I grew up under Margaret Thatcher, loathed and loved in almost equal measure. I got to vote in a UK general election for the first time in 1997. The election was won by Tony Blair and the era of Blairism. Since then real take home wages for typical everyday workers have essentially flat-lined, whilst the economy has risen in pure GDP terms, yet for most Britons living standards have declined, though masked to an extent by the rise in computational power and the internet. Today Joe Biden has won the US presidential election, defeating Donald Trump (loathed and loved in almost equal measure). Have we gone full circle? Both the UK and the US have not reformed our democracies, maintaining two party systems in an era when two party systems are no longer serving democracy.
How did we get here? From 1945 to 1975, the UK and the US experienced Social Democracy, the post-war consensus. A period of growth, rising living standards and where take home wages rose with economic growth. The mid 1970s saw an oil crisis, rampant inflation and the steady rise in living standards came to an end.
By the late 70s, people were fed up with their governments who seemed unable to deal with what had happened in the 1970s. The US voted in Ronald Reagan and the UK Margaret Thatcher, heralding in a new era of Thatcherism and Reaganism, or laissez-faire economics, where all political power was given to capital and a belief in the supremacy of financial markets and market-based solutions. It kind of worked for a while, national assets were sold off, infrastructure was not maintained and that money bought off normal people with tax cuts, normal people who didn’t notice that the gains from tax cuts were being swallowed up by rampant housing cost inflation and in the cost of living, such that peoples net disposable income did not increase, apart from some unsustainable wealth gains for the middle class, who had lucked out by buying houses when they were affordable prior to hyper-inflation of housing.
Since around 1980s, there has been a Thatcherite/Reaganite consensus. Conservative parties argued for taking it ever further and further than Thatcher herself would have and argued that Social Democracy had failed. Left wing parties, tainted by this apparent failure of Social Democracy lost confidence. It can be argued that there was a period up to the global financial crisis of 2008, where things seemed to be going ok, where concerned voices were ignored. Voices for change for solutions to our systemic problems were marginalised; The real economy doesn’t matter because we can just keep borrowing money from the future.
Essentially there was a period where the Left-Right dynamic of these two party systems was about appealing to what was perceived as being the political centre ground between the two main political parties. Leaders were careful to be bland and inoffensive to appeal to soft supporters of the other side. However it meant that the real concerns of ordinary people were left unaddressed by the political system and opposition to this cosy political establishment has perhaps grown.
The problem for this opposition to the political establishment and the multi-national corporate world it supported was divided. We have this legacy from the Left-Right political spectrum, so opposition is marginalised between those identifying between the Left and the Right. Thus antagonism and even culture wars began between the left and right, leaving the political establishment to carry on and smugly grin “the fools fight among themselves”
The lassez-faire capitalism of rentier capitalism, where capital is used to suck in more capital for itself with little to no investment in infrastructure or the real economy has begun to lose the support of middle-income earners, because by now middle income earners were losing out too. People have been looking for someone to offer a solution.
The Left still had Social Democracy, it was perceived as being tarnished and the political establishment has been successful at branding Social Democracy as the problem. The right had nowhere to turn to either, traditional conservatism was ignored, the power of capital entrenched by the free market myth had replaced traditional conservative values.
There was a political malaise, turnouts at elections were falling as people felt that politicians of red or blue were basically the same, feathering their own nests. It seemed a tipping point was crossed, instead of trying to take votes from the other side, a better strategy was to campaign at your base, to raise turnout among your supporter base and to not care about trying to appeal to unity and the other side, especially if they didn’t have an alternative to turn to they were comfortable with.
So along comes Brexit and Trump, offering a populist solution, a possibility a hope of a way back to the growth in living standards provided by the Social Democracy era, but perpetuating the myth that Social Democracy itself was flawed. Those on the right of politics flocked to it. Brexit won the Tories in the UK a general election and the Brexit referendum. In the US the reality TV show tycoon, Trump won the presidency.
For the left on the other hand the argument being that Social Democracy stripped of it’s pragmatism had become Blairism, with only right appealing policies whether they were any good or not (such as PFI) as a means to win the centre-ground meant that it’s very definition had been usurped, so the only way forward was a lurch to the left and ever truer and ever perhaps less practical forms of socialism.
The right on the other hand had a chance to rid themselves of the ever centralising big government institutions they have long wished for.
The problem the left has with Brexit and Trump is that whilst they offer getting rid of something they does not serve them, it offered no actual alternative. There was no plan for the UK post-Brexit and there still isn’t and neither did Trump apart form a lot of hot air and divisive rhetoric. It seemed that the argument was merely exiting the EU would magically solve all of the UKs woes, which is incredibly naive.
Coupled to this situation was a change in how the political class dealt with the media. The empty words of the political class, the avoidance of answering questions (in the 70s and 80s politicians actually answered questions), let alone debate grew. That chimed with neglected demographic on both the right and left, the downright lies of Brexit and Trumpism appealed to the right as being a solution to at least mix things up for a change. The problem was the political establishment, but the supporters of Brexit are the political establishment, so they had to create the myth that it was the other lot, those who are not in power as being to blame. The campaigns successfully scapegoated Social Democracy yet again, despite the UK not having had Social Democacy for now approaching 40 years. Further bolstered smears and hatred towards whomever was the scapegoat of the day. The left divided into splinter groups, those that want something done about climate change, or racism, or poverty, rather than a unifying creed. There was no party to unify the left, just an ever growing list of causes of growing urgency.
The Left has lost it’s popular appeal as an appealing dogma to the working class, despite it being the political creed that most favours this demographic economically. The left’s leaders are university educated, used to nuanced arguments, the ‘libtards’ who don’t have a nice simple message, because the economy is complicated, life is complicated. This has turned away working class support. Yet the left isn’t really left or socialist anymore, it’s the whole swatch of opinion from far left to centre-right. The centre ground has shifted so far right by Thatcherism/Reaganism and been so distorted by the ‘free-market’ dogma of Thatcherism. Paradoxically it has seemed the left doesn’t even have a unifying dogma to rally the troops anymore
We are kind of back to the late 1970s position, we have struggling economies, built on mountains of debt to the world of finance. People want a solution, but there seems no ready political philosophy, no new solution and a political class who seem ever more out of touch with the economic realities of ordinary citizens.
We’ve just had an election in the US for a new president, won by Joe Biden, with a simple message of hope and truth. Is this the end of the populist Brexit phase? Despite the euphoria on our television screens, is not Biden simply another establishment, middle way, safe pair of hands, a former Vice President to soften the blow of our crisis, rather than tackle the real problems? It’s hard to see supporters of the right of Trump and Brexit getting behind a bland steady the ship offering once Brexit and Trump are seen for the empty shams that they are. I should add this equally applies to Keir Starmer. But then if Biden can now win simply on competence and not being a figure a fun, then perhaps Starmer can too? These new leaders don’t really offer solutions on the scale we need (though we should give Biden a chance). People need to pile the pressure on the political class to get stuff done. We seem to live in a world where politicians don’t lead but are led kicking and screaming by campaign groups to getting the simplest of things done. Perhaps we should keep massive pressure on the political class until they realise that people are not going to shut up unless we are assured they really are getting on with what they are elected to do, govern us in our interests.
For democracy to work, to do it’s simple job of picking the best decision makers from a list of candidates we need to perhaps do a couple of things:
No.1 Expand the list, reform democracy and get away from two party politics, where the choice is between terrible and even worse. Allow people to vote positively for someone they believe in that they can trust, rather than fear of the ‘other guy’. We need serious electoral reform on both sides of the pond.
No.2 Ditch political dogma, of left and right, of socialists and conservatives. Political dogma is relative. If a society’s economy is too left wing, then you need predominately right wing ideas to be the solutions and vice versa. The idea of things needing to be more right and more left are relative to the state of things, they are merely ideologies in themselves and dangerous if pursued to their extremes. Practical solutions should always trump those that arise from political dogma or a slavish following of doctrine.
I think that if the UK and the US can do these two things, it will transform our societies into true democracies, where losing an election doesn’t lead to four years of trauma for over half of the population and society in retreat but instead leads to change we are all mostly happy with, because everybody will get a share of the pie and a reward for their hard work, everyone will be better off.
Let’s see the light, that allowing the capital of huge unaccountable financial to suck away all the wealth we all generate through work isn’t a sustainable economic situation, to acknowledge that Thatcherism/Reaganism is simply another dogma that has inevitably failed, we need to move on. That there are not good and bad people, but simply people who can help and those that need help. The less people there are who need help, the more work that gets done. The more that gets done the better off we all are. It really isn’t rocket science. We just need political systems that facilitate productivity, and work against, rather than for, systems that reduce productivity. To get there we need a better representative democracy that works for us rather than against us.
There are so many parallels between support of Brexit and Trump, by mass appeal to their base on a promise of hope. Now that Brexit and Trump have been exposed as a sham, it seems that people are prepared to get off their arses and go to the polls and say no, no to this divisive crap which doesn’t solve one problem.
What will emerge from all this will be interesting and hopefully, finally turn things around and we can start raising living standards once again.