Tag Archives: fairness

Beating Reform will require a new economic settlement for the working class 

Reform is on the rise. Led by the garrulous Farage, it is hoovering up votes across the country by doing one simple thing: articulating the grievances of the working classes. 

While it is generally recognised that populism rarely leads to stable government, there is a growing realisation that Reform has a point. It’s not easy, but if we look beyond their abhorrent views on race, religion and equality, they are articulating an economic critique. 

Okay, characterising it as a ‘critique’ is a bit of a stretch – it lacks intellectual rigour or depth – but Farage’s economic cri de coeur resonates with the working classes because it speaks to their lived experience. 

Reform can make the running on this because they are the only ones singing the song. 

Although GDP in Western countries has grown hugely since the 1990s, median wages have remained largely static. That’s the kind of dry economic statistic that is almost guaranteed to put half your audience to sleep while inciting the other half to argue vehemently over its causes. However, the reality of what that means is clear to see. The rich have got richer – much richer – while the poor squeak by. 

We shouldn’t be surprised to see that this leads to political unrest, but some people try to dismiss this as the politics of envy. After all, the reasoning goes, many people may be poor in relative terms, but in absolute terms, they are much richer than previous generations. So what are they complaining about? 

We also live in an unprecedented era of social mobility, in which numerous people have ascended the economic ladder, with some of them becoming fabulously wealthy. It’s self-evident, is it not, that people who don’t get ahead only have themselves to blame. 

Where the politics of envy narrative fails is in ignoring a fundamental facet of human nature, the sense of fairness. Fairness is intrinsic to human psychology – it even appears to be inherent to the psychology of other social animals such as wolves and other animals. We ignore this primal instinct at our peril. 

Is it fair that some people can afford to own several nice homes when many others cannot afford to own even one basic one? If the purpose of an economy is to allocate resources to the members of society, is it fair that some people spend lavishly on luxuries while many others watch every penny? Can we say that we live in a fair society when the poorest among us struggle to put food on the table for their families, or – that awful phrase – have to choose between eating and heating? 

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Pursuing fairness – We need change both at the top and at the bottom

The United Kingdom is a funny place.

We’ve got a royal family which controls the Crown Estates, a huge area of land, and contributes to society in a variety of ways, while getting most of its funding through the taxation system.

We’ve got a House of Commons representing, as you would expect, the general public, and a House of Lords, which is politically appointed, scrutinising our laws.

We pay people benefits to people on the basis that they are disabled rather than the fact that they may need the money and we make people who don’t meet the threshold of disability try to live on next to nothing if they can’t find a job.

We let people in charities and businesses pay themselves six figure salaries and little or no taxes, and we put sometimes quite unreasonable expectations on the self-employed.

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The bit that annoys me most about the Budget…..

It’s not that there’s more for potholes than schools.

It really isn’t that I’m going to have to pay more for my wine.

It’s something that isn’t really being picked up in the responses I’ve heard so far.

Better off people, higher rate tax payers, are getting a much bigger tax cut than those on low incomes.

That’s right. If you are  a basic rate tax payer, your tax threshold rises from £11,850 to £12,500. And while we’re on the subject, this is the annual “Tories take credit for Lib Dem idea” day. Remember how David Cameron told Nick Clegg the idea wasn’t affordable? Every year during the coalition, the Tories used to whinge like anything about having to implement this Lib Dem tax cut for the poorest. Now they just take credit for it like we never happened.

If you are a higher rate taxpayer, you won’t start paying the 40% rate until you are earning £50k, up from £46,350.That is proportionately a significantly higher tax cut than those on low incomes are getting. Sp much for fairness and helping the Just About Managing.

This, of course, is not the case in Scotland where higher rate taxpayers didn’t get last year’s rise and we’ll have to wait and see if Finance Secretary Derek Mackay repeats that this year. The Tories will create merry hell if he doesn’t as they continue with their agenda of grievance. I’d actually rather the SNP sorted public services out, to be honest.

I don’t live in a terribly affluent household, but, even so, a budget that gives us £20 or so extra a month while people are really struggling to find even the most basic housing, or to put food on the table, has got its priorities well and truly wrong.

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Have we got the balance right between fairness and equality?

The years since the financial crash have seen the 2010 Equality Act and an apparently unending stream of scandals in which firms have mis-sold products, rigged markets and exploited every loophole they could find to avoid paying tax while enhancing their managers’ pay, entailing in some sections of the media breaking the law for stories.

The Equality Act is the culmination of a series of ground-breaking laws since the 1965 Race Relations Act which have over generations changed attitudes in the UK. These laws have not prevented the stream of scandals, which come from a culture in which social constraints have eroded, so that managers can use their power to pay themselves more and justify that by growing the company however they like, including choosing which law will be applicable.

In all this the concept of fairness has been lost sight of. Everyone agrees what fairness means, but rhetorically individuals often apply it only to themselves in order to win an argument. In small children that is understandable, but growing up involves learning to see how others see things so that we can act as members of society and not just as individuals. The scandals show large organisations have been less good than individuals at learning socially acceptable behaviour. The immediate response has been to seek separate remedies for mis-selling, rigging markets, tax avoidance and media behaviour, whereas the scandals originate in managerial behaviour which has not been addressed. If the misbehaviour is not addressed, it will just find new outlets that are still legal.

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Opinion: Intergenerational Fairness: Are we really building a fair future for our young people?

The challenges that young people face today are considerably different to what the previous generations faced. The baby boomers spent much of their lives enjoying a resilient and rewarding economy, with prospects of owning a house regarded as being the norm.

These days, as a young person, it’s not even a realistic goal, let alone normal. Between 2001 and 2011, house prices rose three times faster than wages. As a double whammy, we saw the recession hit wages and young people’s employment prospects particularly hard. Whilst unemployment is dropping, too many of us know young people settling for part-time work, …

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Opinion: It’s time to concentrate on the “Fairer Society”

Liberal democratsThe main criticism of the party leadership after the terrible European election results has come from those who see themselves on the ‘Fairer Society’ wing of the party. Over the last 4 years the Conservatives in the Coalition have swung more and more to the right on the NHS, welfare and immigration, making the decision to enter the coalition more and more untenable. Liberal Democrats in Government have continued to feel themselves constrained by ‘cabinet collective responsibility’ (CCR) even as the rightward shift has undermined the Liberal Democrat position on a ‘Fairer Society’

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Putting the party’s message in a distinctively liberal context – Part 3: a fairer society

Liberal Democrat badge - Some rights reserved by Paul Walter, Newbury, UKThis is the third of three posts looking at the party’s messaging. The introductory post was published here, and yesterday’s on the economic part of the message is here ; this last and final post concentrates on the second part of the message: social justice.

The second part of the party’s message is “building a fairer society”. Fairness was, of course, the theme of the party’s 2010 manifesto, linking the four key policy platforms on which we fought the election (fairer taxes, a fair start for every child, fairer politics and a fairer, more balanced economy).

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Nick Clegg calls for emergency taxes on wealthy

Nick Clegg has told the Guardian that he wants to see a time limited extra tax for the wealthiest so that it can be seen that they are shouldering their share of the burden of the country’s economic challenges. He warned that, with the “economic war” we’re facing likely to be longer term than we thought, it wouldn’t be either “socially or politically sustainable  or acceptable” if the richest weren’t asked to pay more.

He said:

If we are going to ask people for more sacrifices over a longer period of time, a longer period of belt tightening as a country,

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What the future holds for Liberal Democrat tax policies

More economically competent than Labour, fairer than the Conservatives – that’s what many at the top of the party hope the message will be come the next general election. If the economy is not doing well at the time of the next election . However, if it is then the party will need the right combination of economic policies to support that proposition.

That is why people such as Danny Alexander are starting to sketch out possible tax policies for the next general election which will involve giving tax cuts to the least well off, paid for by taxing the richest more.

That combination …

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Visions of fairness: what the voters say they want

“Local” and “fair” are two of the most commonly used words by Liberal Democrats (and others) when trying to persuade the public to vote for a candidate or the party. On Saturday I talked about some of the evidence showing why “local” is such a powerful message, but what about “fair”?

A recent YouGov poll for Policy Exchange asked people what values they most want a political party to reflect. “Economic responsibility” came out top with 59% mentioning it and “fairness” was not that far behind on 50%. No other possible value was mentioned by more than a third of …

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Barack Obama should be more like Nick Clegg

A Republican urging Barack Obama to be more like Nick Clegg is not a combination often seen, but that is what Michael Gerson argues in his Washington Post column, in a trans-Atlantic continuation of the debate over what counts as economic fairness:

Addressing the actual causes of inequality should be common ground for the center-left and center-right – and politically appealing to American voters, who are generally more concerned about opportunity than income equality. A mobility agenda might include measures to discourage teen pregnancy; increase the rewards for work; encourage wealth-building and entrepreneurship; reform preschool programs; improve infant and child health;

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Opinion: Redefining Fairness

Our political discourse has become increasingly dominated by insubstantial ‘buzzwords’ like ‘fairness’ and ‘progressive’ to the point where discussions about politics have begun to focus less on policy differences and more on how these words are to be used. Truly, British politics has entered an era in which the works of Wittgenstein are more relevant to the debate than any properly political philosopher or theorist.

This is perhaps exemplified by the debate within our party over the meaning of the word ‘fairness’. Prompted by Nick Clegg’s Hugo Young lecture, the Social Liberal Forum (SLF) recently wrote in an article here on LDV concerning this subject, and claimed that it means:

“…that society is fairer when absolute poverty is eliminated, the gap between rich and poor is reduced and where people can rise (and fall) through the income hierarchy regardless of their starting point.”

On this definition, fairness is a question of outcomes, rather than principle. It is a term subsidiary to the moral principles that dictate which outcomes are to count as good, and which assign values to the decisions made by individuals inasmuch as they move towards those outcomes.

I am going to argue that this definition is incorrect, that it speaks to an undeveloped concept of liberalism, and that adherence to it will result in our subsumption into a Labour Party moving inexorably rightwards. I will then sketch out a new definition of fairness that aims to avoid these consequences.

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Opinion: Defining fairness

‘Fairness’ is a word often used by Liberal Democrats – but how do we define the term? Virtually everyone in politics says ‘our policies are fair, or fairer,’ but there are many different conceptions and definitions thereof; the concept of fairness to a Tory may be very different to that used by a socialist or a liberal. Even amongst liberals, there is a debate to be had.

Delivering last week’s Hugo Young memorial lecture, Nick Clegg made it clear that he thought, “Social mobility is what characterises a fair society, rather than a particular level of income equality.” and that he …

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PODCAST: Fairer? For whom?

"Coalition: Fairer for whom?" Susan Kramer and Will Straw at LDV's conference fringe

This lunchtime, Lib Dem conference representatives gathered in the staggeringly poorly signposted Hall 1B to hear a stellar lineup of Susan Kramer, Evan Harris and interloper Will Straw from Left Foot Forward hold forth on the subject of “Fairer? For whom?” – excellently wrangled by the chairman, our own Stephen Tall.

As with all Lib Dem Voice fringe events, we were there with …

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