Archive for the 'Economics' Category

The Left and Economics

June 20th, 2010

My good friend Rob Salmond has written an excellent post over at Policy Progress about the importance of the political left talking about economics.

If folk on the left are to challenge the caricature that they are economic illiterates swimming against the tide, we need – all of us – to confront economic issues much more directly.

Rob is of course right.  But how has economics somehow become a dirty word to many on the left? It seems to me that the motivating drivers for the involvement of most on the left of politics are equality, fairness and social justice. In turn this seems to have meant for many that discussion focused on the direct mechanisms for achieving this through social policy. The point  of course is that economics matters for those values as much as those social policy factors.

As someone who did not study economics to any great degree I have in the past found myself put off from studying economics, partly on the basis of buying into some of the stereotypes about where many economists are coming from. But as Rob (and others in the comments on the post) points out there is some great work underway, some of which has been discussed here, such as the work of Stiglitz and Sen on genuine progress indicators or Wilkinson and Pickett’s The Spirit Level. These people’s work can not be dismissed by the right, and it must be understood by the left.

I was also interested in Jordan’s comment on Rob’s post when he asked

how can we who do have an understanding of economic policy debates and principles and the implications for our politics and our societies, make that more exciting – to the extent it’s the main focus of debate and campaigning energy inside our political movements?

I don’t know the full answer to that question, but I am sure that a part of it is talking about economics as part of the package of progressive politics, rather than in isolation.   The direct links need to be drawn between social progress, environmentally sound development and the economic ideas that underpin them.  Its no different than anything else in politics- there needs to be a vision and a believable and relevant narrative to go with it.

In any case, for those who are interested there are a number of links in Rob’s post and the comments that go with it that provide loads of references to some exciting progressive economic ideas.

Key Government: All Map, No Compass

November 30th, 2009

If I was a betting man (which in fairness I am at the races from time to time) I would put my money on John Key going to Copenhagen.  As Audrey Young points out

Attendance of leaders has become a matter of symbolism, a symbol of commitment to a positive outcome. Key looks like that is not important to him.

But that will be the only reason he goes. Not because he believes that the world desperately needs to come together to address a major environmental issue, or that for the future of New Zealand and our region we desperately need to be part of a positive solution. Goodness, earlier in the week Murray McCully was complaining about climate change taking too much time at CHOGM. Earth to Murray, its kinda the biggest show in town right now.

My prediction is that Steven Joyce will tell Key the optics look bad, and he had better get over there. I am sorry to sound so cynical but this is a bit of a pattern.

Today John Key has dismissed the 2025 taskforce report, in part on the basis that National needs to keep its promises to the electorate on keeping Labour programmes such as Working for Families and Interest Free Student Loans. Great, but we all know what Key and National actually think of those programmes- “communism by stealth” anyone? Its not that Key actually believes this is socially responsible policy, he’s just stuck with it.

Returning to Copenhagen the risk for New Zealand is that all this naked pragmitism is going to be seen as just that. Again to quote Audrey Young

No one will give Key credit for parachuting in for a photo-op once others have done the hard work

Therein lies the problem for New Zealand. Beyond any straight environmental motives, from an economic point of view being dragged kicking and screaming to Copenhagen is a terrible look for an isolated trading nation that has prided (and marketed) itself on its clean green image. Its probably already too late on that score.

I accept that John Key’s pragmatism is playing well with New Zealanders at the moment. Its all very well having good political anntennae, but the long term future of New Zealand suffers if you don’t have a plan as to where you are going. All map, no compass is a very bad recipe for New Zealand.




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