Winner of the New Statesman SPERI Prize in Political Economy 2016


Showing posts with label Robert Saunders. Show all posts
Showing posts with label Robert Saunders. Show all posts

Monday, 1 June 2020

How Cummings continues to gaslight the nation


There is little sign of anything that can dislodge Dominic Cummings, the Prime Minister’s adviser in chief, from his boss’s protection. Yet there is no doubt the episode has been costly in terms of the popularity of the Prime Minister and his government. It is dangerous for the gang who say they are on the side of the people against the elite to reveal themselves as an unaccountable elite who couldn’t care a damn about the sacrifices others have been making during a crisis whose severity is largely that gang’s fault.

The cost goes beyond popularity. The government is desperate, far too desperate, to end lockdown well before the experts think it is safe and before common sense says it is safe. The Cummings affair will only make that even more dangerous, as those so disposed flout the rules because if Cummings can do it, so can they. And remember how ministers have fallen over themselves to reinterpret the rules so that they become Cummings-safe, and thereby allow those rules to become open to interpretation (or even instinct).

To understand why this has happened, you have to stop thinking about how our democracy used to function. The old rules, like when an adviser becomes the story they go, just do not hold anymore, because this government has no respect for those rules. Suspending parliament in 2019 should have been warning enough of that. As Robert Saunders notes, the online version of parliament put together to cope with COVID-19 has just been curtailed, with no obvious alternative in place that allows every MP to vote.

We now have a populist government, in the specific sense that it has little respect for the trappings of a pluralist democracy (parliament, the civil service and so on), and instead pretends to speak for the people. The people in this case is a number big enough to keep them in power, and certainly does not reflect every voter. In reality their interest in the wishes of 'their people' is slight, and mainly involves ensuring they continue to win power.

Which is why Cummings is so valuable. Winning a referendum where you had to persuade a majority of voters that leaving the EU would not have an impact on their economic wellbeing was quite an achievement. He gaslighted half a nation into making them poorer because of an issue few of them had cared about before the referendum. To then convince enough people that Johnson accepting a deal which the EU originally proposed and the UK rejected was some kind of triumph was also impressive. Winning a large majority in the subsequent election sealed his reputation as a master manipulator of voters, although it has to be said that with all these things he had tremendous help from the collective media.

But Cummings is much more than a manipulator of voters. He has a personal mission as well, and intends to use his position to recast the UK state into something more to his liking. He didn’t ensure all ministerial advisers report to him because he wanted to ‘improve the coordination of government messaging’ (gaslighting of journalists), but because he wants a say in everything any minister does that might influence his mission.

In this he has found the perfect partner. Johnson famously wrote two articles about the EU before he chose to put all his eggs in the Brexit basket. That calculation was about his route to power rather than anything based on principles. Johnson’s skill is in charming voters, provided he is fed the right lines. He is happy to allow his partner in crime to pursue his own agenda, because Johnson does not have an extensive agenda of his own.

The combination of Cummings and Johnson have effectively purged the Conservatives of any vestiges of One Nation Conservatism. That was ruthlessly done when Johnson came to power. It is worth repeating the tweet from ex-Chancellor Phillip Hammond replying to Matt Hancock (HT Mark Thomas): “Sorry Matt, I’m afraid the Conservative Party has been taken over by unelected advisors, entryists and usurpers who are trying to turn it from a broad church into an extreme right-wing faction.”

There can be little doubt the key unelected advisor he had in mind was Cummings. When Johnson won the election and signalled an early reshuffle, many commentators thought that would be the time when Johnson reintroduced some of the remaining (in both senses) talent into the cabinet. Instead, again I suspect with a great deal of help from Cummings, he chose those who would do Cummings bidding. The previous Chancellor could not accept that, and Johnson was prepared to fire him for it, but it was Cummings making the demand.

The ultimate in Cummings gaslighting was his appearance in the Rose Garden of No.10. As Frances Coppola writes, it was a gigantic show, a show of personal power. Look what I can do, he was saying. I can lie about why I went to Barnard Castle, I can lie about how I foresaw how vulnerable the UK was to a pandemic, and there is nothing you can do about it, much like all the previous lies I have made in the past and got others to say. Cummings was saying in no uncertain terms that he is the power behind the throne. And later, when a BBC presenter tells the truth about what he did, his helpers get the BBC to give her a reprimand.

But Donald Trump got rid of Steve Bannon. Why didn’t Johnson do the same, knowing how weak trying to defend Cummings would make him look? I think the key difference is that Trump doesn’t understand his evident weaknesses whereas Johnson is acutely aware of them. He knows he cannot cope with the detail which any Prime Minister in a pluralistic democracy is required to know. It makes him impatient with that democracy, but it also makes him feel vulnerable. His revealing quote after his recent appearance in front of select committee chairs was about how much Sherpa time it took for him to appear as clueless as he did.

Above all else, coronavirus has shown him that his political instincts can lead him seriously astray. His handling of the pandemic has been diabolical, and he cannot use surprise as an excuse. He continues to make mistakes, almost certainly ending the lockdown earlier than he should, and thereby delaying a complete recovery. (Note the current Chancellor, who is winning over a style obsessed commentariat, is as responsible for this as anyone.) The UK’s “world beating” track and trace system, like so many schemes farmed out to private contractors, is turning into a fiasco.

All those decisions were made with Cummings at his side, so it is not as if Cummings necessarily improves Johnson’s decision making capacity. What Johnson desperately needs is someone with a proven record of gaslighting a nation to get voters to forget about it all as quickly as possible. For that reason Cummings survives, for now at least. The consequences of all this for the UK cannot be overstated. When Frances Coppola writes that “Britain will now be run by puppet politicians controlled by a ruthless, manipulative, unaccountable mastermind” she is essentially correct.

How could it be that just one unelected adviser can have so much power? The mechanics of how it happened are clear, but Johnson’s victory in 2019 indicates that too many in the media and the country have failed to understand what was going on. When a government behaves like populists, and talks like populists, and does things populists would do, why does most of the commentariat still think the threat in 2019 came from the left?

Populist governments have a leader who takes absolute power because they tell the people they embody their best interests and hopes, and that pluralist democracy is frustrating these interests and hopes. They can be individuals like Trump who gets rid of any adviser who annoys them, or they can be the frontman for one or more advisors who hold the real power. Either way the idea of any collective government disappears, particularly if the advisors despise the elements of a pluralistic democracy that normally keeps a government on the rails. We have paid the price with one in every thousand dying from COVID-19, most unnecessarily, and with hundreds of NHS staff and carers dying because of lack of physical or financial protection. It would be a big mistake to assume this is the only sacrifice we will have to make on the altar of one man’s vision.


Tuesday, 11 February 2020

The UK’s place in the world




As an economist, I naturally focus on the economic aspects of the EU. The EU is mostly about economics. To counterpoise sovereignty as an alternative perspective to economics misses an important point: most EU rules stem from the economics of free trade within the EU. The EU wants common regulations to make it easier to trade. The EU wants restrictions on state aid to prevent countries giving their own firms an advantage over others in the union. Much the same applies to labour market and environmental standards.

Economics is also involved in another aspect of being in or out of the EU, and that is how the UK sees its place in the world. Is the UK’s identity partly a European identity, or does the UK ‘stand alone’, independent of all multinational blocs. Anyone interested in this question should read an excellent and compact essay by the ‘Red Historian’, Robert Saunders.

Those who want us out of Europe need to address why the UK became part of Europe in the first place. After the war, the UK had tried a different strategy. After all, being part of Europe did not look very attractive in the aftermath of a war that had destroyed large parts of it. Instead the UK tried to forge its place in the world based on its history, a history of empire.

This involved three elements: the remains of Empire, the Commonwealth, and our special relationship with the US. Harold Macmillan spoke of Britain playing ‘Greece’ to America’s ‘Rome’, acting as a wise counselor to its idealistic but naive successor. But that strategy failed, because neither the Commonwealth or the US were particularly interested in playing their allotted roles in this scheme.

Two quotes from Saunders’ essay are indicative. The American Dean Acheson said ‘The attempt to play a separate power role’, he declared, ‘a role apart from Europe, a role based on a “special relationship” with the United States, a role based on being the head of a “commonwealth” which has no political structure, or unity, or strength … this role is about played out’. Privately, Harold Macmillan agreed: ‘all our policies at home and abroad’, he lamented, ‘are in ruins’.

This is why we became a part of the EU. The UK wanted to continue to play some significant role in the world, and our attempt to do so independently of Europe had failed. So now we have left the EU, is there any coherent vision of an alternative strategy?

In the Brexit debate you can hear an echo of the failed post-war strategy. No trade deal with the EU is now apparently called the Australian relationship, because that sounds better. We also hear an echo of an even earlier history, when appeals are made to the UK’s buccaneering spirit. However, as Adam Curtis explored in a 1999 documentary (HT Adam Tooze), there is a modern counterpart to this, which is the story of how we ended up selling weapons to Saudi Arabia. But as Robert Shrimsley points out, this vision conflicts with the government's new found need to worry about left behind regions with what some ministers call 'legacy industries'.

Yet stories and exceptions apart, the truth is UK industry is not particularly buccaneering. This has nothing to do with being constrained by the EU, as a comparison with Germany makes obvious. In fact the opposite is the case. One of my first jobs after I graduated was looking at the steady and significant decline in the UK’s share of exports in world trade, which was something of an obsession among UK policymakers.

The UK’s weakness is perhaps not surprising in a country where the middle classes regard an engineer as someone who fixes your washing machine. What the UK does well is produce financial, business and other services. But to successfully export these often requires pretty deep trade agreements, like the EU single market. Which is why our export share within the EU rose so substantially after the Single Market was formed. Which major economies are going to enter into the equivalent of the Single Market with the UK?

There is little sign that the current government, and particularly those who lead it, understand anything of this. Comic book stories substitute for solid evidence. They have shown us nothing to suggest that the UK can continue to have any voice among those of dominant players like the US, EU, China, India, Russia and Japan. As Robert Saunders writes
“In writing a history of Britain as a small power, it pretends that nothing has changed: that a nation stripped of its colonies, its industrial power and its control over global finance has the same options today as in the age of its pre-eminence. That means that we are not being serious about the choices in front of us.”

Does the UK need to have a special place in the world? Can we not accept that others will take the key decisions, and we will just have to do what we can in a world over which we have no control? As Saunders notes, in a benign world this might be tenable, but we no longer live in a benign world. This is where the economics of trade re-enters the equation. A UK with no big country or union to help protect it will be at the mercy of any big global player that wants to gain some trade advantage at our expense.

For many in the ERG the implicit answer to this problem is the United States. They are encouraged by Trump’s enthusiasm for Brexit. They fail to see that his enthusiasm is based on antagonism towards the EU and his desire to exploit our weakness. For those who have a nostalgia for days of glory that weakness will be hard to take, as it will be when our legacies of empire are gradually taken off our hands along with the trappings of international influence.

For all these reasons, Brexit is not tenable in the long term, as those who tried and failed to make it work after the war finally understood. Their conclusion will be our conclusion after Brexit: for the UK to flourish in a secure environment it has to be part of the EU. The only question is how long this realisation takes and the manner of our rejoining.


Tuesday, 25 June 2019

Once the Nasty party, now the Brexit party


Brexit could be a gift to Labour that will keep on giving, if the Labour leader is able to grasp it

One of the sentences you are sure to hear nowadays is: “Brexit is not going to go away anytime soon”. It is true because Conservative party members will not let it go away. A recent poll showed a majority of those who will elect our next Prime Minister would prefer achieving Brexit to Scotland saying in the UK, Northern Ireland staying in the UK, or even the survival of their own party. They want Brexit even if it causes severe damage to the economy. The only thing that the poll suggested might make a majority forsake Brexit is the prospect of Jeremy Corbyn becoming Prime Minister.Therein lies the cure for our current Brexit blight and the opportunity for more than one period of Labour government.

In the short term Brexit fanaticism is extremely scary. The wish to see Brexit happen even if it leads to the destruction of the Tory party is utterly extraordinary coming from Conservative party members. Of course Conservative MPs do not want to see that, but their survival in government now seems tied to getting Brexit done, and so most seem prepared to contemplate a No Deal Brexit if that is what it takes. Our only hope to prevent this are a small band of Tory MPs who might put country before party, who could then combine with most opposition MPs to stop this happening.

Even if the attempt to leave with No Deal in October fails or does not happen, the Tory party is not going to give up. This radicalised membership will do its work by selecting Brexiters when MPs retire or leave for other reasons, and they may well deselect some of those who oppose No Deal. At some point those willing to stand up in parliament against a No Deal Brexit on the Tory benches will shrink to become insignificant. At that point Conservative party members will get their prize, if they are still in government.

How did the Conservative party descend to this level of fanaticism about just one issue? Robert Saunders’s New Statesman article about the closing of the Conservative mind is well worth reading. It is particularly useful for those young enough to think that Conservatives were always neoliberals. He writes:
“For most of its history, the Conservative Party has embraced ideas, while disclaiming ideology. Yet today, a party enslaved by ideology is almost barren of thought, just as it faces a historic set of challenges.”

Sauders has some ideas about why this happened but I think it remains a puzzle. One possibility is simply the scale of their intellectual victory under Thatcher, such that their Labour opponents showed they could operate in the UK that Thatcher bequeathed but with a more human face (including more NHS spending). The Conservatives became, to use Theresa May’s words, the nasty party in voters minds. The only way forward was to double down on reactionary xenophobia (Hague’s “foreign land”) or ramp up the neoliberalism (Osborne's austerity).

How did the Tory party membership get so radicalised about Brexit, when all the talk was about radicalism and entryism in the Labour party? The reason is that the Tory press that spent so much ink on talking about an imagined hard left Labour membership was also busy radicalising the Conservatives. Brexit embodies a mixture of nationalism, xenophobia, nostalgia and neoliberal zeal that Conservative party members cannot resist.

In all this scary stuff there is a potential light at the end of the tunnel, a way out of all this mess. And despite all the talk, it isn’t a Remain victory in a People's Vote. Even if we have another referendum, which seems only likely in a last minute panic created by an EU ultimatum, it will not de-radicalise the Tory membership. If, as seems prudent, the referendum is about the withdrawal agreement, then Brexiters will say that the right question was not asked. If it involves No Deal, then any loss by a few percentage points (and the press will ensure at least that) will just become unfinished business.

The best way for Brexit to end is not in the drama of another referendum, but instead with a whimper. The only way that can happen, with a radicalised Tory membership, is by electing a Labour government. As I have argued with little challenge, the Tories would oppose any sort of softer Brexit a Labour government might propose, so together with Remainers they would have a blocking majority in parliament or the country. How far a Corbyn led government would go down this road to nowhere we do not know. But he would never be allowed to put a Labour government at risk by pursuing a lost cause, so Brexit will not happen as long as a Labour government remained in power..

What we know a future Labour government would do is undertake a lot of measures designed to help one section of the Brexit electorate, the so called left behind. Very soon those and other voters would lose interest in Brexit, as politics became all about what the Labour government was actually doing. People would increasingly look back at the years following the 2016 referendum as wasted years, and an example of something never to be repeated.

At first Conservatives would try and keep the flame of Brexit alive. Doing so would only ensure their unelectability, as Labour would only have to remind people of the chaos of the Brexit years. Conservative voters and MPs would gradually realise that being the Brexit party was like being the nasty party, a sure way not to be re-elected. It may take one or two more elections, but as that poll of Conservative party members suggested, the only thing that could make them give up Brexit is a Corbyn government. That is in essence why a Labour government is the best, and I suspect only, way of disposing of the Brexit blight that has infected the Conservative party and therefore the UK.

This is the light at the end of the tunnel, such that Brexit ends with a whimper. However you have perhaps already wondered why, if this is all true, so many Labour voters and Remain supporters chose not to vote Labour in the European elections? Why have the Liberal Democrats suddenly managed to break free of the shackles of being in the 2010 Coalition government to be among the four contender parties in opinion polls?

I think there are two answers, one that acted as a trigger and one underlying force. The trigger was the Brexit talks between Corbyn and May. Although political commentators rightly gave these talks little hope of success, their length would certainly have provoked a fear among Remainers who had voted Labour in 2017 that Brexit could happen in this way. In addition the European poll seemed like an appropriate time to protest.

The underlying factor is that many voters are now identifying themselves in political terms along a Remain/Leave divide instead of a political divide. Remainers were getting fed up with the absence of a strong political voice making the case for Remain, and instead hearing endless discussion of impossible Brexit plans from the ERG. All they hear from Labour (because most voters do not read political speeches) is the latest version of Labour’s position on a second referendum. Labour seems to be muffling its own voice on the issue of the moment. The Liberal Democrat campaign slogan of ‘Bollocks to Brexit’ was just want Remainers had been waiting to hear.

Which brings us to the current shadow cabinet meetings. Corbyn has moved another iota, agreeing that an option on the ballot would be “a real choice” for Remainers, but not moving nearly as far as many want. There is a certain symmetry in the two main parties position on Brexit, but also major differences. The symmetry is that, during May’s period, both parties wanted some form of compromise compared to what most of their party members wanted. Both parties eventually encouraged an insurgent party, the Brexit party for the Tories and the Liberal Democrats for Labour, that was able to take a large number of their votes by offering policies that forsaked compromise. But there the similarity ends.

The Conservative party will decide, in one way or another, to come to some kind of accommodation with the insurgent party. That will happen by changing their Brexit policy to mirror the policy of the insurgent, or to cooperate with the insurgent party in any general election, or both. The Conservatives, as they always do, will adapt to the threat they face in order to stay in power. .

The Labour leadership, in contrast, is in denial. All the evidence points to their failure to campaign for Remain as being a critical threat to an election victory, an election that could come very soon. Even before the European elections there were as many Remain and Leave maginals, because many working class Labour voters had changed their mind since 2016. In addition, it turns out Labour leavers do not feel that strongly about Labour taking a Remain position, but Labour Remainers care about it a lot. I have not come across a single reputable pollster that suggests Labour are increasing their General Election chances by keeping its pro-Brexit position, and plenty arguing that to win they have to back Remain.

The argument that Labour needs to support Brexit to win the election is no longer credible. Instead the leadership’s support for Brexit puts at serious risk a Labour government that could rule for more than a decade. When you add in the impossibility of a Labour government enacting Brexit, and I just do not see why Lexiters remain in denial.

Incremental moves until conference also makes no sense as a strategy. The longer Remain voters get used to thinking they are going to vote Green or Liberal Democrat, and as long as the Labour leadership resists what appears to be overwhelming force, there is a strong risk that many will carry that habit into a General Election, if only because Labour’s eventual change will lack credibility.

If the shadow cabinet are interested in maximising Labour’s chance of being in power, it has to change Labour’s official position to one of supporting Remain now. No one is asking Corbyn himself to campaign for Remain, and it would probably be better if he didn’t, because there are plenty on his front bench who can do so more credibly. But their campaigning has to reflect Labour’s official position, which is to become the only party that can make Brexit go away.