the media.

But the main reason I call what happened after 2010 overreach is that the neoliberalism of both Reagan and Thatcher was in many ways popular, and so there was less need to dress policies up as something they were not. In 2010 there was no popular demand for a reduction in the size of the state, so it required a form of subterfuge: what I call deficit deceit. Tight targets for immigration made no sense for neoliberals who wanted to reduce red tape for firms, but it was useful as a way to deflect anger over austerity and win votes.

A better way to describe Brexit than heart over head is the triumph of ideology over knowledge. Neoliberalism isn’t the only ideology behind Brexit. There are elements of English nationalism that William Davies discusses in his piece noted above and Anthony Barnett discusses so well in the Lure of Greatness. But the disinterest in facts or experts  and the absence of shame in telling whatever lie is required to get what they want is very much part of what I call neoliberal overreach. To those to whom evidence based policy is natural they appear fools, but they know exactly what they are doing and in terms of deception they are rather good at it.

[1] In this particular sense Labour from the 1990s to 2015 were not at all neoliberal. For example contrast Labour's 2003 Five Test analysis with the current government's lack of interest in the analysis of different types of Brexit. The glaring exception was Iraq, and that reflects what happens when you erroneously believe the national interest is to follow neoliberals in the US.

[2] Fiscal policy was tightened from 1980 to 1982, but this was almost completely reversed by 1984. In contrast fiscal policy was tightened in 2010 and it continued to be tightened until the present day.

Saturday, 16 June 2018

The bankruptcy of the centre right: Brexit edition


If you want to see how the centre-right can lose out big time you just need to look at the US. Last week a Republican senator who had been critical of Trump lost to a Trump loyalist in a primary. Partisan voters prize loyalty, you may say, but this is loyalty to someone who lies all the time, and prefers the US’s traditional arch enemy Russia to its traditional allies. The US is just a few threads away from becoming yet another elected dictatorship. One of those threads is the Mueller investigation, and we will see if any Republican ‘rebels’ who want to impeach Trump are made of sterner stuff than the Brexit rebel Conservative MPs.

The story of neoliberal overreach is in part about how centre-right politicians set in place or promoted causes or institutions that would allow for the ascendency of the hard-right and then eventually their own demise. In the US this stretches from repealing the fairness doctrine, which led to hard-right talk radio and then Fox News, to increasing the role of money in elections and finally allowing Trump to win the presidency. In the UK it involved promoting austerity and an immigration target that was bound to fail, both of which directly led to Brexit.

Once these conditions have been set in place to win votes or shrink the state, there seem to be two stages in the process through which the centre-right concede power to the hard-right. The first stage is a belief that the centre-right are still in control when clearly they are not, or a blind optimism that the hard-right can be easily bought off. In the UK that is the stage where Cameron gave in to UKIP and newspaper pressure and agreed to a referendum on EU membrship. The centre-right make concessions to the hard-right to preserve party unity.

The second stage is where the hard-right have control, and play on this centre-right belief in party unity to prevent the centre-right from rocking the boat. [1] We saw this in the US under Obama when the Republicans scorned all the President’s overtures for bipartisanship. In the UK we are seeing it right now in how easily most Remain voting Conservative MPs are happy to go along with the current farce, and how easily the small band of rebels can be persuaded to cave.

The latter is due in part to our equivalent of Fox News conducting a hate campaign against these rebels. There is nothing subtle about this: try to vote against the government to prevent a national disaster and those big four right wing newspapers will headline on saying you are going against the will of the people and even imply you are a traitor. Whipping up this kind of hatred is no joke when followers of the ultra-right have already murdered one MP and tried to murder another. Yet before you start feeling some sympathy for the rebels subject to these newspapers attacks, remember these same centre-right Conservative MPs were quite happy to indulge the same papers by voting down Leveson 2.

It is also a result of the BBC increasingly shying away from anything that could be construed as critical of the government, and dumbing down political discussion. The rabid right wing press pretend that any form of dissent from the government’s chosen path of implementing Brexit is betraying the will of the people, confusing the government with the people just as authoritarian governments have always done, yet the BBC panders to the idea that these rebels are really trying to stop Brexit by constantly labelling the rebel MPs as Remainers.

As a result, Conservative MPs duly voted through substantial increases in executive power at the expense of parliament. There is now a grave danger that they will get played by the Brexiters. The Brexiters should by now know that any deal that can be done will be some form of soft Brexit, remaining in the Customs Union and Single Market for goods for sure. That is not the kind of divorce they wanted. They keep saying that the possibility of No Deal must be kept in play to increase our negotiating power, having conceded all our negotiating power by invoking Article 50 with no discussion and little plan. Perhaps the real reason is that they would not be at all unhappy that through their belligerence time for a deal disappears, and we get No Deal by default. Chris Grey calculates there are only 62 working days left to do a deal, and May is not even near the range of possible deals yet. If the Brexiters plan is to talk out a deal so we exit without one, it seems to be going very well.

For months I have been saying that No Deal would not happen because parliament would not let it happen. I still think it is unlikely, but as a result of the votes last week and the UK side in the Brexit negotiations going backwards since December I am much less confident than I was. The slide from a pluralist democracy to an elected dictatorship or a right wing plutocracy [2] is full of moments when sensible people say this could not possibly happen here.

[1] Contrast Conservatives voting on block to sweep aside the Lord’s amendments to the Labour rebellion over the EEA. Often the fact that Labour MPs have views for which they are quite prepared to vote against their leadership is seen as a political weakness, but what we are seeing right now is the Conservative desire for party unity as a colossal political weakness.
[2] Before anyone objects, of course this only applies to the UK on the single decision of Brexit, for now. But Brexit is perhaps the most important change in UK politics since the election of Margaret Thatcher, and the way this change has come about does show structural similarities to the transformation of the US Republican party that led to the election of Donald Trump.

Tuesday, 20 March 2018

Beliefs about Brexit


I have nothing to say on yesterday’s agreement that cannot be found in what Chris Grey or Ian Dunt writes. The difference in tone between the two seems to me to depend on different assessments of how far down the road the Irish border issue can be kicked. What I want to do instead is ask why public opinion seems oblivious to the failures of all those claims before the negotiations that ‘we hold all the cards’ compared to the reality that the UK has largely agreed to the terms set out by the EU.

I think as good a place to start as any is this poll result from ORB.


The view of the overwhelming majority of economists, and all the analysis from serious academics, the OBR, IMF, OECD, and now even the government, is that leaving the EU will involve significant economic costs. Yet despite all this the poll above shows as many people think we will be better off leaving as think we will be worse off. This is the kind of polling that should stop everyone in their tracks, much like the polls before the US election that said more people trusted Donald Trump than Hillary Clinton.

The result in this poll is all the more incredible because so far people are worse off as a result of Brexit. They are worse off because a depreciation immediately after the vote led to higher import prices that have not been matched by rising nominal wages. We have moved from the top to the bottom of the OECD growth league table. A belief that we will be better off has to involve Brexit in some way reversing what has already happened.

I can think of two classes of explanation for this apparent paradox. The first is that people are fully aware of what experts and the government thinks, but ignores this because they simply do not trust experts. Instead they fall back on simple ideas like there will be less immigrants after Brexit so they will be better off. Ideas that experts also say are wrong, but where experts are again ignored.

If that is the line you want to take, then it has a clear implication. The implication is never hold a referendum on anything. It is not normally a good idea to take decisions where you ignore all expertise.

There is however a second and much simpler explanation for the poll result shown above. I know about the view of the overwhelming majority of economists, the analysis from serious academics, the OBR, IMF, OECD and now even the government, and so do most people reading this blog or who read the Financial Times and a few other newspapers. But do people who pay far less attention to economics and politics know this? How would they know this?

They will know very little about it from reading the papers that campaigned so hard for Brexit in the first place. At best the information will be reported in a dismissive way with some reference to how economists always get things wrong. (Hence, by the way, a distrust of economists, because most of the media is either unable or unwilling to make the distinction between conditional and unconditional forecasts.) Against such reports will be a constant stream of comment and reporting extolling the imagined benefits of Brexit.

This propaganda could be countered by informed and informing reporting by broadcasters. Unfortunately, with the exception of Sky News, the standard of reporting by broadcasters on Brexit has been very poor. In particular the BBC treats Brexit like any other Westminster based issue, with an additional touch of nationalism. We hear a great deal from May, Fox, Johnson etc, with virtually no expert analysis of what the true state of negotiations are.

I’m not an expert on international trade, but because I read some of the now numerous people who write stuff on Brexit who are experts, or who have made themselves experts, I feel I am reasonably well informed. I have never seen the same level of expertise from the broadcast media. If I just listened to the BBC or read any newspapers bar two or three, I would know almost nothing about what was really going on in the negotiations.

Let me give a personal example. I missed the importance of the Irish border until September last year. I do not think I was unusual in this respect. I suspect I did so because I was influenced by the UK line that this issue was really a phase 2 problem, a line we heard over and over again on the MSM. What the MSM rarely did was ask what people in Irish Republic felt about the border, and hence why it got to be a first stage issue in the first place.

Once I realised its importance, I could see that the Irish border issue would have a fundamental influence on any final deal, and so could many other experts. But the BBC in particular seems unable to incorporate expert opinion, either directly or indirectly, into its coverage of the negotiations, in much the same way as they failed to do so before the referendum. As a result, most voters are left with bland and uninformative coverage. I see the same Brexiter MPs over and over again being interviewed by the broadcast media, but I cannot recall any occasion in which they have been reminded of the false claims they made before the vote.

The idea that the media can heavily influence popular opinion is not new. It has been widely acknowledged that people think crime is always rising, and overestimate the number of immigrants in the UK, the extent of benefit fraud and so on. These mistakes are almost always in the direction you would expect if people were far too influenced by newspaper headlines. We also now have published papers that demonstrate that the media influences rather than just reflects voters views. (See here for Fox News, and here for the UK press. Here is another study that also finds the Murdoch switch to Labour had large effects. Here is a study about how the media influenced attitudes to welfare after the 2011 riots.)

I also think this is not the first time in recent memory that the media has failed to accurately report what was going on and what experts thought. Before the 2015 election the media accepted the idea that getting the budget deficit down was the most important goal of macroeconomic policy, and that the economic fundamentals were strong. Few experts would agree with the former, and the latter was simply false. What I call mediamacro swung the election for the Conservatives.

The UK government wants a Brexit that will involve the UK not just ending free movement, but leaving the Single Market for goods and services and leaving any customs union with the EU. It is a form of Brexit not dictated by the referendum result but by the wishes of the Brexiters in the Conservative party. The only people who can stop this happening are other Conservative MPs, but many have said that these MPs will only be able to defy their government if public opinion swings against Brexit.

But that is not going to happen. So far the shift in the public’s view of Brexit has been small, and is largely down to previous don’t knows making up their mind. This is not surprising if as many people think they will be better off after Brexit as think the opposite. The most obvious explanation for this is that people remain unaware of the overwhelming expert opinion that they will continue to become worse off after Brexit. That in turn represents another victory for right wing press propaganda, and another critical failure from most of our broadcast media.





Saturday, 9 December 2017

First Stage Reality and Brexiters

Now for the hard part, pronounced various media commentators after the first stage Brexit deal had been signed. The chances of No Deal have diminished, said others. It is strange watching the MSM sometimes. On political issues that involve expertise, like austerity and Brexit, it is generally an expert free zone. With Brexit you have to turn to the Financial Times and Economist who understand what is really going on, or other knowledgeable bloggers like Chris Grey. [1]

It is not difficult to discover how things really work in these strange days. You just need to see what the important facts are, and continue to apply them relentlessly despite what politicians say. The latest important fact that tells you all you need to know is that a Single Market and Customs Union needs a border to, as Martin Sandbu sets out, not just collect tariffs but also check compliance with rules of origin and standards. Therefore to avoid a border in Ireland, you need Northern Ireland to comply with all the tariffs, standards and regulations of the Single Market. The UK has now agreed, as I thought it would, that this must also apply to the UK as a whole.

This logic leads you inevitably to the conclusion that, after Brexit, the UK will to the first approximation [2] continue to obey all the rules of the Single Market and Customs Union. So it will be as if we are still in the EU, with the only difference being that we no longer have any say on what those rules are. Fintan O’Toole quotes Sherlock Holmes: eliminate the impossible and whatever remains, however improbable, must be the solution.

But, you may respond, all the UK have signed up to is that this is a default position, if they fail to find a technological fix for the border, or if they fail to conclude a trade agreement with the EU in stage 2, and what does alignment mean anyway? Here you need a second fact: there are no technological fixes that remove the need for some form of hard border. We also know two things from this first stage agreement: the UK desperately want a trade agreement with the EU and the EU will not allow any agreement that implies a hard border in Ireland. It therefore logically follows that, to a first approximation, any trade agreement will have to involve the UK staying in the Single Market and Customs Union.

Why then are the Brexiters not up in arms? It is partly because the agreement plays on their lack of realism, as I suggested two days ago. The UK government and Brexiters still pretend that they can, through some magical means, avoid a hard border. Given that belief, how can they object to this fall back position? And that will be the line that the UK takes from now into the indefinite future, and because the broadcast media mainly talks to politicians rather than experts that is the line the media will take as well, with some honorable exceptions like those noted above. In may come apart as the cabinet finally discusses what the trade deal might look like, which is why the threat of No Deal has not gone away. Or Brexiters like Gove may decide instead that as May will not be making these trade agreements, it is politically wiser to maintain unity and instead try to win the ultimate prize from Conservative party members.

Why is it important that this deceit continues? Because if everyone was honest, and respected the reality of the border issue, people would rightly ask whether our final destination (obeying the rules but with no say on the rules) is worth having. They would note that being to all intents and purposes part of the Customs Union means Mr. Fox cannot make new trade agreements. People might start asking MPs why are we doing this, and the line that we have to do this because the people voted for it would sound increasingly dumb.

Unless something amazing happens and the MSM do not allow this deceit to continue, we will end up with the softest of soft Brexits. If that is where the UK stays [3] there is a huge irony about all this. The Brexiters’ dream was to rid the UK of the shackles of the EU so it could become great again, but it is a legacy of empire that has brought this dream to an end. All the stuff about bringing back the glory of a once great trading nation will not happen. Instead we will still be acting under the rules of the EU, but because we are not part of it the UK will be largely ignored on the world stage. A rather large country, which nevertheless gets other countries (like Ireland!) to set its trade and associated rules for it, and which it is therefore not worth bothering with in the international arena. A Britain that can no longer pretend to be a world power, not as a result of the actions of some left wing government, but because of the delusions of Brexiters.

[1] To be fair to the broadcast media (as I always am), yesterday I did see interviews with ministers which raised the issue of what the implications of the border agreement are. But for whatever reason these interviewers allowed those ministers to bat away the question with waffle, and I strongly suspect the point will be forgotten in the days ahead.

[2] What do I mean by first approximation? For a start, we will not be part of the Customs Union and Single Market, but instead be part of bespoke versions of both. That may allow wiggle room, which in turn might just possibly allow something that could be called a deal on free movement, although this will probably just mean Free Movement to a first approximation. So a bit like Norway or Switzerland, but with rather less room for maneuver than those countries because both have borders with the EU. For more details see here.

[3] It will not be where it stays. First, there is the question of who May’s successor will be, and what they will do. If a soft Brexit goes ahead, the Brexiters will choose the right time (for them) to cry betrayal. It will only be a matter of time before they make a new attack, arguing that the UK should strike out for true independence. As I argue here, bigger things than just one failure have to happen before the UK rids itself of this particularly British form of plutocracy.