Britain, Economic, Government, Politics, Society

How is it ‘socialism’ to say that market failure beckons on a grand scale?

CONSERVATIVE PARTY ETHOS?

Thatcher’s revolution of the 1980s led to politicians of all persuasions putting their faith in a new economic paradigm – a guarantee of prosperity for the majority, which has lasted decades. Today, however, following the ‘Great Contraction’ of 2008-2009, political parties can no longer offer that guarantee with the same level of confidence. Whilst economic growth in Britain has returned following three years of stagnation it is forecast that real wages will not increase until 2015 and will not return to their pre-crash levels until 2023. A fractious and defective energy market, in which just six companies control 98 per cent of supply, has left more than 4.5 million in ‘fuel poverty’. Extortionate rents within the inner cities have forced millions to rely on housing benefit. By any measure, this must amount to market failure on a grand scale.

The crisis in living standards is a challenge for all political parties but no more so than for the Conservatives, the natural defenders of capitalism. After Ed Miliband, the Labour leader, pledged to freeze energy prices until 2017 – and to build 200,000 homes a year by 2020 – the Conservative Party had a chance to offer its own solutions. Alas, as we witnessed from the conference in Manchester, it retreated to its comfort zone. Aided by an ever more right-wing press, speaker after speaker derided Mr Miliband as a ‘socialist’ and ‘Marxist’, as if concern at deteriorating wages were comparable to a belief in world revolution.

The Conservative Party conference failed to recognise that when Margaret Thatcher assailed her left-wing opponents in the 1980s, she did so in the confidence that her free-market policies retained popular support. David Cameron does not enjoy that luxury: polls show that some two-thirds of voters support a 50p top rate of income tax, a mansion tax, stronger workers’ rights, a living wage that is more consummate with actual day living, and the renationalisation of the railways and the privatised utilities. If Mr Miliband is a socialist, so must the public be if these polls are anything to go by.

George Osborne rebuked the Labour leader for suggesting that ‘the cost of living was somehow detached from the performance of the economy’. But this was a remark that betrayed Mr Osborne’s failure to appreciate that the crisis is not merely cyclical (a problem most certainly exasperated through his austerity programme), but structural. It was in 2003, way before the crash, that wages for 11 million earners started to stagnate.

Other than a pledge to freeze fuel duty until 2015, what else did the Tories have to say on the question of living standards? The most important announcements were the earlier than intended introduction of the Help to Buy scheme and Mr Osborne’s commitment to achieve a Budget Surplus by the end of the next parliament, both of which risk further depressing incomes. By inflating demand without addressing the fundamental problem of supply, Help to Buy will make housing less affordable, while the Chancellor’s promise of a balanced Budget is likely to be met by imposing even greater cuts to benefits and services for the poorest in our society. Osborne’s ideological fixation with the public finances, particularly in relation to interest payments on the government’s debt, ignores the greater crisis in people’s finances.

On the fringes of the party, though, there was some positive thinking. The Conservative campaign group Renewal, which aims to broaden the party’s appeal among northern, working-class and ethnic minority voters, published a strategy for the building of a million new homes over the course of the next parliament, a significant increase in the minimum wage, a ‘cost of living test’ for all Acts of Parliament, and for action to be taken against ‘rip-off companies’. Yet, there is little sign that the Conservative leadership is prepared to embrace the kind of reformist, centrist agenda that secured the re-election of Angela Merkel in Germany.

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Britain, France, Government, Politics, Syria, United States

Syria: America’s change of political tack…

BARACK OBAMA’S DECISION TO CONSULT CONGRESS ON SYRIA

The parliamentary defeat for the Government in the House of Commons – last week – over Syria, has led many to comment over the long shadow of Iraq, of poor party management by the whip’s office, and, in some quarters, of the perfidious anti-war sentiments of those MPs who rebelled against the Government’s motion. But, with the majority of the British public opposed to military action, the result that so humiliated the prime minister was simply transparent politics and democracy at work: a far cry from that which materialised when Britain joined the U.S. in toppling Saddam Hussein from power in the Iraq war.

As events in Washington over the last few days make plain, the consequences of the British veto are only just beginning to be felt. Over the past week the US had been preparing for retributive air strikes, but the equivocation of the American President was evident enough. It had been left to Secretary of State John Kerry to fulminate against the ‘moral obscenity’ of chemical weapons, while Mr Obama talked in measured terms of a ‘limited and tailored operation’ and a ‘shot across the bow’. London’s embarrassing climb-down for the prime minister could have been met with White House declarations that the US would not be deterred. But whether that bravado would have proved sustainable has now been countered by a President who insists the decision must be ratified by Congress first, even though the President had already made up his mind to take military action.

In the immediate term, America’s change of political tack is significant enough. Mr Obama has been keen to stress that the proposed action (‘limited in duration and scope’ but still enough to ‘hold the Assad regime accountable’) is not time dependant. The president talks now of a ‘surprise’ punitive strike, an answer perhaps that the operational advantages of an early strike has already been lost.

The political and legal climate will not get any easier as time moves on. Russia’s pro-Assad stance, and Moscow’s insistence of a veto-able UN resolution, along with the G20 gathering in St Petersburg this week, is surely testament to the difficulties that lie immediately ahead.

President Obama is far from assured on the support he needs. For one, Congress is not due to reconvene until the 9th of September – with the President having a week to persuade reluctant US lawmakers to support intervention. And, with the American public as equally ‘war weary’ as they are in Britain, and the dynamics of Capitol Hill unfavourable, Barack Obama may find himself in a similar humbling situation to David Cameron.

Regardless of the outcome, the President’s decision to consult Congress has far-reaching implications. As Commander-in-Chief, the President’s powers to commit the US to war will be open to interpretation. Seeking explicit legitimacy from legislators speaks volumes about his concern at the legal basis for action in Syria. A sense of isolation imploded upon by an ambivalent public and a crucial ally lost, means the constitutional balance of the US has changed with Mr Obama choosing to put the matter to a vote. Future presidents may be forced to follow his example as precedent becomes set.

The repercussions go further still. The pro-interventionist French President is also now facing demands to hold a parliamentary vote on Syria. The effects of the British decision in the House of Commons last week are spreading fast and wide.

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Britain, Government, Legal, Military

‘Legal justification’ for air strikes over Syria raises a storm…

THE BRITISH GOVERNMENT’S LEGAL POSITION

MILITARY action against Syria will be legal even if Britain fails to get a fresh UN resolution, the Government has claimed.

In a highly unusual move, the British Prime Minister, David Cameron, ordered the release of a brief summary of the Government’s ‘legal position’ for launching retaliatory strikes against Bashar al-Assad of Syria. The document is effectively a summary of the advice drawn up for the Cabinet by the Attorney General Dominic Grieve.

Former UN deputy secretary general Lord Malloch-Brown has warned that the legal case set out in the 660-word document was ‘a little tenuous’. Lord Malloch-Brown, who served as a minister in the last Labour government, said it was not clear that action in Syria would save lives – a key test in international law for using force on humanitarian grounds.

Other experts have warned the Government’s case was ‘extremely controversial’.

Mr Cameron told MPs the ‘excellent’ advice made it clear that intervention on humanitarian grounds would be legal even if, as expected, Russia vetoes a new resolution Britain is seeking at the UN Security Council condemning the use of chemical weapons by the Syrian regime and giving authority for the world to use ‘all necessary measures to protect civilians.’

The document says that without the UN resolution, three key tests would have to be met. There has to be ‘convincing evidence’ of ‘extreme humanitarian distress.’

It must be ‘objectively clear that there is no practicable alternative to the use of force if lives are to be saved’. And the use of force must be ‘necessary and proportionate’ and ‘strictly limited in time and scope’. The document says that ‘all three conditions would clearly be met in this case’ as the Assad regime had been ‘killing its people for two years’ and had repeatedly used chemical weapons, diplomacy had failed and the planned strikes were limited to ‘averting a humanitarian catastrophe’.

But Michael Caplan, QC, said ‘all possible avenues’ at the UN must first be explored before any strikes, if Russia vetoes the Security Council resolution. This could include a rare referral to full UN General Assembly to provide greater legal cover, he said.

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