Fourteen years ago, my colleague Richard Wilkinson and I published a groundbreaking book called “The Spirit Level.” It was a time of economic uncertainty, and we saw it as the perfect moment to present a new approach to macroeconomic policy. Our goal was to reduce inequality, improve human well-being, and protect the environment. Unfortunately, the subsequent Conservative governments chose a different path, prioritizing political ideology over economic literacy.
Their policies of cuts and punitive social security and tax measures have only served to benefit the wealthy minority. As a result, our country has become poorer, weaker, and more divided. Life expectancy has declined, child poverty has risen, and inequality has grown. It’s clear that the pain is only getting worse.
But disruptions like the financial crash present opportunities for new ideas, and it’s crucial that progressives seize these moments. If we don’t, the narrative will be shaped by those with less socially-minded intentions. Unfortunately, in 2010, Labour lost the argument, and I fear they may lose it again.
That’s why I joined 70 other economists and human rights experts in writing a letter to Sir Keir Starmer, urging him to reconsider his current economic vision. My concern is that he’s about to commit our country to several more years of economic suffering. Moreover, I worry that he’s closing the door on an unprecedented opportunity to reshape the economic agenda.
Recent polls show that the public believes austerity has failed and weakened our public services. Starmer and other politicians need to capitalize on this opportunity for change instead of reversing it. While other countries are exploring innovative ideas like doughnut economics, well-being economics, and universal basic income, it seems that Britain is heading towards another period of austerity.
We don’t have to look too far back in history to see how differently things can turn out. After World War II, Britain faced economic devastation. However, they followed the vision of John Maynard Keynes and implemented generous public spending to revive the economy. They also established a social safety net to ensure everyone could lead a decent life. This collectivist mindset shaped the political and economic agenda of the time.
Sadly, that spirit of compassion has been largely forgotten in today’s politics. Philip Alston, the UN’s special rapporteur to Britain, described the country’s approach as “punitive, mean-spirited, and often callous.” Policies like the benefit cap, two-child limit, bedroom tax, and extensive use of sanctions embody this approach. It’s disheartening to see that Labour seems trapped by an empty and destructive economic argument, mirroring the Conservatives’ approach.
Instead, this period of opposition should be an opportunity for Labour to shape the public narrative on the economy. They can explain how spending benefits everyone and stimulates the economy. They can make the moral case for progressive taxation, debunk the myths surrounding the national economy, and emphasize the importance of social security.
In our letter, we not only urge Starmer to do better, but we also extend an invitation. We understand the challenges of balancing politics and economics, and we’re willing to be allies to any party that is committed to change. We hope Sir Keir takes our offer seriously.
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