"I agree that many people have gotten little out of the last
forty years - but that isn't entirely for want of politicians trying. Labour
created the national minimum wage, and spent a fortune on tax credits. They
also hugely increased pensioner benefits. The coalition raised the tax
allowance, to try to change the distribution of income. They also spent a
fortune on pensioners, so that today - for the first time in history - you are
less likely to be poor as a pensioner than as someone of working age. The
current govt has announced big rises in the minimum wage - by almost 50% by the
end of the parliament.
"I agree that this doesn't recreate the jobs that once
existed. Mechanisation can be brutal to livelihoods, as machine breakers have
known throughout history. The Luddites, those who broke the new cotton
machinery; containerisation destroyed the port jobs and self-driving cars will
destroy the livelihoods of many Pakistani and Bangladeshi minicab drivers, as
well as white working class London cabbies. (Note that the benefits of
these changes are often the poorest - cheap clothes matter most to those with
least money). I think we could go further to redistribute income. But bringing
back the pride of earning a good income is tougher. It was easier 1900-1960,
because in that era technology replaced skilled labour with unskilled - skilled bootmakers replaced by machine operators. This was tough on the few, but
created well-paid jobs for the many. Since then we have had the reverse, with
technology destroying low skill high pay jobs (train drivers are left, not many
others). We don't know why technology has changed from being skill-replacing to
skill-biased, but it has, and this has affected all of the developed
world.
"I think Labour did try to help people through the
dislocation of economic change. The deal was that rather than have a something
for nothing welfare state, benefits would be much more generous to those in
work, and crucially would be paid through the tax system to the main earner. So
they would look and feel like earnings. The idea was to create some of the
dignity of labour that comes from being able to provide for your family. You
work, you get the self-respect. Furthermore, they deregulated the labour market
so that pretty much anyone who wanted to work, could work. Very different to
continental Europe, and to the US (where the indignity of being poor is called
food stamps, and is explicit).
"Now that didn't work, but that was the plan. And it wasn't a
bad one, compared with either the US or continental model. But it still wasn't
good enough."
I thought this look back at the recent history of government's attempts to approach the dislocations whose results have been revealed in the referendum was enlightening. My beef with the political class is that they haven't proved capable of helping disadvantaged communities to work through those dislocations psychologically and culturally, as well as financially, a thought which will lead into my next set of musings. Perhaps that's not a realistic request to make of politicians and the media, but it seems instructive that although I'm a moderately well-informed person I have never thought of the actions of the Blair-Brown administration in the terms Dr Abacus describes; and if I haven't, it wouldn't be a surprise if the people intended as their beneficiaries haven't either.
No comments:
Post a Comment