As long as the Democrats talked within Republican frames like “tax relief”, they always lost the argument. So why are Labour taking on Tory economic narratives during their party season? They’re handing the election to Cameron on a plate.
The first narrative is that we need to cut public expenditure to save the deficit and curb the national debt. Except that our national debt is much lower than most developed economies, and is projected to stay that way. Our deficit is large, but Cameron’s criticism of any fiscal stimulus would only have landed us in a bigger hole with more unemployment and smaller tax receipts; perhaps even a depression.
The second is that the public sector is an unproductive drag on the economy, and should be the focus of cuts. Except that the public sector injects stable spending power into the economy; provides the infrastructure and services that business can’t function without; subsidises businesses who want to pay scandalously low wages through the benefits system; is funded more by working people’s tax contributions than those direct from business; and so on.
For much of the left wing commentariat, who think “Left equals Labour”, this is more evidence of the intellectual vacuum at what’s left of the heart of the left Labour project. But New Labour was born from the marriage of social democracy and New Right economic thinking. Brown et al are never going to seriously rethink the economic terrain they shaped, which contributed to the near-collapse of the economy. Their only narrative these past few months has been “our cuts will be nicer”. Nice.
If only those commentators would look beyond Labour to parties who are articulating a genuine alternative, and who are challenging these Tory narratives. Like, urm, the Green Party. At the moment they seem resigned to an electoral wipeout without redeeming heros.
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