“Without realising it the free-market West, most notably the US and the UK, has sleepwalked into a species of financial crony capitalism that has disguised economic reality, shielded underperformance, cosseted poor management and leached away value.”
In 2011, a junior Conservative MP published a pamphlet, The Case for Real Capitalism, which anatomised the failures that led to the global financial crisis and — by implication — the policy responses that followed. Jesse Norman had been elected for the first time the previous year, and no one took much notice of his work; but looking back, he may well be considered a prophet whose foresight ought to have been perceived by his own party.
If it had been, UK economic policy might have been more sustainable, British business and regulation more sensible, and society happier. Oh, and the Conservatives might not have taken the better part of a decade to wake up to some of the realities of markets, economics and politics that the new Boris Johnson government is starting to recognise.
But back then, the Conservatives didn’t even have a majority — let alone a decisive one. Those were the days of the coalition, which saw regular disagreement between its Conservative and Lib Dem partners, not least about markets and their role. Vince Cable, the Lib Dem business secretary, was a bete noir for many Conservatives, because he articulated a sharp critique of capitalism. In the autumn of 2010, he enraged many “free market” Conservatives when he declared: “Capitalism takes no prisoners and kills competition where it can.”
Facing the coalition across the Commons was Ed Miliband. It’s strange to think now, in these post-Corbyn days, but Miliband was then regarded as a leftist intent on a radical break with economic consensus. Early in his leadership he said businesses could be divided into “predators” and “producers”, an analysis that again drew intense criticism from some Conservatives.
Yet in The Case for Real Capitalism, here was a Conservative author offering an assessment of the UK economic model that shared an awful lot with that of politicians his party scorned.
There were, and are, significant differences, of course. Whereas many on the Left regard an open market economy as inevitably unfair and unbalanced, Norman’s view was that capitalism in its pure form can deliver precisely the same harmony and balance that the Left associates with direct action and provision from the State.
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