What Labour should learn from Coronation Street


by Chris Dillow    
10:00 am - June 18th 2011

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There’s a delightful symmetry in the fact that Corrie’s Graeme and Xin storyline climaxed on the same day that Ed Miliband complained about “those on benefits who were abusing the system.”

That speech produced what Sue calls a “gasp of horror” from the disabled and the Left generally.

You shouldn’t need me to point out that complaints about benefit abuse is an example of the right’s “small truth, big error” rhetorical trick. But I will:

- According to the last DWP accounts, benefit fraud cost £1bn in 2008-09. That’s less than the cost of the DWP’s own administrative errors, and much less than the amount of benefits that people are entitled to but do not claim.
- From a Keynesian perspective, benefits serve a useful counter-cyclical function in stimulating demand. They are a roundabout way of boosting the profits of Lidl and Primark.
- Insofar as people don’t want to work, it could be that this what Jon Elster called an adaptive preference. Having tried and failed to get work, people reduce their cognitive dissonance by coming not to want work. People aren’t unemployed because they don’t want to work, but instead don’t want to work because they are unemployed.

So, why did Miliband ignore all this and instead take cheap shots at the worst off?
The defence of him is that this is the sort of political posturing a Labour leader must undertake in a world in which floating voters and the gutter press have irrational prejudices. As Septicisle says, “I suspect, and hope, that Miliband doesn’t really believe this.”

Which brings me to Graeme and Xin. As you know, they pretended to get married in order to get Xin a visa, but ended up falling in love.

The message here is that people can – and do – end up becoming the roles they play; this is why arranged marriages often become loving ones, and why economists are more selfish than others.

I fear that this problem might also affect leftist politicians. Yes, they might start out by merely pretending to bash the poor. But as with Graeme and Xin, the pretence ends up becoming reality. Similarly, they might start out by trying merely to play a role by climbing up a hierarchy, but they end up supporting that hierarchy. As I’ve said, office determines character more than character determines office. The result is that leftist politicians so often disappoint their more radical supporters.

It’s in this sense that we should worry about Miliband’s attack upon benefit claimants. Such attacks might start out as mere noble lies intended to pacify the mob – but they don‘t end there.

All of which leads me to endorse a point made by Phil:

The Labour party is and always has been a party within the capitalist system and…trying to change it – rather than bypassing it in an attempt to change society – [is] a waste of effort.

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About the author
Chris Dillow is a regular contributor and former City economist, now an economics writer. He is also the author of The End of Politics: New Labour and the Folly of Managerialism. Also at: Stumbling and Mumbling
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Story Filed Under: Blog ,Equality ,The Left


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Reader comments


“Benefits… are a roundabout way of boosting the profits of Lidl and Primark.”

Can you imagine the absolute shit storm had a Tory said that? I guess the Left can get away with sneering class snobbery because they ‘care’ right?

In any case its a Keynesian fallacy; yes it may well increase aggregate demand – as you can similarly argue increased public sector employment does – but there is no net benefit because the money came from the sector its being spent on (and the people it employes) in the first place, it is merely a cycle of cash, an illusion which does no one any good at all, and which can only be maintained through increased govt borrowing. Which we defer to our children. Which sucks.

2. ChrisBracken

But what if it wasn’t political posturing, Chris? It would be very comforting to think he was making the right noises to attract the misinformed while remaining (secretly?) true to the ideal of care. Contacting one or two Labour tribals, they seem to be sticking to that view as a man clings to the wreckage of his ship. Frankly, though, Labour have form on this. ESA – enough said?

The sick & disabled are frightened, and cannot afford such hope when they see the one person who might have helped them adopt the words of their enemy, and join the assault on them. It’s time for a bit of honesty from Ed Miliband and the Labour party. Make the moral choice and come out for the vulnerable. Stop pandering to the lowest common denominator and help those that need it.

Yesterday, a Tory MP gave voice to an opinion that implied the disabled were worth less to society than the able well. That should have been an open goal for the Labour party, but four days before Ed Miliband had started wearing the other team’s shirt.

The weakest have no-one to turn to. What a sad place this has become.

“According to the last DWP accounts, benefit fraud cost £1bn in 2008-09. That’s less than the cost of the DWP’s own administrative errors, and much less than the amount of benefits that people are entitled to but do not claim.”

That doesn’t mean benefit fraud is OK.

“From a Keynesian perspective, benefits serve a useful counter-cyclical function in stimulating demand. They are a roundabout way of boosting the profits of Lidl and Primark.”

That doesn’t mean benefit fraud is OK.

“Insofar as people don’t want to work, it could be that this what Jon Elster called an adaptive preference. Having tried and failed to get work, people reduce their cognitive dissonance by coming not to want work. People aren’t unemployed because they don’t want to work, but instead don’t want to work because they are unemployed.”

That doesn’t mean benefit fraud is OK.

Attacking benefit fraud is not an attack on people claiming benefits.

@3 Well it is when you come to the conclusion that it’s better for some genuine claimants to go without in order to stop fraud, than to admit that some will be lost to fraud while making sure all who are entitled do receive.

5. Julian St Jude

When that Tory MP said that the disabled should be “free” to work for less than the minimum wage, he meant that they should be forced to work for less than the minimum wage under threat of benefit withdrawal. Doubtlessly he spoke the views of a silent majority of Tory MPs and a shamefaced majority of Labour MPs.

6. UserBanned

People here should keep a bit of perspective, its not like he kicked away a cripples crutches on stage, he merely alluded (in the vaguest possible terms) to the previous governments failure to tackle a perceived culture of benefit dependency.

7. UserBanned

5. Ridiculous hyperbole.

Could have done without ‘boosting the profits of Lidl and Primark’. Stereotyping even in a relatively innocuous fashion as this is part of the continuum that at one extreme is the hate speech directed at welfare users and the poor in order to facilitate support for these policies.

9. Julian St Jude

7. No, not hyperbole, just factual correctness. I can well imagine vulnerable mentally and physically ill 65 year olds dredging trollys out of canals for £1.50 per hour 10 years from now, be it under a Conservative or a Labour government. What’s more, politicians will be congratulating themselves for having had the “courage” to take those tough decisions and for having “liberated” those 65 year olds from the “dependency culture”. Even then the factually incorrect will be scandalmongerring the fact that these 65 year olds are paid too much and worked too little.

@7: “I can well imagine vulnerable mentally and physically ill 65 year olds dredging trollys out of canals for £1.50 per hour 10 years from now, be it under a Conservative or a Labour government.”

Looxury !

The looming question on the horizon is whether they will be making a modest investment in a national network of neighbourhood Harold Shipman Centres – manned by volunteers, naturally – to facilitate the passing of the old and vulnerable.

Simple cost-benefit analysis will show that a pensioner gone is a budget deficit saver from the net fiscal benefits to the government from the savings in state pension payments and the increasing cost of NHS healthcare.

Try:
http://www.youtube.com/watch?v=Xe1a1wHxTyo&feature=fvwrel


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