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Wednesday 4 October 2023

The Inactivist State

The big story of the week has been the long-expected cancellation of phase 2 of HS2, the high-speed railway lines between Birmingham and Manchester and Birmingham and Leeds (the latter had already been scaled back in 2021). Rishi Sunak's talk of taking "tough decisions" after years of govermental dither and delay has failed to change the perception that his administration is weak and knackered, while Keir Starmer's refusal to commit to restoring HS2 to its former glory has been judged sober and responsible in the circumstances, though I doubt anyone seriously believes he will change in his mind in office as many still believe he will do over Brexit. The merits of the original plan were always highly questionable, both because the positive return on investment depended on the northern legs being delivered and because high-speed rail should be about covering very long distances (London to Leeds really was the minimum) rather than creating what is now effectively a fancier version of the Metropolitan line

The chief argument for cancellation, however, wasn't a flawed concept but spiralling costs. This has been attributed variously to incompetence, greedy bosses and inflation, but arguably the biggest issue was the gold-plating of the London to Birmingham line to satisfy voters in Conservative constituencies. Had the project started with the northern branches, the economics would look very different today and a decision to proceed with the final southern leg would have likely been positive (and if undertaken by a Labour government with no seats to protect in the Chilterns, might not have resulted in such indulgence). But this is all history and counterfactuals. What I really want to focus on is not HS2 but what this week's decision says about the capabilities and will of the state. At the 2019 general election, both the Conservatives and Labour offered a vision of state activism: the one focused on "getting Brexit done" and launching the ship of state on the ocean of free trade; the other on public investment to repair the damage wrought by austerity and a green transition to combat climate change. At the general election next year neither party will be offering a comparable vision of state activism.

The idea that a Boris Johnson-led government would be activist, leveling up the North and securing trade deals all over the globe, was always dubious, and not just because of the man's own laziness. Beyond cosplaying Churchill demanding "action this day", his record before enetering Number 10 was one of opportunistic rebranding (the London bike-hire scheme) and accepting the kudos for projects long planned before his arrival on the scene (the London Olympics and, arguably, Brexit). Insofar as he made things happen during his time as Mayor of London, it was largely by giving the green light to property developers, though the notorious garden bridge over the Thames proved (ahem) a bridge too far. Johnson has always been a conservative, albeit of an optimistic rather than pessimistic cast: in love with tradition and antiquity, substituting conviviality for social justice, and convinced that problems can be overcome by a positive attitude. Faced with the opportunity of heading an energetic state during the Covid-19 pandemic, he dithered over lockdown and oversaw a culture of indulgence and greed at the heart of government.


State activism is only an issue in a democracy when it might lead to an assault on property and power relations. For that reason, the restraint of democracy inevitably produces conservative governments whose chief feature is a reluctance to undertake anything novel coupled with energetic maintenance of the status quo. When they display activism, it tends to be in those areas that do not threaten to advance democracy, and often act as a bulwark against it, such as defence spending and the criminal justice system. New aircraft carriers and jails are no less activist than new railway lines and hospitals, but while the latter are seen as the response to a public demand, the former are not, even allowing for the media's determination to ventriloquise one. For all the differences in style and rhetoric, four of the last five Conservative Prime Ministers have shared a common characteristic in their aversion to state activism, while the one exception, Liz Truss, was unceremoniously booted out of office when she tried to actively manage the economy. 

Cameron and Osborne's (and let's not forget Clegg's) austerity was inactivism as a government-wide standing order. The purpose was not to shrink the state but to weaken it and allow it to degrade. The vision was that this would encourage people to reduce their reliance on public services and thus walk away from the state's "teat", a vision that also inspires Rishi Sunak, a man who doesn't appear to have ever used a public service in his life. While you will still hear many claim that Jeremy Corbyn lost the EU referendum, it was Cameron's insouciance that did it, though in this he was simply continuing a tradition from the 1980s by which governments deliberately failed to make the case for the European Union, preferring to employ it as an all-purpose whipping-boy. Theresa May's activism never extended beyond the Home Office's "hostile environment", while her attempts to grasp various bulls by the horns as Prime Minister (social care, the Brexit deal) invariably led to panicked retreat at the first sign of opposition.

There are exceptions to this rule of conservative inactivism, such as when the state must be employed by capital to violently revise social and economic relations, as in the 1980s. Breaking the NUM was as much an example of state activism as the creation of the London Docklands and the market-making deregulation of the City. That phase of activism pretty much came to an end with Margaret Thatcher's fall. Indeed, her departure was arguably triggered by British capital deciding that the time for change was over (the last great achievement being the EU Single Market), hence the elevation of a Prime Minister, John Major, whose administration was characterised by careful reversals (the Poll Tax), willing subordination to markets (the ERM), and policy triviality (the infamous cones hotline). His ultimate failure sprang from his inability to restrain those parts of his party ("the bastards") who wanted the careful reversal extended to the Maastricht Treaty.


1997 presented an obvious contrast in the way that New Labour embraced activism as a style, but as history would show, the substance of its programme of "reform" was either the maintenance of order under cover of progressive rhetoric or the further pursuit of capital-friendly reorganisation. It's also easily forgotten how much Blair and Brown's message, particularly in the early years, concerned assurances of what they wouldn't do, which makes the sight of Blairites today warning Starmer over his "caution" frankly hilarious. 2024 won't be a re-run of 1997, but the offer to the electorate will be essentially the same, both in its modesty and its assumption that a change of management is all that is required. At the fag-end of Tory administrations, Labour has a tendency to talk about "wasted years", as if they would have got more done, but in reality what they are criticising is neglect - a failure of stewardship - rather than missed opportunities.

Democratic state activism, in the sense of an increase in popular control and a consequent decline in inequality, ran out of puff in the early 1970s. The result of this has been a gradual degradation in the social fabric, inadequately offset by intermittent public investment that turns out to have been primarily opportunities for new private profits (PFI and its variants). The exception that proves the rule has been London, but the basis for that has not been a metropolitan bias by central government but the relative political power of the capital compared to other cities and regions and how that can impact on people's lives, for example Transport for London. But even in the capital there is a sense of drift after the heady years of activism under Ken Livingstone (and Boris Johnson floating on the vapours of his predecessor's work). Despite the hysterical Islamophobia of the right, Sadiq Khan's tenure has been one of cautious management and a reluctance to expand the scope of the mayoralty or the assembly.

The Tories have spent this conference week claiming that they will stop various bad things that were never going to happen anyway, such as a tax on meat and the need for 7 dustbins. Many of the government's critics have derided the triviality, but this misses that the focus on such mundane matters that would (if true) affect everyone is an attempt to celebrate inactivity and thus an appeal to genuine conservative values. It might seem bizarre that this has led to the Tories insisting that the country is near broken and that only they, the party of government for the last 13 years, can be trusted to remedy this, but again this is to underestimate how persuasive a promise to do nothing can be. It is also to ignore that Labour are pitching the same message, having matched the Tories on most commitments and equally on most refusals to commit. The implication is that if the country is broken it can be fixed by changing the management team but otherwise by hardly departing from Tory practice. There's a lot more inactivism to come.

7 comments:

  1. «What I really want to focus on is not HS2 but what this week's decision says about the capabilities and will of the state. At the 2019 general election, both the Conservatives and Labour offered a vision of state activism»

    This is an article that I quite disagree with because it is based on unthinking adoption of deliberately misleading framing pushed in the USA by right-wing propaganda, in particular about the "size/role" of the state, and "hierarchy". I prefer to avoid being fooled by such framing and "follow the money!!!" and as to this:

    George Osborne: “A credible fiscal plan allows you to have a looser monetary policy than would otherwise be the case. My approach is to be fiscally conservative but monetarily active.
    George Osborne: “Hopefully we will get a little housing boom and everyone will be happy as property values go up

    David Cameron: “«It is hard to overstate the fundamental importance of low interest rates for an economy as indebted as ours… …and the unthinkable damage that a sharp rise in interest rates would do. When you’ve got a mountain of private sector debt, built up during the boom… …low interest rates mean indebted businesses and families don’t have to spend every spare pound just paying their interest bills.

    This graph is pretty clear as to whether the english state is "inactivist":

    https://thistimeitisdifferent.com/wp-content/uploads/2020/06/Bank-of-England-Balance-Sheet-until-June-2020-768x531.png

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    1. «This graph is pretty clear as to whether the english state is "inactivist":»

      «Liz Truss, was unceremoniously booted out of office when she tried to actively manage the economy. »

      Quite the opposite: she was trying to stop managing the economy, and let the chips fall where they may, and that was "unacceptable", because property and finance interests are utterly dependent for upward redistribution on favourable, activist, big state policy and intervention.

      «The purpose was not to shrink the state but to weaken it and allow it to degrade. The vision was that this would encourage people to reduce their reliance on public services and thus walk away from the state's "teat"»

      That is what right-wing propaganda says, but that's not what right-wing governments do. What they do is to let the interests of the lower classes wither, but cultivate middle and upper class interests with how much intervention and spending it takes.

      The overall right-wing propaganda adopted so eagerly by our blogger (and the blogger at StumblingAndMumbling) seems to me that today's dominant right-wingers are still minimal-state, let-the-chips-fall-as-they-may, victorian liberals.

      But they are not: victorian liberals were suitable in their era as finance, property and business interests were ascendant, conquering new markets and new countries on the go, and let-the-chips-fall-as-they-may just meant “laisser faire, laissez enricher”.

      In our phase of mature rentier capitalism in the context of a stagnant overall economy in the UK the idea victorian liberalism is used as misleading propaganda: neoliberalism is not victorian liberalism, it is the fusion of liberalism where it benefits property and finance rentiers (for example free imports of labour, free exports of capital), and toryism where it benefits property and finance rentiers (big state intervention and spending in the property and finance markets, via restrictive laws, extremely loose credit and big handouts from Treasury and BoE).

      Property and finance owners are utterly reliant “on public services” (just not those which benefit the lower classes) and the last thing they want is to “walk away from the state's "teat"”.

      The real ideology of the right wing is that "winners" must win, and "losers" must lose, and the role of the state is to intervene and spend whatever it take to ensure that "winners" do win as much as it is to avoid spending or intervening in ways that might prevent "losers" from losing.

      Framing debates as to the overall size and activism of the state and in particular framing massive intervention and spending in favour of "winners" as exceptions is not just misleading it help right-wing propaganda obscure that neoliberals attitude to the state role and size are quite different from those of victorian liberals.

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    2. «Liz Truss, was unceremoniously booted out of office when she tried to actively manage the economy. »
      «Quite the opposite: she was trying to stop managing the economy, and let the chips fall where they may, and that was "unacceptable", because property and finance interests are utterly dependent for upward redistribution on favourable, activist, big state policy and intervention.»

      Sometimes I think that I live in a parallel reality (or perhaps there is something funny in what I drink), because the things I see seem I so different: in my parallel reality the number one consequence of booting out Truss was to ensure that the BoE would bail out, money no object, several City corporations, that is big spending state intervention in the markets, rather than the government under Sunak switching "back" to an "inactivist" stance. Have I imagined all that? Did it play out differently outside my weird parallel reality?

      Note: I used to think that when nominal base interest rates go up, for example because of a surge of inflation, it is inevitable that base interest-rate sensitive assets get repriced brutally, absent big-money government intervention as the sucker-of-first-resort. Is the *absence* of such bailouts to “actively manage the economy”? :-)

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  2. The way to get HS2 finished properly is to form an HS2 Railway Preservation Society. This would work in a similar way to the numerous organisations created to preserve steam railway branch lines and much of the UK canal network. Crucially the HS2 Railway Preservation Society would be an exclusively middle class charitable organisation. The main obstacle is that HS2 is an electric railway technology rather than steam. HS2 has a theoretical top speed of 225 mph the fastest steam trains were about 125 mph. The HS2 electric locos would have to be imported. With all the current steam preservation societies, the UK may just have enough capacity to build some new steam locos.

    Obviously without the romance of steam the project would be more difficult, but not in my view impossible. HS2 would be built using volunteer middle class labour. Office workers from the south east would give up their weekends and some holidays to travel north and work on HS2. The project is going to require all the modern construction equipment, but the HS2 preservation society is a charity so I would expect donations from construction companies etc. The attraction for the middle class volunteers would be use of JCBs wear high vis jackets and such. The HS2 Preservation Society would need royal patronage. I suggest Prince Andrew for this role, if he spends the next 20 years operating a JCB somewhere in the Pennines, at least we know were he is and what he is doing.

    I urge the think tankers to take this idea seriously. This is a 3R project. (Rachel Reeves Ready). Minimal to zero government investment would be required. Many essential UK services are run in a similar manner to the HS2 Preservation Society. If hospices and food banks why not railway infrastructure? A new think tank could be needed to expand this idea. The TSFF ( Tom Sawyer's Fence Foundation) would be staffed by ex NHS managers who can bring their skills persuading people to work for nothing to other areas of the economy. A large grant from the Bill & Melinda Gates Foundation could probably be obtained. For further tips see The Titfield Thunderbolt.

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    1. «Crucially the HS2 Railway Preservation Society would be an exclusively middle class charitable organisation. [...] Office workers from the south east would give up their weekends and some holidays to travel north and work on HS2.»

      But we are talking about preserving HS2 *in the north*, the initial section from London to Birmingham is not in question.

      Why should London and Home Counties middle class people spend any time "preserving" a railway for the "lazy trot scroungers" of some "pushed behind" regions?

      Most people on "the left" don't understand or (pretend not to understand) how tory thinking works:

      * 70% of income tax is paid by 10% of income tax payers.
      * That 10% is also heavily concentrated in London and the south-east.
      * That 10% is the core voting and membership and local official base of the Conservatives, New Labour and LibDems.
      * Any state spending that benefits the other 90% ("scroungers") is detested by that 10%.

      But things are different with the most southernmost leg of HS2: the two big reasons why HS2 *to Birmingham* (more precisely to so-called "Coventry Interchange") has been lavishly funded, unlikely the further section through the "pushed behind" regions, most likely are:

      * Train lines between Birmingham and London are congested, because they carry both long distance traffic and commuter passengers into London, much of that from the northern reaches of the tory-voting "Home Counties".

      * The victorian-liberal way to fix that would have been to price travel between Birmingham and London according to scarcity, but this would have resulted in massive increases in season tickets for commuters into London to reduce their numbers.

      * Massive increases in seasons tickets would have not only made affluent suburban commuters angry, but also would price out many of the less affluent commuters, so that would have made property prices in their areas fall as they would have to move nearer to London or to some other areas with a more affordable combination of property and season ticket prices.

      * HS2 has therefore the primary role to divert long distance travellers off the "East Midlands" and related train routes, relieving their congestion and therefore keeping season tickets prices lower than otherwise, protecting the disposable incomes and property prices of affluent commuters to London.

      * HS2 would also have the secondary role, with 1 hour fast service into London, to make the area around "Coventry Interchange" desirable to people commuting to London, providing early buyers with enormous profits from increasing property prices, and flooding those areas with tory-voting affluent property-owning suburbanites working in London.

      The Conservatives usually operate according the Lady Porter's "Westminster Council Model" of electoral policy:

      Stephen Bush "Politics" 2018-03-16 (NEW STATESMAN):
      “One Tory minister in a safe seat told me that when she used to ask Osborne for something, he would first ask her how big her majority was — and then reply, with a smile, that it was too large for her enquiry to be worth considering.”

      http://en.wikipedia.org/wiki/Homes_for_votes_scandal
      “Eight wards were selected as 'key wards' - in public it was claimed that these wards were subject to particular 'stress factors' leading to a decline in the population of Westminster. In reality, secret documents showed that the wards most subject to these stress factors were rather different, and that the eight wards chosen had been the most marginal in the City Council elections of 1986. [...]
      In services as disparate as street cleaning, pavement repair and environmental improvements, marginal wards were given priority while safely Labour and safely Conservative parts of the city were neglected.[...]
      In 1990, the Conservatives were re-elected by a landslide victory in Westminster, increasing their majority from 4 to 38. They won all but one of the wards targeted by Building Stable Communities policy.”

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  3. "The ... notorious garden bridge over the Thames proved (ahem) a bridge too far"

    This was a project of zero public utility and the media gave it very little scrutiny. The power of the GLA was used to try to bully businesses like the Coin Street Group to get on board and take on some of the risks. When they stood up to the bullying and refused, the project collapsed. My view was that it was mainly a scam to divert money into the pockets of people like Hetherington.

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  4. "While you will still hear many claim that Jeremy Corbyn lost the EU referendum, it was Cameron's insouciance that did it ..... "

    Corbyn actually campaigned during the the referendum campaign while most Labour MPs stayed at home (and we have been given zero information about what Alan Johnson did). Corbyn was also in favour of Freedom of Movement (a non-negotiable elements of membership of the EU) while most Labour MPs wanted to end it. The push-back against the myths about the EU should have started 15 years before but that would have meant saying that the public were being lied to by the Murdoch press.

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