Winner of the New Statesman SPERI Prize in Political Economy 2016


Showing posts with label Labour Party. Show all posts
Showing posts with label Labour Party. Show all posts

Friday, 19 July 2019

Reaction to “There is only one alternative to Prime Minister Boris Johnson”


I anticipated that my last post would not be popular in many circles. I want to respond to some of the common themes from the responses in this post, but there was one reaction I was not expecting. First some background. Since the beginning of the year I have had an arrangement with the online edition of the New Statesman (NS) that my Tuesday post should be simultaneously published on my blog and in the NS. The arrangement was working well.

My last post was published by the New Statesman as usual. And then sometime later it was unpublished. The line my post took was not one the NS wanted to carry. I do not know the details of what happened but I can guess. The post was hardly extolling the virtues of Corbyn as Labour leader, but it suggested any attempt to get rid of him was both futile and would increase the chances of Johnson winning the next election. I don’t think that message was welcome.

Of course any publication has a right to chose what it publishes, and I have no quarrel with that. What was unfortunate was the implicit confirmation of the main concern in the post, which was that the non-partisan and even left leaning media with the support of the Labour centre really believes they can depose Corbyn using the issue of antisemitism. I gave in the post the reasons why I think Corbyn is unlikely to depart as a result of this pressure and any challenge is unlikely to succeed, and none of the responses to my post questioned this logic.

Among comments on twitter, the most offensive was to suggest my post was itself a product of antisemitism, along the lines that I didn’t care about Jews. By implication anyone voting Labour in the future is also antisemetic. The most moderate remark I can make about this kind of comment is that it gives the drive to remove antisemitism a bad name. The implication that you are antisemitic if you support a party accused of badly handling internal cases of antisemitism is an extension of a far more frequent argument: the idea that it was not virtuous to vote for Labour.

A common response was that it was morally wrong to support a racist party or party leadership. Of course Labour is not a racist party and I doubt very much that its leadership are antisemitic, but lets put that to one side until later. The problem with this argument is that you can make lots of other similar arguments. Is it morally right for someone to support a party that was part of a government that caused untold misery through austerity, and where neither of the possible future leaders have apologised for supporting austerity? Is it morally right to support politicians that voted for the hostile environment policy?

Voting should be about weighing the pros and cons of each party’s stance on different issues, and in a FPTP system it means also thinking about whether voting for some parties in your constituency is a wasted vote. It is very hard to rationalise voting or not voting on the basis of I couldn't possibly vote for a party that showed any sign of racism. Would you really not vote if a party that failed to deal with antisemitism adequately even if it meant that another party whose leader actually uses racist speech and has voted for racist policies would stay in power? This is not a trolley problem: it is part of being a good citizen to make this choice.

Another comment I received is that there are no degrees of racism. I think this is nonsense. Once again it is useful to compare the two main parties. Both leaders are accused of being racist. With Corbyn the evidence amounts to things like not recognising antisemitic tropes in a painting, not mentioning someones antisemitism in an introduction to a book, or being associated with antisemitic people as part of his support for statehood for Palestine. With Johnson we have someone who has compared Muslim women in a certain dress to letterboxes (and those are not his only racist slurs), and who has supported a racist policy: a hostile environment that saw the deportation of members of the Windrush generation. Are these really equivalent?

Or let us look at the two parties. The Labour party has been accused at operating an inefficient disciplinary process for antisemitism or worse, of leadership interference in this process. The Conservative party routinely lets those exposed of making racist comments back in after a few months of ‘re-education’, and has just voted for a leader who makes racist remarks because most members show racist tendencies (to put it too mildly). Are these really equivalent?

Going beyond the UK, is telling non-white Congresswomen born in America to go back home to the crime infested countries they came from the same as anything Corbyn has done? The thing about the antisemitism in the Labour party is it involves no policy against Jewish people and it involves no language by members of the Labour leadership team against Jewish people. Some Labour party members are antisemitic, but there is no evidence that this number is unusually high compared to the population at large. When people try to equate antisemitism within the Labour party to racism in the Tory party they ignore these points.

The most depressing aspect in comments on my post was the number of people who just talked about antisemitism within Labour as if it was the same as racism within the Conservative party. This lacks the key ingredient that is also lacking in the media’s response, and that is a sense of perspective. One of the cheap remarks made in comments was that I was equating antisemitism within Labour to Clinton's email server. This was obvious nonsense, as I was clearly using the Clinton case to show how the media as a whole can lack a sense of perspective, and when it does that it can have terrible consequences.

Perhaps the most common response in comments was that a choice between Labour and the Tories could be avoided by voting Liberal Democratic. Despite the arguments in my post, I was told that the era of two party politics was over. Let me make one final point. The disastrous events that we have recently seen in the UK started in 2010, with in particular an austerity government during the worst recession since WWII. For more than half of the 9 years since 2010 the Liberal Democrats were in power, and the two candidates for leader were both ministers in the Coalition government. Their actions and voting records speak for themselves. As I have said in the past, I think the UK needs radical change to ensure nothing like the disaster of the last 9 years happens again. Only Labour at present provides that. Simply returning things to how they were before 2010 allows what happened from 2010 to happen all over again.











Friday, 22 February 2019

The new party: lessons the Labour leadership and its supporters failed to learn


I know it is a cliché but too many supporters of the Labour leadership, and perhaps the leadership itself, seem to have forgotten it. Labour is a broad church. It has to be a broad church if it is to be successful. It has to be a broad church when led from the right because otherwise the leadership drifts too easily into the centre or worse. Labour needs its left to stay honest to its principles. If Labour is led from the left it needs to be a broad church to win elections and avoid policies based on ideology rather than evidence. 

In other times Labour led from the left would need to be a broad church because otherwise the Conservatives would go for the centre ground and deprive Labour of the votes to win. Labour today does not face that problem, because the Conservative party is more right wing than at any time since WWII. Labour also had the great advantage that the only centre party around, the Liberal Democrats, are still struggling to shake off the damage their period in power did to their appeal. So the position Labour had was extremely favourable to a left led Labour party, and it has to be favourable because the media will always be hostile to it.

It is also essential that Labour win the next election on a radical economic and societal programme of the type the leadership have put forward. If we continue with a deficit obsessed politics we will see standards of living in the UK continue to fall behind other countries, and we will not see the radical industrial policy that is required to revitalise some of the poorest regions in Western Europe. Nor will we see a genuine Green New Deal that will help us mitigate climate change if Labour do not form the next government. And without an outright Labour victory we will continue with a right wing press and a cowed BBC that has already given us Brexit and will continue to have a pernicious influence on the UK.

The one threat to the advantageous position Labour had is the formation of a new centre party made up in most part of defections by Labour MPs. But even that would not be fatal to a Labour election victory if this new party appealed more to disgruntled Tory than Labour voters. So the task the Labour leadership had was to ensure that the appeal of any new party to Labour voters was minimised.

With its Brexit policy the leadership, and more particularly the cabal around Corbyn himself, failed to do this job. What defines the new Independent group is their position on Brexit. I am fed up with supporters of the Labour leadership telling me that Remainers cannot be a strong political force because the LibDem vote is so low, when the same people take every opportunity to remind the LibDems of their record in government. The LibDems are still toxic for that reason, but a new anti-Brexit party is not, which is a big problem for Labour when the majority of the population now favour Remain to Leave.

As I have written before, Labour’s stance on Brexit is a gift to the new party. It gives them a large pool of Remainers, many of whom were Labour voters in 2017, to fish in for support. This is but one of the many reasons why looking at the SDP for lessons is misleading. As Brexit is going to be a defining issue over the next four years, the new party could become a home for those who see Remaining or rejoining as their most important political priority. That is why the new party is a serious threat to Labour.

For Corbyn to pledge that members will make party policy, and then ignore the view of the overwhelming majority on the most critical issue of the day, just reeks of hypocrisy. From the day the referendum was lost the signals he has sent have been clear. Owen Smith was sacked for suggesting a People’s Vote, yet nothing happens to those who vote against extending the Article 50 deadline. The final paragraph of a letter to the PM drafted by Starmer mentioning a People’s Vote gets left off ‘by mistake’. If Corbyn did not want to send out the message that he does not want a People’s Vote then he and his team are extraordinarily inept, and I do not think they are. *** The triangulation strategy, which was smart before the election of 2017, has now become an existential threat to Labour winning the next election. 

The Labour leadership have also failed to kill the issue of antisemitism within Labour. Much of this is because the media is hopelessly biased on the issue, and remain almost silent on the at least as important problem of Islamophobia in the Tory party. However given that this was always going to be the case, the leadership have not done enough to shake the charge of institutional antisemitism. Not adopting the IHRA definition in full was a huge tactical mistake. The party has done a lot to improve how it works, but disciplinary procedures seem to remain mired in controversy and delay, and there is more that the leadership could do. 

Which brings me inevitably to the attitude of too many supporters of the leadership. Because, for obvious reasons, Labour are so vulnerable on the issue of antisemitism, you do not attack those making accusations. It makes it appear you have something to hide. Unfortunately 30% of the membership cannot see that antisemitism is a real issue for the party and think it is entirely a media scam, which means they fail to tread carefully. At its worst this can amount to institutional antisemitism.

Being a broad church means you have different opinions within that church, and those differences are respected. Yet too many leadership supporters regard criticism as treachery, and find it too easy to tell critics they should not be in the party. Indeed some are right now encouraging good Labour MPs to leave. They seem obsessed by criticising the previous Labour government, using Blairite as the ultimate form of abuse, and trying to purify the party in their own image.

Just as the leadership were always going to be vulnerable to charges of antisemitism, they were also going to be charged with being a hangover from the early 80s Labour left. Yet rather than do all they can to distance themselves with this political failure, they seem to regard it with a kind of romantic attitude. How else can you explain letting Derek Hatton back into the party. It sometimes seems as if the party’s distaste for spin means they do not think about how the party appears to those outside it’s band of loyalists at all.

Who knows what will happen in UK politics now. The new group could gradually fade away as voters get tired of Brexit or if there is a quick election, or it could completely change the shape of UK politics. The most likely single outcome, once you factor in media bias as you have to, is that they stop Labour forming the next government. If you think this post sounds unusually angry that is why. 

It is crucial that winners as well as losers learn the lessons of past conflicts, and the Labour leadership and its supporters did not learn the lessons of the vote of no confidence. Corbyn is not a natural manager of a large team, and that makes it all the more important that Labour policies keep the majority of MPs and members on board. The current Brexit strategy fails to do that. The smartest move that Corbyn could make right now would be to give Keir Starmer back the driving seat on Brexit, but I fear Corbyn is just too keen on Brexit happening to do that. As a result, Labour have given the new party the opportunity to eat into Labour's support. It is almost certainly Corbyn's biggest mistake since he became Labour leader.

*** Postscript (23/02/19) I have had a lot of responses saying that he is just following conference policy. It is the perception of voters that matter here, but on that particular issue see this letter from the party members who helped draft that policy.   







Saturday, 18 August 2018

Why an anti-Corbyn party is a terrible idea


Within a few months of Corbyn’s election, I wrote about what I called the anti-Corbynistas: a smallish group of Labour MPs and many in the media who were happy to attack Corbyn for the sole purpose of bringing him down. I wanted to make the simple point that their efforts were counterproductive. If, as they kept insisting, Corbyn’s chances of winning any election were zero, it was better that members find that out without their efforts. If they carried on, most members would put down any negative performance to the activities of the anti-Corbynistas.

In fact I understated my case. When Labour MPs voted no confidence in Corbyn after the 2016 referendum, most members read it as part of a plot not only to defeat Corbyn but also to take power away from themselves. And they didn’t want power for powers sake, but just to stop the steady drift to the right among their party leaders with no apparent electoral benefit. I tried as hard as I could to suggest that many MPs had voted no confidence out of frustration at Corbyn’s administrative incompetence and the failure of his pro-Remain campaign, but I have no doubt that that the activities of the anti-Corbynistas meant many members just didn’t get beyond the idea of a power grab by MPs. To put it bluntly, the anti-Corbynistas helped ensure Corbyn’s victory against Owen Smith.

After that the anti-Corbynistas went quiet. Labour fought a campaign where divisions within Labour were not the number one topic, and they produced a spectacular swing to Labour in the three weeks before the election. The argument that Corbyn would always be hopeless at the polls died in those three weeks.

A year later, and it seems that Labour’s real difficulties with antisemitic members has led to the return of the anti-Corbynistas. Here is Chuka Umunna in The Independent. The aim it seems is no longer to persuade Labour party members to give up on Corbyn because he cannot win. Instead the anti-Corbynistas have given up on Labour party members. In the short term that is surely right. Most of the membership do not care that much who he has been ‘linked to’ in the past: the MSM has cried wolf too many times. They know that Corbyn has always stood up for Palestinians and they respect him for it. The more he is attacked in the MSM the more it seems he provides a genuine challenge to the establishment, and that is exactly what members want.

However the leap the anti-Corbynistas then make is far more tenuous. Because they give up on Labour party members now, they may give up on the Labour party forever, and form a new political party. The best time to do that is now, so the argument might go, because Corbyn is under pressure over his Brexit stance and because of the antisemitism row. That logic is no better, and is probably far worse, than their logic after Corbyn was elected. It only makes sense if you think a Corbyn led government of centre left MPs is worse than a government that gave us austerity and Brexit.

Of course it is possible that a new centre party could sweep all before it. But our FPTP system makes it very difficult for new parties to break through in terms of winning seats. UKIP is an obvious example. The most successful new party of recent times is the SDP, and it ultimately failed. If a new party is to succeed, it has to win between 30% and 40% of the popular vote. Yet in our most recent general election in 2017 the third party vote was squeezed, and the two main parties won over 82% of the popular vote between them. Everyone points to Macron, but he won 24% of votes in the first round. That is not enough.

Where will the votes for a new centre party come from? Thinking in simple left right terms, the steady move to the right in the Conservative party, particularly over Brexit, has left a gap which a more right wing version of Miliband’s Labour could fill, although policies like a Mansion tax or higher corporation tax would probably have to go. Equally those voting for Miliband’s Labour who thought it was a tad left wing could be attracted to a new centre party, as could those Remainers who will not forgive Corbyn for accepting the referendum vote.

However if we think in two dimensional terms, with a social conservative/liberal axis, the position looks less favourable. Right wing social conservatives will stick to the Conservatives. Left wing liberals will mostly stick with Labour. So the new party needs to be in the centre on the second social conservative/liberal axis as well as the left/right axis. There are some basic problems with trying to capture both these groups. Most importantly, it is not very clear how being tough on immigration squares with arguing for the softest of Brexits.

So a new party will almost surely fail in breaking through, but I’m not sure that is the only objective. The other objective is to stop Labour winning the next election. There is a strange irony here. A group of people who were arguing with absolute conviction that Corbyn could not possibly win are now arguing that there is a real danger that he will win and therefore must be stopped, which means more Tory government Even if that is not an objective it could well be the effect.

This fills me with anger and dread. Anger that people can convince themselves that what would be in legislative terms a centre-left government can be worse that a party that had inflicted more damage on the UK in the last eight years than any since WWII. And dread at a Conservative victory in 2022 because a new party takes away crucial Labour votes. Nothing suggests the Conservative party has stopped moving in a rightward direction. Alleged Brexit betrayal and a resurgence of UKIP will help ensure that it continues in that direction. If current betting is right, the next Tory party leaders will either be someone whose inspiration is Ayn Rand, or someone who wants to take us back to the 18th century, or a clown who is happy to encourage Islamophobia..

I understand why some within Labour dislike Corbyn, and why they write lists of all the inexcusable (in their mind) things he had done in the past. I know some imagine that he alone is keeping Brexit going. I can see why, because of the rhetoric of some on the left, they can imagine that most of the 500,000 members have become cult followers who will never listen to reason. But is there evidence for that last assumption? Many Corbyn supporters and Momentum members are trying to get the party to change its policy in favour of a referendum on the final deal. This is not a party that will support Corbyn whatever he does: Labour has never been like that and never will be.

To me the anti-Corbynistas look much like those on the left in US general elections who didn’t vote, or voted for a third party, because they thought both candidates were equally bad. They focus so much on why the Democratic candidate is not ideal, they fail to see that they are much closer to their own position that the Republican. Corbyn may well do some things as PM that you do not like, but he will not stoke immigrant antagonism which fuels racism of all kinds. He will not talk about looking up at the closed blinds of their next-door neighbour sleeping off a life on benefits. He will not be content to see foodbank use explode after people get sanctioned because, for example, they have a heart attack. If you are content for those things to continue to happen, then creating a new party is a good way of ensuring they do.



Thursday, 21 December 2017

Voting Labour isn’t going to turn the UK into Venezuela

but mainstream economists should make sure they are getting a hearing

It is tempting to laugh at the rhetoric of Conservative politicians or journalists when contemplating a possible future Labour government. As John Elledge writes, it isn’t long before Stalin or Trotsky or Venezuela is mentioned. As he notes, this is not a terribly clever tactic, particularly as many of the measures proposed by Labour are (by design) pretty popular. As Stephen Bush points out, the problem for the Conservatives is not that ‘young people’ have not learnt about the evils of communist regimes, but that this group are not impressed by Brexit or their wages and for many buying a house is something their parents generation did.

Yet this kind of hyperbole is not confined to politicians or journalists on the right. When John McDonnell, Labour’s shadow Chancellor, said at their party conference that they were ‘war-gaming’ for eventualities if they gained office like a run on sterling, I thought this showed mild paranoia. I was wrong. After I wrote that sterling was far more likely to rise at the prospect of a Labour government (standard macro: more fiscal, higher rates imply stronger currency), Buttonwood of the Economist wrote that there were at least five reasons why sterling might collapse, most of which involve some form of capital flight.

Although Buttonwood was careful to base analysis on measures that Labour proposed in 2017, I’m sure I was not imagining a subtext about what else could hard left politicians do. You can read much the same from some on the centre or soft left, who have learnt through experience to be wary of the hard left. Nick Cohen knows better than to call Labour’s new mass membership all militant entryists, but instead he says they are innocent (but should know better) lambs flocking towards wolves.

With language like this flying around, it is best to look for solid ground. In parliament Labour is a centre left party led by the hard left, to use popular labels. For that reason it would be impossible for it to pursue a hard left programme, and the leadership knows that. Contrast this with the current governing party: half soft, half hard right, with the latter having the upper hand because of the membership. The Conservative party’s ethos is such that the hard right have imposed a ruinous policy on our country without challenge, which actually did produce a collapse in sterling. Fortunately many Labour MPs have less loyalty and perhaps stronger principles, and would not allow anything similar if they were in power. As a result, I find pandering myths about Venezuela dishonest to be frank. If you want to fret about deselection, I suggest you talk to Nadine Dorries.

As far as City scare stories are concerned, as I indicated earlier and Ben Chu confirms, you will always be able to find those predicting doom. One of the refreshing things about this Labour leadership is that they do not cower defensively at such attacks, but come out fighting. As Corbyn’s video could have added, it was City economists who told us that austerity was necessary because otherwise there would be a flight from UK government debt. They were horribly wrong then, as interest rates on debt fell, and they are likely to be wrong again with new stories about capital flight under Corbyn.

While talk of Venezuela is ludicrous, there is a more interesting question about where the influences on future Labour policy are coming from. To set the scene, there was a recent prank outside the LSE designed to suggest heterodox economists were the Luther to economic mainstream Catholicism, and this was followed by a column from Larry Elliott in the Guardian. Now there are plenty of things to criticise about economics, but these are not them. As Frances Coppola recounts, the ‘economics reformation’ document is embarrassingly bad. If you want to read a short but to the point and well written response, see here.

So, in case you thought otherwise, mainstream economists do not spend their time attacking any form of market intervention, but instead try to design efficient market intervention. As I have argued many times, most mainstream macroeconomists did not endorse austerity, for the simple reason that textbooks and state of the art models suggest it would be a very bad idea. But there are some (not all) heterodox economists who would like you to believe otherwise.

What has this got to do with a future Labour government? Christine Berry presents a comprehensive account of who is shaping future Labour policy. It contains the following paragraph.
“John McDonnell’s Council of Economic Advisors, set up during the first days of the leadership, was a valiant effort to give the party’s economic policy some heavyweight academic backing. But many of its members were not natural Corbyn supporters, and ran alarmed from the public ridicule heaped on the leadership in the early days – resulting in the Council being largely disbanded. Academic input now seems to be ad hoc rather than systematised.”

That is not how it happened. It is true that some of us had to suffer some public ridicule when we joined, but that just reflected badly on those doing the ridiculing. The breakup of the Council was inevitable after the EU referendum. It is hard for any group of serious economists to publicly advise in such a forum any political party that appears to support a Brexit policy that is doing (see Chris Giles here) so much damage and could do much more.

The understandable wish of many heterodox economists to have an influence on Labour policy does mean there is a potential competition for influence. Will Labour policy be based on policies derived from mainstream analysis, or those favoured by some heterodox economists? It would be wrong to exaggerate this competition: most mainstream economists agree with most heterodox economists about austerity, for example. But there are some clear differences. (In some ways you see something similar on the right, where City economists compete with mainstream economists for influence on Conservative party policy, which is one reason Conservative macroeconomic policy can produce major disasters.)

Ann Pettifor has an article about why business would do well under Labour, which invokes some of the points made in an earlier Financial Times piece. Once you discount the scare stories, I agree with Ann that the economy and therefore businesses will do much better under Labour than under the Conservatives. But her article contains an interesting remark which I think tells us something about the current leadership. Ann’s says
“Here I must acknowledge a disagreement with Professor Simon Wren-Lewis, of Oxford University, who advised Labour to adopt a fiscal rule that once again prioritises monetary policy …”

Ann follows the heterodox MMT school that favours using fiscal rather than monetary policy to stabilise output and inflation. Of course both Ann and I were on Labour’s Economic Advisory Council, and so it is obvious that there was a similar discussion in this group.

The fact that McDonnell chose a more conventional but still innovative approach (which happened to be the one I put forward), and has also stressed the importance of central bank independence, shows us two things: he has a distinctly conservative streak, and he wants Labour not only to win but to be successful in economic terms. But while McDonnell may have opted for a mainstream approach on monetary and fiscal policy, there is still plenty to play for in other areas. I am not suggesting that mainstream economists should always win when conflicts occur, but it is important for mainstream economists not to arrive late to these battlefields, or worse still wait for politicians to read their papers.











Wednesday, 1 November 2017

Links between austerity and immigration, and the power of information

This discussion by Roger Scully about why people in the Welsh Valleys voted Leave is depressing although not surprising. In essence it is immigration, bolstered by local stories of Polish people coming into communities and reducing wages. I doubt if quoting econometric studies about how little immigration influences wages would make much difference to these attitudes (although that is no excuse for people in authority who should know better ignoring these studies). I think it is attitudes like this, in places unused to immigration partly because work is not plentiful, that makes some politicians say that arguing in favour of immigration is ‘politically impossible’.

This is the first link between immigration and austerity I want to draw. The Labour party before 2015 had also decided that attacking austerity was politically impossible: ‘the argument had been lost’. Focus groups told them that people had become convinced that the government should tighten its belt because governments were just like households. The mistake here, as I wrote many times, was to assume attitudes were fixed rather than contextual. I was right: austerity is no longer a vote winner. [1]

Why might attitudes to immigration change? I strongly suspect that anti-immigration attitudes, along with suspicion about benefit claimants, become stronger in bad times. When real wages are rising it is difficult to fire people up with arguments that they would have risen even faster in the absence of immigration. But when real wages are falling, as they have been in the UK in an unprecedented way over the last decade, it is much easier to blame outsiders. Equally when public services deteriorate it is easy to blame newcomers.

It is wrong to think that this only happens among working class, left behind communities. Catalonia is a relatively rich part of Spain, and there has always been resentment about this area ‘subsidising’ the rest of the country. But it is very noticeable how support for pro-independence parties increased sharply as Spain turned to austerity, although that could also be a reaction to corruption scandals.

Here is the second link between immigration attitudes and austerity. Austerity has contributed to the slow growth in real wages and is the main cause of deteriorating public services, but often outsiders are easier to blame.

This is particularly true when it is in the interests of the governing political party and its supporters in the press to deflect criticism of austerity by pretending immigration is the real cause of people's woes. This is the third link between austerity and immigration, and it is one deliberately created and encouraged by right wing political parties. In this way Brexit has its own self-reinforcing dynamic. People vote for it because of immigration, its prospect leads to falling real wages as sterling falls and the economy falters, which adds to bad times and anti-immigrant attitudes.

If all this seems very pessimistic, it shouldn’t be. While the right will almost certainly continue to play the anti-immigration card in the short term, because they have few other cards to play, they can be opposed by a left that makes the case for immigration. As just as views on austerity have clearly changed, so can views on immigration. particularly once hard times come to an end.

However it is a mistake to imagine it is all about economics, or even ‘culture’. One of the unfortunate consequences of the culture vs economics debate over populism is the implication that one way or another views are deterministic, and the only issue is what kind of determinism. The reason I go on about the media so much is that information matters a lot too. Although people may be anti-immigration because they have xenophobic tendencies which are reinforced when times are bad, they can also be anti-immigration because they have poor information, or worse still have been fed deliberately misleading facts.

In my intray of studies to write about for some time has been this paper by Alexis Grigorieff, Christopher Roth and Diego Ubfal. (Sam Bowman reminded me it was there from this piece.) It is well known that people tend to overestimate the number of immigrants in their country. This international experiment showed that when people were given the correct information, a significant number changed their views. What is more, this change of view was permanent rather than temporary. Here is a VoxEU post about an experiment from Japan pointing in the same direction.

As well as emphasising simple information like this, politicians should expose the kind of tricks people promoting tougher controls on immigration play. The public tends to be receptive to the idea that it is beneficial for the economy to have immigrants with important skills, so they switch to calling for controls on low paid, low skilled workers. As Jonathan Portes demonstrates, that in practice can involve plenty of pretty skilled workers. The trick for pro-immigration politicians is to ask which occupations do we want to exclude: nurses, care workers, construction workers, primary school teachers, chefs? With UK unemployment relatively low, there are not many jobs where employers are not complaining of shortages.

Of course most people want to stop immigrants coming here and claiming unemployment benefit. This is why newspapers keep playing the trick of talking about the large number of migrants ‘who are not employed’, conveniently forgetting to mention that this includes people like mothers looking after children. In reality unemployment among EU immigrants is below that among the native population. In addition, we can already deport EU immigrants that remain unemployed under EU law if the government could be bothered to do so.

For politicians who do want to start making the case for immigration, the place I would start is public services. Few economists would dispute that immigrants pay more in tax than they take out in using public services. Yet most of the public believe the opposite. In this post entitled ‘Is Austerity to blame for Brexit’ I show a poll where the biggest reason people give for EU immigration being bad is its impact on the NHS. Getting the true information out there will have a big effect. Just as public attitudes to austerity can change, so can they over immigration, but only if politicians on the left start getting the facts out there.

[1] To be fair, whether I would have been right in 2014/15 if Labour had taken a clear anti-austerity line we do not know.   

Tuesday, 27 June 2017

When capturing the middle ground works or fails

In 2015 Labour went for austerity-lite compared to Osborne’s full on austerity. It failed. Yet in 2017 Labour went for Brexit-lite, and it worked. Why does capturing the middle ground (often called triangulation) sometimes work and sometimes fail?

The theory behind why it should work is straightforward. Suppose you can grade an issue from 1 to 10, and we have a two party system: you can vote Labour or Conservative. In the case of Brexit, 1 would be staying in the EU and joining the Euro, and 10 would be No Deal. Now suppose voters are evenly distributed along this spectrum of possibilities: 10% want No Deal (10), 10% want a deal where we leave with minimal trade deals with the EU (9) and so on. An even distribution means 50% of the population want options between 1 and 5, and 50% want options between 6 and 10. Suppose the Conservatives go for option 8, which in this case is a fairly hard Brexit. Suppose Labour actually believe in option 3. What option should they campaign for in an election?

If all voters are well informed and are certain to vote, and there are no third parties, the answer is to go for the middle ground. If they campaigned for 3, they would capture only 50% of voters (those who prefer options 1 to 5), and the Conservatives would win those preferring 6 to 10. But if they campaigned for option 7, they would capture 70% of the vote. Indeed those voters who understood triangulation might have reasoned that although Labour were campaigning for 7, they were only doing that to appease some of their traditional core voters, and if elected they would actually go for a more EU friendly option.

You could read Labour’s position on Brexit in GE2017 as being very close to the Conservatives. But the language that stressed the importance of the economy allowed those who prefered options 1 to 7 to think Labour would be better than the Conservatives. Labour did indeed appear to go for something like option 7 in GE2017, and it seems to have worked: the swing to Labour was higher in areas that voted to Remain (their did not alienate voters who wanted options 2 or 3), but they captured some Leave voters as well. Whether that Labour positioning was based on triangulation or did actually reflect the leadership's true beliefs I honestly do not know.

Compare this to the 2015 election and austerity, where option 1 is wanting fiscal stimulus and more public investment because interest rates were stuck close to their lower bound, and 10 was an even sharper austerity than George Osborne was proposing. Instead he proposed option 8, and Labour went for something more moderate: on paper maybe 6, but they kept quiet about the difference so maybe in practice 7. Labour’s positioning is generally thought to have failed. Not only did they lose the election, but afterwards an ‘outsider’ became party leader on a platform that was clearly anti-austerity.

So why did triangulation work with Brexit in 2017 but fail with austerity in 2015? There are many ways of changing this very simple model to resolve this puzzle. My current favourite is as follows. What is missing from the linear scale of options outlined above is any account of the framework by which voters judge competence, and the option of not voting. In 2015 the dominant narrative was the one set out by the Conservatives: austerity was required because they were clearing up the mess left by Labour. By positioning themselves as austerity-lite Labour in effect did nothing to challenge that narrative. This had two consequences. First, those who took a strong anti-austerity line might have been tempted not to vote. Second, those in the middle did not go with Labour because Labour’s competence was questionable: they had caused the deficit problem in the first place.

So Labour’s positioning in 2015 to capture the middle ground failed. By not challenging the dominant narrative they appeared to accept their alleged past incompetence, and committed anti-austerity voters may have not turned up. In 2017 Labour openly challenged the austerity narrative. That meant they didn’t capture the middle ground, but they did not lose it either. (It should also be added that the middle ground on austerity has probably been shifting as the deficit itself falls.)

In 2017 with Brexit, there was no dominant narrative. As I have remarked before, the country is as divided as it was in the original vote. Labour had two options. It could oppose Brexit, and get the anti-Brexit vote. Or it could attempt to capture the middle ground by accepting Brexit but stressing that they would put the economy first. They, by preference or design, went with the second triangulation option and it seems to have worked.

Why were hard line Remainers not put off from voting Labour as anti-austerity voters may have been in 2015? In part I suspect because Brexit was not the only dominant issue. Labour campaigned on its anti-austerity manifesto, and for many Remain voters this was at least as important as Brexit. This meant that not voting was not an option. There may also have been the realisation that had Labour campaigned to Remain, this would have allowed the Conservatives to make the election a rerun of the Brexit vote, and the distribution of voters by constituency would mean the Conservatives would have won more seats even if the national vote had been evenly split. So in the case of Brexit, but not austerity, triangulation made sense.

Whether this is right or not I have no idea as I am very much an amateur on these issues. I only write about it here because I have not seen this comparison between the two elections made elsewhere. To the extent that Labour’s triangulation on Brexit was tactical, it means if (following May's failed election) the Conservatives move to a softer Brexit (from 8 to 7, say), it is important that Labour moves as well (from 7 to 6) to keep their Remain voters on side. 

Sunday, 4 June 2017

What does Labour's poll surge tell us

This isn’t another discussion about whether Labour can ‘win’: I’m far less qualified than others to make predictions of that kind. Nor is it the appropriate point to ask whether the Parliamentary Labour Party (and to a lesser extent myself) were wrong to think a Corbyn leadership would be disastrous: that discussion should be postponed for a week. Instead I want to ask what the Labour surge tells us about the way political information has been disseminated in the UK.

Sir David Butler says “the movement in the polls over this campaign is bigger than in any election I’ve covered since 1945”. (Some data here.) There are three obvious explanations for this surge. A terrible Conservative campaign which led many to think Theresa May had serious failings, a good Labour campaign which led many to think Jeremy Corbyn was not the ogre some said he was, and a Labour manifesto which contained popular policies. The point I want to make is that none of those developments should have come as a surprise. Yet to the parts of the electorate that created the surge they have been a surprise enough to change their vote.

I have talked about Theresa May in an earlier post, and none of the failings that the campaign has exposed were out of character. For example the ‘dementia tax’ U-turn was little different to the U-turn on self-employed tax. One thing that was clear about Jeremy Corbyn is that he runs good campaigns, and the idea that his appeal would be precisely limited to Labour party members was never likely to be true. (Whether it can extend to older Conservative voters we have yet to see.) Finally it was clear to me from the start of his leadership that he would try and adopt policies that were popular, robust and which most MPs could live with. Those that suggest the manifesto marks the end of UK capitalism have no credibility, as an examination of other European countries would demonstrate.

So if May’s weaknesses and Corbyn’s strengths were pretty clear before the campaign began, why have they come as a surprise to those involved in answering the questions of pollsters? The difference between an election campaign and everyday politics is that in a campaign politicians get more time to talk directly to the people. Outside of a campaign, politicians have to rely more on the media to get themselves and their policies across. So part of the story behind the surge is a failure of the media to accurately portray the abilities of politicians. [1]

I’m not talking on this occasion about the bias of the Tory press, because if this was all we would see swings to Labour during every election campaign, and that normally does not happen. More important I think is a failure of centrist and left leaning commentators, who almost all took one side in Labour’s internal divisions. The impression many gave was that Corbyn was hopeless and his policies would be laughed out of court. When neither turned out to be true, his and his party’s popularity improved dramatically

Unfortunately for Labour supporters there is a potential corollary. One idea I have seen put forward is that the polls may be exaggerating the surge because those being polled are paying more attention to the campaign than the average voter. All of the factors I identified above may be having proportionately more impact on voters being polled. (This might explain why many Labour MPs say they do not recognise this surge.) All the more reason to leave retrospectives on Corbyn's leadership until after the vote.

[1] Another factor is Brexit. May emerged as Conservative party leader in chaotic circumstances, without even having to win a contest among Conservative party members. In such chaos, she did not get the scrutiny she deserved. Politics since then has been mainly about Brexit, and while the Conservatives largely united behind May, Labour were more divided. The election was a reminder that other really important issues exist.



Saturday, 18 March 2017

Labour MPs are keeping Corbyn in power

If the title seems weird, remember that Corbyn only got onto the ballot in 2015 because some MPs felt it would be good for Labour party democracy if the left was represented. The current rule is that 15% of MPs and MEPs have to nominate you if you want to stand as Labour leader. That rule can preclude anyone from the left getting onto the ballot given the current composition of MPs and MEPs. Corbyn’s team want to turn 15% into 5%, but the great majority of MPs will do what they can to stop that happening.

It is this that is keeping Corbyn in power. A majority of Labour party members want to be able to vote for someone from the left in any future leadership election. If the 15% stands, that seems almost impossible. These members therefore want him to stay in power for as long as it takes to change the 15% rule. But Labour MPs have no intention of giving way on this, because they believe that if the rule is changed the left will have a stranglehold on the leadership, given the current composition and views of members. That is how Labour MPs are keeping Corbyn in power.

Corbyn’s popularity among the membership has changed significantly since the 2016 election. Then he won easily. Since then his popularity has decreased substantially, in part because of his poor handling of Brexit and also because it has become more difficult to claim that his unpopularity in the polls is due to Labour disunity. But MPs will not put up a challenger, because they suspect the challenger will fail. It will fail because by voting for someone who supports the 15% rule members believe they will be voting for their own disenfranchisement. This has become a power struggle between MPs and members, and Corbyn is becoming just a pawn in this game.

If that seems fanciful to you, just consider what happened last time round. In an emotional response to the referendum defeat, MPs passed a vote of no confidence in Corbyn. It was a challenge that was far too soon, giving the impression among members that Corbyn was only doing badly because Labour MPs were out to get him. The challenger that MPs chose for the subsequent election contest, Owen Smith, adopted virtually the same policy proposals as Corbyn/McDonnell, but crucially did not back changing the 15% rule. As a result, the members understandably responded by saying if you do not trust us, we do not trust you.

Owen Jones has called for a deal whereby Corbyn would step aside in return for someone from the left being on the ballot to replace him, but I cannot see MPs agreeing to that. Their strategy is to exhaust Corbyn and the membership, and preserve the 15% rule at all cost.

This is not so much a battle about policies as a battle about power. MPs intend to win it by keeping the 15% rule, and waiting for Corbyn to go through sheer exhaustion, or waiting for members to give up and hand power back to MPs. Labour members hope Corbyn can hang on long enough to change the 15% rule. Events like Brexit, Scottish independence and a general election just pass by, only mattering if they have implications for who achieves final victory in this war.

Now many in the political commentariat will assume that of course Labour members cannot be trusted, and so the strategy of Labour MPs is correct. Their pleas for Corbyn to ‘for pity’s sake go’ are just for show. But if that is also your view, consider two points.

The first point concerns MPs. The current decline of the Labour party as an effective opposition did not begin with Jeremy Corbyn. It began, as Larry Elliott clearly delineates, with the global financial crisis that happened on Labour’s watch. The unforced errors began when Ed Miliband, and the team around him, made the fatal mistake of not challenging the Tory narrative about the previous Labour government. That mistake meant that Labour was blamed for austerity, Labour were not trusted with the economy, and Miliband’s poll ratings just got steadily worse, even though many voters were experiencing an unprecedented decline in real earnings.

It was MPs reaction to the 2015 defeat, and a general belief among many of them that Labour had to move further to the right, which ensured a victory for the left in the subsequent leadership elections. Corbyn and McDonnell tried to create an opposition of all the talents (or at least those that were willing) and reach a consensus on policy. But at each turn they were met by a small group of MPs that constantly briefed against them, and other MPs that did nothing to stop this. Anyone with a clear head could see this strategy by rebel MPs was totally unproductive: Corbyn had to be seen to fail on his own account.

The most recent misjudgement by MPs was over Brexit. Again Corbyn gets all the attention, but it was the majority of MPs that decided they should focus on the challenge from UKIP and vote to give May total authority over the negotiations. I think this misjudgement epitomised almost a decade of bad decisions all of which involved an element of appeasement. John Curtice has explained why, with most Labour voters choosing Remain, voting through Article 50 was a very odd decision. As I’ve argued here, the referendum placed no obligation on MPs to vote to allow May to choose a Hard Brexit. If you are unconvinced about this, imagine the referendum had been to do nothing about climate change. Would MPs have been obliged in that case to follow the ‘will of the people’? Would it have been right to ignore a clear consensus among experts that their implementation of the vote would be disastrous? The actual EU referendum has the same ingredients as this imaginary case.

The second point is about membership. There is one clear Labour achievement since 2015, a huge increase in membership which numbers more than all the other parties combined. Is it really healthy that this should be regarded by most MPs as a problem? Arguments that half a million people are either Trots or under the influence of Trots are nonsense. Although it was Corbyn who inspired the increase in membership, it was not the left that wrote the rules that allowed the leader to be chosen by the membership alone. Having tried to make the leadership election more democratic, it is not plausible to then turn round and say you got the wrong half million.

There is a legitimate concern in allowing members to have almost complete control over which MP they choose as leader. It is not that they will choose a leader who is too left wing, but instead that they will underrate the importance of being able to win general elections, or at least not fully appreciate what it takes to win these elections. To this I would add that the membership may be insufficiently ruthless in getting rid of a leader who is failing to win, particularly when this failure is often very unfair (given our media, for example). But with questions like this we have also to ask whether MPs would be much better at judging success and punishing failure, and the experience with Miliband plus the constant attempts to appease the right suggest not. [1]

Elliott describes how many of the policies that Labour currently put forward - Brexit aside - are broadly popular when tested with the public. However if you attach the name Labour to these proposals, their popularity decreases sharply. Those who say Labour have become unpopular because they have ‘moved too far to the left’ misunderstand what is going on, or have more questionable motives. Elliot describes it as Labour becoming a toxic brand. Corbyn is part of that, but only part. The record indicates MPs are also responsible for the current mess.

As John Curtice explains, the question is not will the brand survive, but how and when it will recover. I can see two ways forward. The first way is for MPs to trust their membership, change the voting rules, and allow Corbyn to resign sooner rather than later. If he does not resign, the left has to bring forward a challenger. With good judgement, the new leader can lead from the left but with policies that the broad church that is Labour can live with, combined with a strategy for convincing the electorate that would make Owen Jones happy. The second way is that MPs keep the 15% rule, wait for Corbyn and the membership to give up exhausted, and then hope for a Macron type figure to emerge from among their number. The key question is which of those two do you think is more likely to give us a plausible candidate for Prime Minister?

[1] The Conservative Party shows that members can learn. They chose Cameron not because they wanted to modernise, or be green, or hug hoodies, but because (after 2 defeats) they realised the party needed to bury the image of the nasty party and they saw in Cameron a person who could achieve that.