Simon Duffy

Thoughts, Bemusements & Arguments

Month: March 2017

Tilting at Windmills or Radical Hope

I was very lucky recently to get the chance to participate in an event organised by the University of Leeds and Hope Not Hate entitled: A Future for Post Industrial Communities? It provided much food for thought.

The reality of post-industrial decline

The central focus of the two days of presentation and discussion was the fate of all those many towns and villages across the North and the Midlands where heavy industry or mining had once been dominant: Bolton, Barnsley, the Black Country, County Durham and many other places, including the City of Sheffield, where I live. The people from these places established our industrial heritage, built our national wealth and fought for the social rights that established the welfare state, giving us the legacy of social justice that we are now so busily frittering away.

Many of the academics noted that in these places, typically Labour-voting communities, the vote for Brexit was high and the vote for UKIP had risen. It was noted that in these places, as the primary industry had declined, it had been replaced with very little. Today people survived by working really hard, but with no job security, multiple jobs and low pay. Today the UK is the most unequal country in Europe, and these communities were on the wrong end of that inequality.

It was also noted that that these communities lacked power. The UK is the most centralised welfare state in the world and these places have minimal democratic control over their communities and minimal representation in London. They have been abandoned by mainstream politics. Moreover the social structures, the meeting places, the pubs, churches, working men’s clubs and leisure facilities had all declined. People have few opportunities to meet, organise or advocate for themselves; poverty has been privatised. The opportunity to speak out, make change or even rebel has been diminished to the point that these communities present no threat to the status quo.

The consequence of these multiple injustices are severe and include the fact that people living in these places will tend to die many years earlier than the people living in places that have power and money. But it was more encouraging to hear that in other places, say Germany, industrial change has not led to this kind injustice. Communities can be supported to develop and to get back on their feet. There is nothing inevitable about decline; but Britain seems to be leading the way in heartlessness and inequality.

It was also noted that racists can take advantage of these injustices. Many felt that the Brexit decision was influenced by those who were frightened by immigration. Many feared that the problems of racism and race hate, which are bad enough already, could now get much worse.

Competing identities, complex injustices

It struck me how, when these multiple injustices pile up, one on top of another, it can become very difficult to work out which fight you are having and which injustice comes first. If we are not careful we end up tilting at windmills – nobly taking up arms against the wrong thing in the wrong way.

Just to be clear. It is clear that Hope Not Hate are not guilty of making this mistake. Their agenda is clear and important: to combat the rise of racism and to advance appreciation of our multi-cultural communities. They have already demonstrated that it is possible to defeat racism by using community organising strategies in local communities. It’s good to have a clear mission, a clear target and a clear strategy. They are an organisation worthy of support.

My fear is more for myself, and for others who like me, who want to see greater social justice, but who may not be quite so sure where to put our energies. As ex-MP Professor John Denham noted: we need to distinguish underlying causes and symptoms; we need to get the cart before the horse.

My own assumption is that racism is largely a symptom of other problems: it’s a cart pulled by the horse of social injustice. There are racists, and they can exploit the negative political and economic circumstances harming people in these places. But these places are not naturally racist, nor is racism the primary cause of their problems. Or at least, people in these places suffer from injustices which have some rather different root causes. In my own talk I stressed the powerlessness that had created the circumstances where injustice went unchallenged.

But this whole discussion can create a whirlwind of different perceptions. In particular discussions over the two days revealed wildly different assumptions about which of our identities are most relevant to our understanding of what is really going on. Our identities really matters; but these identities are also complex, disputed, sometimes useful and but often dangerous.

If we think about ourselves and we think about our beliefs, passions and prejudices then we can see how complex this whole business can become.

Race is clearly an important identity that plays a powerful role in people’s imagination. Racism is real and it feeds off this category of race. But race is a very peculiar identity. The racial categories that dominate modern politics were invented by racists largely for the purpose of justifying imperialism. Race is a possibly a fiction; but somehow we seem stuck with it.

And do we value our racial identity? I certainly don’t consciously value being white; I am not proud of being white and I wouldn’t ever want to organise my life around that identity. I cannot even bring myself to tick the ‘white’ box on forms seeking our racial profile. I’d rather live in a world where everyone is ‘other’ and not be parcelled up by such a useless concept.

But, if I was subject to vile racial abuse, I’d certainly want to organise around my racial identity in order to protect myself, my family and my friends. It’s no comfort to be told that your racial identity is an imperialistic confection when someone’s kicking you to death. These categories become important as a matter of self-defence because other people have made them vitally important. The same is true for disabled people, viciously under attack by the current Conservative Government. Not to use the concept of disability when your enemies are using it against you is a mistake.

Over the course of these two days I found my head whirling with all these competing categories. Victims and perpetrators seemed to change places and people were forced to wear or to shed the groups identities that clearly matter to some people, and some theory, but may not matter to people themselves:

  • White working class men are seen by some as a threat
  • White working class men are seen by others as victims
  • But do white working class men really exist?
  • Whose interests does this identity serve?
  • Probably not the people shoehorned into it.

There were many other fractured groups. Some academics stressed the changes in the world of work, the end of industry and to the loss of valued work roles. Others noted the unfair distribution of job roles and the way in which women were missing from so many of the histories of these places. I was left wondering whether we were sometimes mourning a model of industry that was deeply disempowering and patriarchal. Can we do no better than choose between giant top-down heavy industries or the precariat working in the fluid service service sector? Aren’t there better ways of cooperating and of being productive than working for some anonymous corporation?

Why local identities matter

Perhaps all of our identities are a bit like this – artificial and exploitable. In fact some argued that one of the identities that really does matter to me – my membership of various geographically defined communities is in danger of being exploited by those who pretend that we solve structural problems like inequality simply through creative community action. I have a great deal of sympathy with this critique of the Big Society Bullshit.

However, at a personal level, I must say that I don’t think my Northernness, my being citizen of Sheffield or my living in Nether Edge is quite as peculiar, or as artificial, as my ‘Whiteness’. The reason why I think such identities do matter, and are worth defending, is that as a citizen part of my role is to look out for the place where I am. Not because my place is better than your place, but because it’s my place. I am a Bolton Wanderers’ fan, because its my team, not because I think it’s the best team. We need people to care about our places (and particularly the people in those places) in the same way that football teams need fans. Without identities like these we lose attachment, passion and commitment to our people and our places. Without identities like these then these places and their people will simply cease to exist as valued places.

Of course this does not mean we should be so attached to any of these places that we lose our sense of proportion. I don’t want Barnsley to be treated better than any other place, I just want it to be treated fairly. As a matter of fact Barnsley doesn’t get its fair share of public spending: It is missing £0.84 billion of its fair share of public spending (50% of it actual spending). This is wrong and this is something we can change.

Justice demands that I can stand back from all these identities – but not for ever. For justice also demands that we use our identities to advance the cause of justice. The challenge is to know when to use our identities and how.

I was particularly struck by how suspicious many were to the idea that small local communities – not just Barnsley, but the small townships, villages, parishes and neighbourhoods from which its made – did not need or should not be granted more power or control over their own destinies. While many are prepared, at an intellectual level, to accept that the UK is a hyper-centralised state, I do not think there is a strong sense that this is a serious problem for social justice, in its own right. I am not sure why this it, so this is only supposal:

  1. Perhaps we are frightened that those of us who live in these places are simply not to be trusted with deciding important issues for ourselves. Perhaps we are thought to be too racist or too sexist. (In this sense, for many, the Brexit decision will have confirmed their prejudices about us.)
  2. Perhaps we are wedded to the dream that social justice requires that every decision be made by the Prime Minister or her minions. The idea that a fair welfare system is identical with one giant nationalised industry seems hard to shake off.
  3. Perhaps many of us enjoy a cosmopolitan lifestyle, moving between differences places, and expecting that these places will be looked after by other people or by the state. No place is our place, they are always some body else’s responsibility.

Colonising England

Another idea, offered by the brilliant Reverend Al Barrett, is that some of this refusal to take the local seriously is that we are still in an Imperial day dream: Britain is still united, Britain is still Great, our mission is noble, but sometimes the natives just get a bit restless. I was also reminded also of an insight by my friend Cheryl Barrott: Northerners have never really recovered from the Norman invasion.

This may seem fanciful, but the way in which we’ve responded to industrial change does seem like a form of colonialism – even strip-mining. I was particularly touched by the story from two ex-miners from Durham, where I grew up. They explained that, as the mines were closed, Durham’s pit villages were classified from A to D. Villages that rated D were to be abandoned – left to rot – but people still live in these D-villages today.

I was shocked by this and after the conference I told my mum about it. But it she knew all about it. She remembered that the policy was put in place after I’d gone off to university. However she was volunteering for Samaritans at that time and so she talked to lots of folk who were living in D-villages. Their sense of despair was obvious.

It also struck me almost all my friends from Durham chose to leave the area after university. My mate Antony is one of the few honourable exceptions. There was no meaningful plan to build community, economic security or new forms of economic development to the communities of County Durham.

The same colonial attitude can be witnessed inside some of those industrial cities that have supposedly ‘benefited’ from more investment. Recently the BBC and its money moved to Salford; but little positive changed for the people of Salford. Instead they saw the quality of their own housing deteriorate, just as shiny new office buildings rose up around them.

Some of the natives are left behind as the money train moves out. Some of the natives are forced out as the money train moves in. What is clear is that the natives lack control of their own homes, their land, their work and their destinies. They must simply adapt to the law of the master.

It was particularly striking in this regard to hear from Labour MP Hilary Benn. It was a shame that he only had enough time to give his speech, so he missed the chance to listen to the detailed testimonies that explained how so many communities had deteriorated – despite 3 consecutive Labour Governments. I often feel sorry for MPs. One of the side-effects of the massive concentration of power in Westminster is that the MPs are far too busy to actually find out what is going on. It may be unfair, but it seemed to me that the one social injustice that really got Hilary Benn riled was why it took him so long to travel between his constituency in Leeds and his home down South.

Anyway.

The main focus of Benn’s speech was to remind us of the importance of investment. Communities couldn’t thrive without investment. And if we, the people of the country, can’t afford to invest in our own country, then we would need to seek foreign investment in order to make good things happen.
This seems reasonable, doesn’t it?

Until you think about it.

How can it be the case that a country of over 60 million people, with a long history, good education and at least the trappings of a democratic system, needs someone else to give them money in order to make anything good happen?

What’s more nobody just gives us money.

Instead they buy our industries, our towns, our resources and our people.

What’s the difference between foreign investment and colonial exploitation? The only difference seems to be that we choose to be exploited. The UK’s economic policy seems to be to make ourselves the most exploitable country in Europe: this is why our salaries are so low; this is why our job security is so low; this is why our benefits are so low and this is why our productivity is low. We offer other people high volume, low cost labour. We are the modern equivalent of the American South: the masters milk the profits, the rest of us do the work.

Perhaps, when someone says investment we should always ask: What have we sold-off now?

Radical hope

This whole approach to economics makes no sense. It locates human and economic value in money and in things – but not in people. Yet we know that people can thrive in any environment, if they have control, the ability to adapt, to create and build afresh. Technology and knowledge have never been so accessible. We don’t need to turn ourselves into somebody’s else’s slave class in order to survive.
It may be a long journey back to a proper sense of our own value. We may be tilting at windmills for decades, but we start with one radical assumption:

We, the people living in these places, are good people who have the right to shape the destinies of our own communities together.

We don’t need paternalism or meritocracy. We just need a fair share of our common resources and the means to shape them to our own advantage, to create a better and more welcoming world for everyone.

The Centre for Welfare Reform has over 80 Fellows all of whom have real experience in creating the kinds of solutions that combine justice and citizenship. Our radical hope is that we can finally abandon meritocracy and its wonky ladder to nowhere. We can start to build a world around the truth that everyone matters, everyone has value and everyone has a role to play.

Together we can create a world that works for everyone.

We also recently launched an international cooperative to connect up efforts like these around the world.

Why not join us at Citizen Network?

Addendum

I voted Remain. I am a Northerner and a European. I value my friends and colleagues in Europe and am saddened by Brexit. However some of the arguments against Brexit are a bit peculiar. For instance, Hilary Benn said that we will all be demanding visa rules that enable the NHS to recruit more doctors from abroad. Maybe we will.

But I would encourage Mr Benn and others to read Sir Nigel Crisp’s excellent book on global health economics: Turning the World Upside Down. As Crisp argues, there is something very strange about a technically advanced Western nation failing to train enough doctors and instead using its wealth to pay doctors to come to the UK from their native land. We should be exporting our technology and expertise to developing countries – not inviting their experts to come and work here. Perhaps he should ask the NHS and the BMA to re-examine their restrictive employment and training strategies instead.

Inequality is Inefficient

Over the past few decades inequality in the UK has grown considerably, by whatever measure you choose. After World War II, at the birth of the welfare state, inequality was at a very low level. Over time we’ve come to accept very high levels of inequality. In just a generation it has doubled.

And the UK is an extreme case. It is now the most unequal country in Europe. A land that prided itself on its sense of fair play seems to have readily abandoned the notion of a fair distribution of resources. It would be fascinating, in a rather disturbing way, to explore why the UK has been so particularly negligent of equality.

Often the explanations offered for inequality are economic. However it is particularly important to recognise that inequality is political, not economic. It is a social and political choice to accept or encourage high levels of inequality. Society can choose to control inequality – if it wants to. However the political nature of inequality is often wilfully ignored and inequality is often presented as being merely a matter of economics, as if economics was some natural and uncontrollable force, quite distinct from human decision-making.

Inequality is neither inevitable nor necessary; but this truth has been perhaps obscured by a rather different debate. Often the debate about inequality is confused with the debate about the role of the state in the economy: the conflict between dirigisme and the free market.

Now it is certainly true that some advocates of equality do believe that it is only possible to create equality if the state takes absolute control of the economy. Opposing them are advocates of extreme economic liberty who argue that any economic control is bad, taxes are theft and that the inevitable inequality that arises from free economic activity is utterly justified. In fact both sides share the same false view that there is no way to reconcile equality and freedom; instead they both believe we are forced to choose: so the Left choose equality, while the Right choose freedom.

But this is crazy. We need both freedom and equality. Even in economic terms we need a significant degree of freedom and of equality simply in order to make our economic system work:

  • Without freedom economies don’t develop: investment, risk, failure, success, learning and innovation all depend on our freedom to spend our time and money on things we value, even when others don’t.
  • Without equality economies don’t grow: fewer and fewer people have the resources necessary to purchase, consume or invest. An economy with only one consumer or only one producer is dead.

Even more importantly freedom and equality are not just economic variables. In life we need to be free, free to define a life of meaning for ourselves; and we also need to be an equal, valued as an equal member of the community. We reconcile freedom and equality by creating decent communities where we work together to create a better world for everyone.

One aspect of any decent community is that its members work hard to create the necessary conditions to achieve both freedom and equality. And, there are many ways to do this, ways that can combine a significant degree of economic freedom with a reasonable level of economic equality:

  • Create shared goods that are not distributed by the market, for example ensure everyone has access to high quality healthcare rather than making people pay for it.
  • Redistribute income, increase benefits to increase the incomes of the poorest, and increase taxes to reduce the incomes of the richest. Currently the net cost of benefits (benefits after tax) is very low indeed, hence the UK’s high level of inequality.
  • Exercise self-discipline when rewarding people for their work; keep the ratio between the best paid and the worst paid as low as possible. For example, Plato recommended a ratio of 1:5, but in the UK welfare state the best paid civil servants earn 50 times the average income of the poorest 6 million people.
  • Disdain greed and excessive wealth and encourage values that focus on other dimensions of human life. For example, Pericles, the great Athenian leader, suggested their society was best because it did not value people for their wealth, it measured people by their contribution to community life.

However interest in these disciplines is very low in the UK today. Redistribution is now treated with suspicion and excessive rewards for the rich are treated as the inevitable price to be paid for economic progress. There are many arguments of detail here and much evidence that can be provided to challenge the arguments for injustice and inequality. However I want to add just one argument, an argument from economics itself. I’m sure it’s an argument that someone else has made before, but I cannot remember seeing it, so I thought I’d try and outline it here.

Before I begin I’d like to distinguish my argument from two other important and valid arguments:

  1. Inequality is harmful – This argument has been made most effectively by Wilkinson and Pickett, and in great detail. In essence they have correlated economic equality with many other things that we find valuable and discovered that there is strong link between equality and many aspects of a decent society (better health, lower stress, less crime etc.). They show that inequality is bad for everyone – even the rich.
  2. Inequality is sub-optimal – This argument is often made by utilitarians and it rests on an observable truth. When you get something you want you feel some benefit; but the more you get the less you feel any increase in the benefit you get. Our desires are increasingly sated. Given this truth then the best distribution of any limited set of resources will be the most equal one. Inequality reduces the total level of happiness.

But the argument I want to offer is slightly different to these. I want to argue that inequality is also very inefficient.

At its simplest my argument is as follows. If I have a limited amount of money and I want to get the maximum amount of work done then paying people equally will maximise the amount of work that gets done. However, if I choose to pay some people much more than others then I will have to reduce the total amount of work I pay for.

This may seem obvious, but it’s perhaps worth underlining the point. Currently the false belief is that inequality is economically necessary – here I want to propose that inequality is inherently inefficient – in economic terms.

Imagine the distribution of salaries as a polygon. An equal distribution would be a rectangle, with salaries on the y axis and the volume of time purchased on the x axis. If some people have a higher salary then the polygon will be equivalent to a rectangle, with a right-handed triangle on top. Total spend is therefore equal to the volume of the shape.

Now if you assume that you have a fixed amount of money to pay for people’s time then the most efficient shape will be the rectangle. The more unequal the distribution then the higher the peak of the triangle and the shorter the width – in other words the less time you can buy.

In fact, if we make certain simplifying assumptions we can even calculate the level of inefficiency of increased inequality. If we describe the relationship between the base salary and the top salary as a ratio we find that efficiency is measured by the following formula:

e = 2 ÷ (R + 1) where R is ratio of base salary to highest salary

  • 1:1 means absolute equality and this has an efficiency of 100%
  • the 1:5 ratio was recommended by Plato this has an efficiency of 33%
  • public sector salaries are at a 1:15 ratio and have an efficiency of 12.5%
  • the ratio between the poorest 6 million citizens and the top civil servants is 1:50, which means that the welfare state has an efficiency of 4%

Now this exaggerates the size of the inefficiency. In practice the upward slope will be a long convex curves. Lots of people are on low salaries, fewer are on high salaries. However the basic truth remains, the higher the ratio the greater the level of waste.

Of course critics of equality will argue that we need inequality to buy the best. But this is a double fallacy. Of course, once you’ve allowed inequality to run amok, then you surely will have to spend more on some people to get them to work for you. But this is simply a side-effect of broken self-discipline: the Premier league may spend more to buy more of the better players – but it is not creating better football – it is merely skewing the distribution of better football away from one country and towards another. In other words inequality in incomes merely leads to inequality in skill distribution. This is not a good thing.

The second fallacy is that it assumes you have to pay people more to get them to do more complex or challenging work. This is clearly nonsense. Primarily people choose to do such work because it is intrinsically interesting, suits their talents and brings with it many other rewards. The things you should really have to pay people extra money to do are those things that are dirty, smelly and tiring (the things that in the real world people are paid less to do). If inequality has any real purpose it should be to compensate people for doing intrinsically unrewarding work.

The reality is that inequality suits those with the power to dictate the distribution. It is not the poor who set the salaries of the rich. Power – economic and political – is at the root of inequality. And power will be necessary to challenge and reverse it. The reason why inequality was low after World War II was that the poor had a lot of power and the rich knew it. Today the rich know the poor are weak and they exploit that fact.

Rebalancing things will take more than vapid debates about the state versus the market. It is not the market which is the real threat to equality, it is our low opinion of ourselves. If we choose to measure ourselves in terms of money then the state will not protect us, it will just adapt itself to our own low standards. We should instead choose to see ourselves as citizens who are worthy of equality – not because we are all worth the same money, but because money measures nothing of value. We should seek economic equality, not to pull anyone down, but to pull everyone up, to a higher level, to the status of an equal citizen.

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