There is a narrative which has been adopted by politicians from both the left and the right. A narrative which purports that the electorate has re-polarised, that the centre ground has become broader and more barren. The only part which is accurate is that the centre ground is now barren. The Liberal Democrats lost all credibility when their participation in the Coalition Government of 2010-2015 exposed their complete lack of political conviction. As for UKIP they are a one issue party. So now that they have delivered on that issue; there is no longer any reason to vote for them. And as for the Scottish Nationalist Party much of their success in 2015 was due to the collapse of Scottish Labour in that year. The resurgence of Scottish Labour is due to Jeremy Corbyn moving the Labour Party to the left. This does not mean that the electorate has moved to the left. Scottish and Welsh Labour have always been further to the left than their English counterparts.
No the British Electorate has not changed its stance. The main reasons their voting patterns changed in 2017 is twofold. Firstly there is no longer a credible party in the centre ground to vote for and there is no where for the anti-establishment/protest vote to go. So there were many voters with no real political allegiance which brought the second factor into play: the campaigns. Labour’s anti austerity campaign proved to be more alluring the Conservative’s increased austerity campaign. So as the floating vote drifted left the Conservative fear campaign activated the apathetic voters. People who don’t normally vote and who never vote for anything but occasionally vote against things came out to prevent a socialist labour government from being formed.
This misconception about the re-polarised electorate has been orchestrated by political extremists from both the left of the Labour Party and from the right of the Conservative Party. And as we have heard during this conference season they have dominated the agendas of both conferences. The social reformists within the Labour Party apparently no longer have anything to say. And the Liberals within the Conservative Party did not even attend their own party’s conference. Politics is all about leadership and leadership requires conviction. If you intend to lead a nation and spend billions of pounds of tax payers money in the process then you need to be absolutely certain that you are leading in the right direction. What we are witnessing amongst the so called political elite is an epidemic of self doubt. The only people still talking are those who are spouting the political philosophies of the past. Political philosophies which have been tried, which have been tested and which have been seen to fail. Austerity was proved to be wrong by John Maynard Keynes between the wars. Socialism has had a significantly negative impact on every society it has had the opportunity to influence. The extremists have successfully framed the debate as market versus state. Even though all the astute people know that the way forward is market plus the state. The real debate is about where the line between market and state is drawn. As it is the drawing of this line which determines the remit of the state but we must first determine the remit of the state to enable us to draw the line.
First we must accept that the remit of the state is to overcome market failure to eradicate inequality. Then we can turn our attention to understanding what market failure actually is and how it causes inequality. We know that if a market is over supplied then prices fall and so do profits. We also know that the opposite is true when markets are under supplied prices rise and so do profits. Markets do not have a social conscience. They are not interested in need they only respond to demand. So all markets have a built in bias to under supply, and that bias is strong. It will over whelm any socioeconomic policy that challenges it. The evidence is absolutely clear if we are to reap the benefits of market economics then we have to let the markets be true to themselves. This means that we accept that the bias cannot be changed so we dismantle all current government policies which are trying to challenge the bias. We remove all state subsidies, all state incentives all tax breaks and all punitive taxes. The State ceases to try and influence how any body spends or earns money. When all this is removed risk will draw the line between market and state. The markets will decide how much they will supply and therefore how much they will fail to supply. The markets will never risk investing in the expansion of production to supply to people who cannot afford their products.
So the state must take on those risks and supply to the people who have been priced out of the market. But they must do it in such a way that they do not distort the markets. The line between market and state must remain thin crisp and un-blurred. Therefore all government contracts must be brought back in house and all agency staff working in the state sector must be directly employed by the state. If the state over supplies it will be competing with the markets which will distort them and blur the line. The same would happen if the state supplied products that there was no need for them to supply. Understanding market failure and how it causes inequality is key to distinguishing market activity from state activity. Market failure is an integral part of the market system and in the main only reflects choice. But when the markets fail to supply enough essential goods and services to fulfil all of society’s needs those who are priced out of the market are forced to decide which of life’s essentials they must go without. Anyone facing this choice through no fault of their own is subject to systemic inequality directly caused by market failure. So the market’s failure to supply essential goods and services is the cause of inequality. So if the state is to fulfil its remit of over coming market failure to eradicate inequality it must only supply essential goods and services and it must only make up the short fall. And they must do it with state owned and state run supply chains.
This type of economy has been described in the past as a mixed economy, but labels are important and this was a bad label. It implied that both elements of the economy operated in a similar way and could be combined in a seamless way. It was not clear where one ended and the other one began. This vagueness created a massive opportunity for commercial enterprizes to exploit the British tax payer. This exploitation caused the fall in Britain’s international competitiveness and the greater part of our huge public debt. The right label is twin economy. This label enables all to appreciate how distinctly different the two economic processes are in both make up and objective. Maintaining that distinction will be the means that future tax payers must use to protect their contributions from the exploitations of commercial enterprizes.