Wednesday, 3 December 2014

Gordon Brown's Legacy is Perpetual Austerity. Good.

"Why are you so ANGRY?", I am often asked. I don't mind people who disagree. But what I cannot stand are people for whom the managerialist, high-spending government IS THE ONLY WAY. These are the people who will, with graphs and "facts" confidently tell you that because investment fell while Brown was spending all the money, then Brown had to spend all the money BECAUSE THERE WAS NO CHOICE. The other option, that there was no investment, because Brown was hoovering up all the money and people which might have been used to invest, doesn't occur at all to them. They are dangerous because they are plausible. They sound reasonable. They are confident of their analysis. Many of them are extremely well respected, and they often have the weight of academia behind them.

They all tell you the deficit doesn't matter, that "austerity" is not necessary or self-defeating and we should instead be spending more.  And like Maggie's 364 economists, they are wholly, ridiculously wrong. They may be right in every detail. But they were still wrong - the German Army of WW2 can plausibly claim to have lost no tactical engagements. They too were right in detail. They still lost. The 364 economists' descendants defending the Blairite, last hurrah of the post-war welfare state are wrong because they're extensively trained in the status-quo, and can see no alternative.

The state is too big. It spends 50% of GDP, and takes 45% or so in Taxes. Before WW2, this was around 25%. The state now seriously considers the contents of school lunch boxes, how much middle-class people drink of an evening or the font on a packet of fags a reasonable part of its remit. We are over-governed.

It's trivially true, as the managerialists claim that Austerity's ideological, that deficit fetishism is silly, but that does not make the coalition's spending cuts insane. What was insane is testing the proposition that public services improvement was simply a matter of fire-hosing money. Most of the money spent went on wages - headcounts went up, and pay (especially if you include pensions) outstripped the private sector. "Austerity" is merely the bleating of a well-paid client state being forced to live within the country's means once more.

Some spending makes sense: Road and infrastructure building for example - borrow at low rates to build things which generate real economic return. It's a no-brainer to turn the A1 into a motorway or upgrade the A303 by Stonehenge. Deficit fetishists whinge. But there is no equivalent need to have public sector workers paid more than private sector workers. They enjoy better pensions and greater job security, so pay them less! Freeze their pay till they get the same as their equivalents in the private sector, whose wages are set by productivity, informed by markets.

There needs to be fewer public sector workers, doing less, and paid about the same as those whose salaries are not guaranteed by the tax-payer. No tax-funded salary should be more than the Prime-ministers'. The problem is the state is trying to do too much, and only a slow, continued squeeze on it will bring the public finances back on track. It is only when you come across the public sector at work - four hour meetings with eight people paid over £30,000 a year, in which no-one goes away with any actions, that you realise how much fat there is to cut. It's not a trim that's needed. A saw needs to be taken to whole arms of the state, giving PEOPLE back control of their own lives, for good or ill.

If you blew up every Sure-Start centre and fired their staff tomorrow, is there anyone who wouldn't be able to cope? How many people would be immediately worse off without the attentions of social workers? Of course some would miss it. But many would be better off - think of happy families ripped apart by over-zealous enforcement of state-employees' decisions. Victoria Climbe and Peter Connelly's murders happened despite the tender ministrations of the state in these families' lives. Ministrations which may encourage others in society to 'look the other way' in the face of horror, as someone's paid to think about that sort of thing. Too many people have persuaded themselves "vital" services are vital, when in fact they're part of the infantilisation of a population which is losing the ability to look after or make decisions for, itself.

On the day after Gordon Brown announced he's to step down, his legacy is a British public carrying a burden of a state he built, which achieved little, and at enormous cost. The private sector is getting on with doing what it does, creating wealth, and coming up with new ideas, but it is shackled to a imbecile obsessed with box-ticking, and getting in the way. Oh, and the lumbering imbecile is very, very powerful, armed to the teeth, and can pick the private-sector's pocket at will. Worse, the imbecile actually believes it runs things.

We need to find ways to reduce inequality which don't involve hundreds of thousands of civil servants. Luckily, there are good solutions: a Citizen's basic income (or similar ideas like a negative income tax) achieve redistribution, but don't need a huge bureaucracy to administer. The Coalition's universal credit is a baby step in the right direction, and very popular with the people to whom it so far applies. Do not be thinking this shrinking of the state will leave poor people out in the cold: on the contrary, it will FREE the poor FROM the social workers and benefits officers who blight their lives with forms and stress, just as the private sector needs to be freed from onerous regulation, which do little but create a vulnerable oligopoly where a chaotic but resilient market once existed.

The only thing we can thank Gordon Brown for is that no Future Chancellor will ever think they've abolished "Boom and Bust"; and he tested to destruction the idea that all that was wrong with public services is they had insufficient money or staff. That's it. Done. The high-point of the post-war welfare state was reached under Brown and Obama. Bless him, Hollande in France is right now demonstrating what happens if you continue dancing when the music stops. The next revolution is that radical idea that the state should be leaving people alone. "Austerity", in reality the self-interested bleating of people whose jobs to interfere in other people's lives, has only just begun.

Thanks to Gordon Brown' complete and total failure as Chancellor, as Prime-Minister, and as a man, "Austerity" is permanent. Good.


Johnny Howson said...

Completely agree. More to the point since 95% of people I know actually do something useful they all agree too. But the difficulty is that we are disenfranchised.......there are NO viable political parties holding these views. Short of killing all con, lab & lib MPs how do we even start to shrink the state?

Jackart said...

The state is being shrunk. Fast, and anyone who says it isn't is a knob-head.

Anonymous said...

If there was a Citizen's Income why would anyone work?

How about instead of giving honours to people who have already got to the top and done well for themselves give the honours to people who create real new jobs?
Why give an award to a CEO who has been rewarded in his pocket for doing his job, (which might be laying people off!). Give the awards to people who create new businesses and jobs.

Jackart said...

"If there was a Citizen's Income why would anyone work?" For the same reason we work now. And of course it depends upon the level of the CBI

Hail the Tripod said...

I largely agree with your vision of what is desirable going forward. I don't see a citizen's income on the horizon though. And the headcount may be shrinking, but the assumed role of government isn't. Services are just outsourced into a potempkin market.

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