We have nothing to fear but the fear of Brexit itself

British people are being told that there are two ways to approach Brexit, and they have to choose between them. An ideological way or a pragmatic way. Guided by formal principle or by practical necessity.

Catherine Barnard, professor of European Union law at Trinity College Cambridge, described the apparent options as follows: ‘You either have to prioritise sovereignty and domestic control, which has very significant economic costs; or you have to be more pragmatic and put a priority on your economic interests. A decision will have to be taken.’

So this is a stark choice, apparently, between sovereignty and economic livelihoods. The implication is that people shouldn’t be so stupid as to bring on economic deterioration resulting from a stubborn attachment to something as pretentious as wanting to ‘take back control’ over their nation and lives.

It is important that we cut through this presentation of Brexit. Read the full article here.

 

Sorry, Corbyn, but ‘anti-austerity’ is not enough

Another unexpected election result, this time brought about by Theresa May’s patronising, ill-considered and visionless campaign, invites traditional as well as new thinking. And when an election outcome is inconclusive, it becomes even easier to read into it your own established opinions. One interpretation, as suggested by Labour Party figures in particular, but also by some Tories, is that this was a vote ‘against austerity’. Of course, many people have in recent years been experiencing more sharply the material effects of our longest economic depression. But it is fanciful to assess the result as a positive vote against austerity.

Read the full article here.

May’s industrial strategy will fail unless it clears out zombie firms

My opinion piece for City A.M. arguing that in order to generate a new dynamic for economic growth, government has first to stop propping up the zombie economy. The application of many regulations, of government spending and procurement policies, changes to insolvency rules, easier monetary policies – all these and more have acted to support incumbent businesses. The full article is here.

Foster new sectors

I have submitted a Response to Questions 1 and 2 in the Green Paper Building our Industrial Strategy (Department of Business, Energy, and Industrial Strategy, January 2017). The submission can be read here.

This is part of a collective submission from the Institute of Ideas Economy Forum called ‘Go for Growth’, available here.

We need big, bold economic thinking in the Brexit era

It was predicted that UK chancellor Philip Hammond’s final spring Budget would be low-key and short on exciting announcements. Cautious and careful was the expectation. Leaving aside for a moment the row over tax increases for the self-employed, these expectations were broadly met. But that doesn’t mean the Budget was an insignificant event.

The Budget provided a revealing insight into the current state of politics.

The article is here.

The economicisation of a depoliticised public life

In my forthcoming book Creative destruction I describe the way that economic policy has been depoliticised since the 1980s. The fatalist perspective associated with Margaret Thatcher’s TINA – ‘there is no alternative’ – applied as much as anywhere to the workings of the market economy. The acceptance of TINA indicated the demise of left-right political contestation for changing and improving society through differently organised economic systems.

Politicians of all stripes embraced this TINA outlook and reduced the scope of economic policy to managing the economy. The primary goal was ensuring stability. Much of this management function was assigned to technocrats, including souped-up regulators, expert-led commissions and central bankers. This outsourcing by politicians of their economic responsibilities to unaccountable bodies and institutions reinforced the conservationist, status quo orientation of economic policy that has proved so damaging to economic performance. Pro-stability measures have tended to stunt the functioning of creative destruction and helped entrench our zombie economy. Continue reading

Keeping the zombie economy on its feet

On 23 January the British government introduced its long-flagged industrial strategy. It was another in a long line of disappointing launches of industrial policies. I wrote an article explaining that Theresa May’s ‘modern’ industrial strategy isn’t nearly enough to boost productivity. Moreover, government economic policies that have primarily propped on the zombie economy are making matters worse. The article is here