There is no more pressing issue in British politics than that of the future relationship of the UK to the European Union, and therefore no apology is required on returning to the subject.
The Labour Party has taken a huge step towards rationality on that matter over this Bank Holiday weekend by making a new and very different statement on its policy. Under the new Shadow Secretary of State for exit, Sir Keir Starmer, they now accept that it would be essential for there to be significant transition period during which the UK would continue to enjoy the comfort of being within the European Economic Area [though out of the political Union, in deference to the referendum resut]. This would be at the expense of keeping the country under the jurisdiction of the European Court, and obliged to accept the free movement of people with the EU. Starmer can claim to be far more traditionally Labour than the public schoolboy Jeremy Corbyn, because his working parents named him in honour of Keir Hardie: an early Labour leader. If discussions during the transition can include the resolution of the two difficult issues of free movement and the extent of the powers of the European Court, Labour holds out the prospect that the 'transitional' could become the permanent basis for the relationship of Britain to the EU: while the country would be able to make additional pacts on trade with other countries provided the conditions for retaining membership of the European Economic Area are maintained.
This presents a package on which Labour can make a strong bid for the 'middle ground' of politics, and knocks any idea of the LibDems forming the core of a strong new 'Centre Party' right out of the picture. Corbyn's caricature student-leftery can virtually be ignored if the party continues to promote rational 'moderates' [with good political credentials] to shadow posts. Pro-EU Tory MPs - who formed the vast majority at the time of the referendum, and who have been largely ignored since Mrs May's 'conversion' to hard Brexitry - should be really scared, to the extent that they should now make clear their reservations about the tone of Cabinet policy, in view of the fact that Labor has displayed a capacity for rationality.
Also in recent days, Professor Patrick Minford has obtained publicity for his view that a 'hard Brexit' would be beneficial for the United Kingdom. According to his ultra-Econocratic model of the economy, Britain would gain massively by being completely outside the European Union [including all aspects of the European Economic Area], with a GDP at least 6.5% higher than is being achieved within the union. This rests on the assumption that the country could trade on a completely level playing field with all economic entities in the world; according to his model of a market economy whose participants operate on the basis of 'rational expectations' of each others' actions conforming to the psychological assumptions that are implicit in the model. Professor Minford achieved prominence when he supported extreme Thatcherism against the majority of the then-still-NeoKeynesian 'economics profession' in 1981. For a while he had the Prime Minster's favour, though he was eventually palmed-off with a CBE.
The fruits of Thatcherism are here for him to see, and to input into his model [which is now even more comprehensively Econocratic]: desperately low productivity, nil productiveness, a massive deficit on public spending, a constant deficit on the balance of payments, over-dependence of the economy on the service sector and on consumers spending borrowed money. To that catalogue of the achievements that are ascribable to the policies that he recommended to the Thatcher government, we can be sure that after a hard Brexit the UK would find that there was no permanently level patch on the playing field of global trade. Point protectionism [as mentioned several times in this blog], combined with long-term protectionism of favoured sectors in virtually every economy on the planet will ensure that a naked Britain, alone in the wicked world - which still remembers the slights from the British Empire of the past - would be nothing like the heroic entity in the professor's model, and the irrational prejudice which is more common in global statecraft than anything like Minford's 'rationality' would ensure that the model could not work. The limit to the Econocrats' world view is seen in the fact that real people have not vanished from the villages that surrounded the closed coal mines: they stay as second and third generation malcontents whose habits undermine their health, while they survive on a combination of low wages from non-productive jobs, state benefits and borrowing.
Keit Starmer is well on the way to producing a rational and humane model of Brexit for the Labour Party. Patrick Minford is trying to power the nutty Tory Brexiteers along a path that would enable
them massively to intensify the range and extent of the problems that already confront the real-world population of this benighted country.
Economics is fundamentally unscientific. The economic crisis has speeded the shift of power to emergent economies. In Britain and the USA the theory of 'rational markets' removed controls from the finance sector, and things can still get yet worse. Read my book, No Confidence: The Brexit Vote and Economics - http://amzn.eu/ayGznkp
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Showing posts with label European Court. Show all posts
Showing posts with label European Court. Show all posts
Sunday, 27 August 2017
Monday, 14 August 2017
Brexit: Trouvez la Femme
So now we know, for sure; definitely.
As on the previous Sunday, when I went to get a copy of the Mail to check on the context of remarks by Vince Cable, so yesterday I bought the Telegraph so that I could read exactly the piece attributed to Philip Hammond and Liam Fix. It was cited on the radio as representing the formation of a joint strategy for Brexit, and thus the conclusion of a cabinet spat that has been reported over this year's 'silly season' by much of the media.
It was a short piece, attributed to the two men [and doubtless accepted by them] but indubitably crafted in 10, Downing Street, and polished by party professionals. It represented what had generally been understood to be Mrs May's position ever since she made her sublimely idiotic remark that "Brexit means Brexit". Since it was coined, derived from 'Grexit' which meant the threatened departure of Greece from the eurozone, the term Brexit has simply meant "the departure of the United Kingdom from the European Union, in response to the referendum decision of 23 June 2016". Mrs May was asked how she interpreted the terms: did it mean withdrawal from the European Common Market and the Customs Union? Did it simply require departure from the political institutions only? What mix-and-match of possible options did she favour?
None of this has been clear: either in her much-cited 'Lancaster House Speech' early this year or in her disastrous election campaign. Nor has it been any clearer whether she favours a 'hard Brexit' [undefined] or some 'softer' version. Two things that do appear to be consistent in her few and often oblique remarks on the matter are:
1. Her proclaimed determination to reduce net immigration: the great 'failure' of her six year tenure of the Home Office which she apparently thinks she can achieve from Number Ten. If she does achieve it, she will alienate industry and commerce, the universities, and the immigrant communities from the Commonwealth who had seen a reduction in EU immigration to the UK as a chance for them to bring more friends and family members into the country.
2. Her equally definite declarations that there is no place in the UK post-Brexit for the European Court are equally likely to make for an extremely difficult negotiation with M Barnier on trade matters that should be straightforward.
Lewis Carroll, in one of the most brilliant satires on society, has a character declare that they can think of six impossible things before breakfast. Mrs May, without saying anything on those lines, has made it abundantly clear that she has one impossible thing on her mind all the time: the removal of the British economy from its European Economic Community context without significant damage to Gross National Product or to the standard of living of the mass of the nation.
It now appears that Fox and Hammond have accepted that they must both support this point of view, at least publicly and for time being. This is a consensus that cannot last. The crisis in British politics will continue: well done, David Cameron, Nick Clegg and Odious Osborne!
As on the previous Sunday, when I went to get a copy of the Mail to check on the context of remarks by Vince Cable, so yesterday I bought the Telegraph so that I could read exactly the piece attributed to Philip Hammond and Liam Fix. It was cited on the radio as representing the formation of a joint strategy for Brexit, and thus the conclusion of a cabinet spat that has been reported over this year's 'silly season' by much of the media.
It was a short piece, attributed to the two men [and doubtless accepted by them] but indubitably crafted in 10, Downing Street, and polished by party professionals. It represented what had generally been understood to be Mrs May's position ever since she made her sublimely idiotic remark that "Brexit means Brexit". Since it was coined, derived from 'Grexit' which meant the threatened departure of Greece from the eurozone, the term Brexit has simply meant "the departure of the United Kingdom from the European Union, in response to the referendum decision of 23 June 2016". Mrs May was asked how she interpreted the terms: did it mean withdrawal from the European Common Market and the Customs Union? Did it simply require departure from the political institutions only? What mix-and-match of possible options did she favour?
None of this has been clear: either in her much-cited 'Lancaster House Speech' early this year or in her disastrous election campaign. Nor has it been any clearer whether she favours a 'hard Brexit' [undefined] or some 'softer' version. Two things that do appear to be consistent in her few and often oblique remarks on the matter are:
1. Her proclaimed determination to reduce net immigration: the great 'failure' of her six year tenure of the Home Office which she apparently thinks she can achieve from Number Ten. If she does achieve it, she will alienate industry and commerce, the universities, and the immigrant communities from the Commonwealth who had seen a reduction in EU immigration to the UK as a chance for them to bring more friends and family members into the country.
2. Her equally definite declarations that there is no place in the UK post-Brexit for the European Court are equally likely to make for an extremely difficult negotiation with M Barnier on trade matters that should be straightforward.
Lewis Carroll, in one of the most brilliant satires on society, has a character declare that they can think of six impossible things before breakfast. Mrs May, without saying anything on those lines, has made it abundantly clear that she has one impossible thing on her mind all the time: the removal of the British economy from its European Economic Community context without significant damage to Gross National Product or to the standard of living of the mass of the nation.
It now appears that Fox and Hammond have accepted that they must both support this point of view, at least publicly and for time being. This is a consensus that cannot last. The crisis in British politics will continue: well done, David Cameron, Nick Clegg and Odious Osborne!
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Saturday, 12 August 2017
Not Another Party, Please!
When it looked as if Jeremy Corbyn was leading Labour to the expected [and deserved] electoral catastrophe a couple of months ago, siren voices were calling for a split in the party; which could lead to the 'moderates' joining up with the LibDems and hoping to attract some Tory Remainer MPs; and thus forming a coalition that could reverse the Brexit decision. The depth of politicians' squalor was again confirmed when Mrs May lost the election and Labour was beefed-up as being a potential governing party. So, although Labour MPs are viscerally split between those who are keen to compromise with Corbyn and those who know him for what he is [an unreconstructed Marxist who has a wide range of casuistic devices], the party has been held together by the fragile cement of ambition.
Subsequently, other voices have been raised - now, within the Tory ranks - hoping to cobble together an anti-Brexit coalition. As with the SDP, it would be impossible for such a party to gain traction with the electorate; even if they had a period of years available to make the attempt. As it is, the Brussels clock is ticking down to March 2019; and the chances of getting Mrs May to understand anything of the ruin to which she is driving the nation are minimal. There is not time enough to reconfigure British politics, or to educate the prime minister.
The great majority of MPs, mostly with regret, accept that the referendum vote was decisive. The question was whether the UK should "leave the European Union" or "remain in the European Union". There was no definition of the European Union. It was left unstated whether the European Economic Area, or the European Economic Community [the common market and customs union] - as Mrs May now says is inextricably the case - were included in the vote. This is the basis on which honest men and women who accept the referendum result can legitimately believe that the vote was to withdraw from the political aspects of the EU - the Parliament, the Commission and the Court - but not to undermine the economy by withdrawal from the economic area.
From everything that I have heard and read in recent weeks, there could well now be a strong majority of the electorate in favour of splitting the economic from the political aspects of the Union. The Economic Community pre-existed the Union, and membership of that club was clearly accepted in the referendum on withdrawal that was held under Harold Wilson's premiership. The electorate was not allowed an opinion on the transmutation of the Community into the undemocratic morass of Brussels under the nomenclature of the Union [and with the intention that the Union should become 'ever-closer': which means 'ever less accountable to the people']. I believe that a national petition - a reflection of the People's Charter of the 1840s - might be the most effective way of proving to the boneheaded Brexiteers that a very clear majority of the nation is capable of making the distinction between the Community and the Union.
If that could be proven, I like to think that majority of MPs have sufficient dregs of integrity then to act as representatives of the nation, and compel the government [whether the present shoddy shower, or a coalition containing the heavily-compromised Corbyn] to make a sensible and mutually beneficial deal to remain in the Community.
The issues of the European Court and of migration would remain to be resolved; but they will be much easier to define within the context outlined above. Time is short, but there is enough time to implement this suggestion of a People's Charter, deploying the resources of up-to-date social media.
Subsequently, other voices have been raised - now, within the Tory ranks - hoping to cobble together an anti-Brexit coalition. As with the SDP, it would be impossible for such a party to gain traction with the electorate; even if they had a period of years available to make the attempt. As it is, the Brussels clock is ticking down to March 2019; and the chances of getting Mrs May to understand anything of the ruin to which she is driving the nation are minimal. There is not time enough to reconfigure British politics, or to educate the prime minister.
The great majority of MPs, mostly with regret, accept that the referendum vote was decisive. The question was whether the UK should "leave the European Union" or "remain in the European Union". There was no definition of the European Union. It was left unstated whether the European Economic Area, or the European Economic Community [the common market and customs union] - as Mrs May now says is inextricably the case - were included in the vote. This is the basis on which honest men and women who accept the referendum result can legitimately believe that the vote was to withdraw from the political aspects of the EU - the Parliament, the Commission and the Court - but not to undermine the economy by withdrawal from the economic area.
From everything that I have heard and read in recent weeks, there could well now be a strong majority of the electorate in favour of splitting the economic from the political aspects of the Union. The Economic Community pre-existed the Union, and membership of that club was clearly accepted in the referendum on withdrawal that was held under Harold Wilson's premiership. The electorate was not allowed an opinion on the transmutation of the Community into the undemocratic morass of Brussels under the nomenclature of the Union [and with the intention that the Union should become 'ever-closer': which means 'ever less accountable to the people']. I believe that a national petition - a reflection of the People's Charter of the 1840s - might be the most effective way of proving to the boneheaded Brexiteers that a very clear majority of the nation is capable of making the distinction between the Community and the Union.
If that could be proven, I like to think that majority of MPs have sufficient dregs of integrity then to act as representatives of the nation, and compel the government [whether the present shoddy shower, or a coalition containing the heavily-compromised Corbyn] to make a sensible and mutually beneficial deal to remain in the Community.
The issues of the European Court and of migration would remain to be resolved; but they will be much easier to define within the context outlined above. Time is short, but there is enough time to implement this suggestion of a People's Charter, deploying the resources of up-to-date social media.
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