Tag Archives: taxes

Ed Miliband can learn from Obama the salesman


President Obama’s State of Union address was a politically shrewd and inspirational sales pitch. At times it felt like a return to the stirring rhetoric of his election campaign which so captured the hearts of not only Americans, but citizens across the globe. He was playing his back-up card, his own magnetic charisma and charm, in an attempt to recover the legacy of his first term. It was a bold speech but it wasn’t flawless; occasionally Obama uncharacteristically tripped over his words and the key policy goals won’t win over everyone. But often his tone and message seemed perfectly tailored to the mindset of his nation. Despite the patriotic focus on America however there are numerous lessons leaders of left-wing political parties around the world, especially Labour’s Ed Miliband, can learn from the tactics, execution and content of the President’s speech.

There was a somewhat forced emphasis on pluralism and cooperation across the political spectrum. Ed Miliband has already started to learn this lesson himself. He began his tenure as leader aggressively pursuing the Lib Dem vote and he has now softened his approach to encourage teamwork against the worst of the cuts, and leave the way clear for a Lib-Lab coalition. In particular he’s gone to considerable lengths to retract comments he made about Nick Clegg, in the heat of the moment swept up by the public venom for the man, to appease the Lib Dem leader in the event of a close parliament once again at the next election. President Obama repeatedly praised the new Republican leader of Congress and even incorporated the story of his humble background into the appealing sense of patriotism and history coursing through the blood of his words.

This search for common ground with Republicans was of course necessary. The Mid-Term results left Obama in a desperate legislative position and in dire need of supporters for his landmark policies on both sides of American politics. Health Care has bogged down Obama’s Presidency thus far and in this speech he sought to draw a line under it. In the spirit of national cooperation, which Obama highlighted so much during his election campaign and then unwisely forgot during his first years in power, he asked anyone with improvements to the Health Care Bill to come forward and work with him. He also quipped that he had heard some people still had problems with it, laughing off the gaping ideological divide. Instead he set his sights firmly on a new ambitious primary objective and set about selling it in a way that would appeal to both hesitant Republicans and indifferent voters.

At the core of this address was a striking commitment to green-tech and clean energy. You could see the firm imprint of the devastating Gulf of Mexico oil leak on the President’s words as he announced wave after wave of intention to develop green programmes. I urged David Cameron on this blog to utilise the platform presented by the oil leak for green growth and it seems Obama is finally seizing the opportunity to push through his Climate Change objectives under a different guise. And that’s the vital point about this speech; the way in which Obama sold the solutions to Climate Change and the environmental challenge.

Nowhere do the words “climate” or “global warming” appear in the text of the address. At no point does he bellow any frightening warnings about the excess of the American way of life, but the implications are there. He uses the guilt, anger and worry people feel about the oil leak to smuggle in leftist policies like the removal of subsidies for oil companies, who are “doing just fine on their own”, and tax breaks for millionaires. He cites the deficit, the Republican’s Holy Grail (much like the Conservatives here) as his main reason for such money saving measures, not punishing success, an obstacle so often to the removal of unfair, outdated tax relief for the wealthiest in the States. He reinforces his deficit argument still further by promising a prolonged spending freeze which he backs up with figures that claim to eat away at the debt at unprecedented levels. Could some Republicans be warming to the President’s policies?

You’d think not if he was emphasising investment for green energy and massive cuts to emissions. But Obama’s presentation of the measures was key. He talked about “winning the future” and set up the race for clean energy between America and China, drawing comparisons with the Communist struggle and the space race. He set about inspiring his countrymen, and patriotic Republican opponents, by fusing the need for a green revolution with a sense of historic nationalism and pride in America’s achievements.

“The first step in winning the future is encouraging American innovation. …

We’ll invest in biomedical research, information technology, and especially clean energy technology — an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.

Already, we are seeing the promise of renewable energy. Robert and Gary Allen are brothers who run a small Michigan roofing company. After September 11th, they volunteered their best roofers to help repair the Pentagon. But half of their factory went unused, and the recession hit them hard.

Today, with the help of a government loan, that empty space is being used to manufacture solar shingles that are being sold all across the country. In Robert’s words, “We reinvented ourselves.”

That’s what Americans have done for over two hundred years: reinvented ourselves. And to spur on more success stories like the Allen Brothers, we’ve begun to reinvent our energy policy. We’re not just handing out money. We’re issuing a challenge. We’re telling America’s scientists and engineers that if they assemble teams of the best minds in their fields, and focus on the hardest problems in clean energy, we’ll fund the Apollo Projects of our time.”

When Obama was elected, even I in rural England, felt a part of real history for the first time in many years. It’s easy in our modern world to feel like it’s all been done and there are no discoveries left, no bold new challenges to conquer or visions to forge and realize. But with Obama’s reference to the “Apollo projects of our time” he excites people and presents Climate Change and its problems as an opportunity to reinvent in fairer, bigger and better ways. He pledged to aim for 80% of American energy to be green by 2035 and for 80% of Americans to have access to the enormous potential of high-speed rail within 25 years.  When these figures are all about doom and gloom Climate Change, which some people still doubt, they leave voters cold. But simplify the message to security, better environment and more jobs and a stronger economy, and they’re interested. 

I’ve thought for a long time that Climate Change is the challenge of our generation, one we cannot afford to ignore, but that it is also an opportunity for a reinvention of society with the potential to banish unfairness and find sustainable solutions to poverty. Green politicians are constantly going at the issue in the wrong way, an alienating way. Ed Miliband and his new Shadow Chancellor Ed Balls need a plan for growth. This plan needs to not only be credible and obviously a better route to deficit reduction than Coalition cuts, but inspirational and worthy of votes. Miliband needs his own “Big Society” idea and sell green growth, like Obama in his State of Union address, and he has it; a popular economic policy with a vision that can define his new party. Britons too have a strong sense of history, when it’s properly stimulated, and Miliband could make the case for Britain becoming a world leader on green growth. In fact follow Obama’s example and major policy areas suddenly entwine and give much needed direction; the economy and the deficit, security and Britain’s foreign policy role, our partnership with America and Climate Change.

Of course Obama might not succeed and it certainly seems unlikely he’ll achieve everything he aimed for in his speech. But he has set out a direction for the end of his term. One that could potentially change his country and the world for the better. Ed Miliband can’t afford to dither much longer about the direction of his party. The longer he waits the harder it will be to achieve genuine policy goals he has long committed to, like a banking bonus tax, a solution to tuition fees and investment instead of cuts. Sell it all under the right sort of green banner and he has a refreshing, substantive alternative to Cameron’s bruising cuts and hollow “Big Society”.

Advertisements

Ed must not falter as Cameron eyes comfy legacy


I have just finished watching Ed Miliband’s first speech as the new leader of the Labour party. It began with a volley of jokes, of human humour, that must have had many Labour supporters sighing with relief that they at least now had a leader who could smile and appear accessible to the public, following the stoic, grim Scott that preceded him. Indeed the strongest feature of the speech was a man with beliefs and ordinary concerns defining himself, announcing himself to the people of Britain. Here was a reasonable, genuine man the public could relate to but did he have the stature of a leader?

Yesterday elder brother David delivered a rallying cry to his party that had the media scrambling to suggest Labour had picked the wrong Miliband and that David Cameron had been right to fear the Shadow Foreign Secretary the most. Losing by the narrowest of margins, the bouncy figure once derided as Mr Bean and Banana Man looked like a leader, like a man who could be Prime Minister. In contrast Ed can sometimes look like a rabbit caught in the headlights, particularly in the acceptance speech immediately following his victory and again at times today. He can also look a soft geeky presence rather than a strong inspiring one, ready for the challenge of leadership and Opposition.

But David lost for a reason. The elder Miliband was content to ride a wave of guaranteed support to the leadership, with minimal effort. He may have honed his demeanour and conducted himself like a leader, but he did not reach out enough in the necessary ways. He was essentially lazy. He had incredibly strong support and need only had made some minor concessions to the trade unions and supporters of his brother to secure victory. He lost because he refused to break with the past of New Labour in the way that many grass roots voters wanted. He was admirably defiant about New Labour’s positive legacy but made few moves to indicate where the project went wrong and more importantly in which direction he would take it. David did not grab and harness the mood of change.

Ed, like David Cameron and Barack Obama and even Tony Blair, who emerged from almost nowhere to lead their country, did recognise the value of a clean slate, of a breath of fresh air. He recognised that the party knew it had stagnated and the electorate were no longer interested unless it refreshed its ideas, reconnected with its ideals in a new optimistic way. Ed ended his speech by declaring his Labour to be the party of optimism in contrast to Cameron’s cuts. He began his speech talking about a new generation. During his speech we learnt little more about Ed’s policy vision for the party, as he perhaps wisely kept most hands close to his chest, vague and adaptable to the demands of Opposition. However during his campaign Ed’s denouncement of Iraq, and his support for a living wage, AV and a graduate tax, were all bigger indicators of Ed’s Labour party than David was willing to offer. His brother simply didn’t offer the progressive policies that even many in the Labour old guard wanted to see championed now by a new wave of youthful renewal, equal to the challenge of Clegg and Cameron’s Con-Dem coalition.

Following Ed’s triumph though the media have blasted him and he has been labelled a puppet of the unions, “Red Ed”, out of touch with the core middle England vote. He moved quickly to counter these claims with interviews in the Sunday Telegraph and on the Andrew Marr show, saying he would fight for Britain’s “squeezed middle”. Reading the coverage of his victory I noticed that David Cameron had called Ed to congratulate him from Chequers, and warned him that his job would be a tough one. I can’t help but think Cameron would not have been so eager to call, or so superior and wise in his manner, had the more experienced and in his view more threatening elder brother won the contest. Cameron no doubt sees Ed as an easy target and may already be eyeing a second term, free of Lib Dem constraint. “Red ED” will be inexperienced and easy to sideline as an illegitimate Union toy, keen on tax rises and simply not credible on the economy. He also authored Labour’s last, losing election manifesto, and is not as new and fresh as he would make out. Cameron should easily get the better of him at PMQs for a while and any Labour poll leads will prove superficial when 2015 comes around and the coalition has secured economic recovery.

Ed must obviously be cautious that he is not unfairly painted by the Tories and that his policies do not alienate the very voters Labour must win back in the south, the voters who chose Blair in 1997. This accounts for his soothing rhetoric with regards to the middle classes. But Ed must hold his nerve and be bold too and learn the lessons of his leadership victory. He won because he presented a more dynamic vision on policy than his brother. He won with a clear progressive message. He also won because although he may not look like a leader at times he does look genuine, not a fake performer but an actual idealist, committed to what he says, reasonable and pragmatic in his approach and willing to talk about love and compassion in ways other politicians of different generations cannot. He must not tarnish the positive, honest image he is building for himself with the British people by muddling his message. He must not take fright at the newspaper headlines and give out mixed views but continue to pursue the radical, progressive and optimistic agenda that carried him through his campaign. He should not be afraid to take a distinctive stance on the deficit with a different emphasis on tax and other kinds of cuts than those proposed by the coalition, as long as it is credible. He should prove he is a man of his word and not simply a career politician by putting a green economy, green taxes and carbon emissions reductions at the heart of his party’s policy, following his role as Climate Change Secretary. He has the potential to both inspire a new youthful generation on issues of the day such as new politics and global warming and reconnect with the values of older generations on issues like family, Afghanistan and tax. The formation of his Shadow Cabinet in the coming weeks will be the first true test of Ed’s leadership qualities and also be crucial to defining his vision for the party. Whatever his brother decides to do Ed must remain proactive in challenging the establishment as he said in his speech and not budge on his message of a progressive alternative for Britain, regardless of media pressure. Voters will repay passionate consistent calls for change in the long run.

Public vs Private? A Lib Dem Dilemma


All hospitals look and feel essentially the same. They are the same mass of endless corridors, stretching on and on, filled with nurses and clipboards and trolleys but still somehow feeling like big, empty tubes brimming with nothing but still, sterile, clinical air that gnaws and chews at the nerves and wellbeing of patients before spitting them out from some unidentifiable artery drenched in anxiety. They have the same mockingly soft carpet, the same peeling paint from the same cold metal chairs, the same trundling squeaks from the laundry cart or doom laden whines of consultant’s doors. They are littered with the same old people riddled with ailments, the same proud photos of ill people remarkably overcoming their unlucky genetic hand, the same criss-crossing, numberless signage with countless departments. They are staffed by the same kindly but ordinary people, who for whatever reason work in the service of other people’s health and are without fail exposed, despite the reassuring professionalism or caring compassion behind the smiles, by the thick scent of disinfectant hanging in the air as the messengers of pain, discomfort and humiliation.

This hospital though was rather more particular than others. The walls had been whitewashed in an attempt to impose the familiar order but the age of the building meant that the corridors were endless but twisting and unpredictable, the windows suddenly large, the carpet non-existent, pipes peppering the wall like the workings of a rusty cruise liner. The floor abruptly sloped at times and the rooms were inconsistent in size. The reception area was a modern pod inserted into the post-war whole, plastered with the usual abundance of signage but beyond this all was quiet, free of clutter and business. My chest x-ray took all of thirty seconds and was carried out by a single nurse, the only member of staff in the entire corridor, who had rehearsed her lines perfectly from years of service. There was no whiff of doom in the air, merely the cold tinge of the metal plate and a slight chill from the corridor as I put my shirt back on. The results would filter through the NHS bureaucracy to my GP in a week, she said.

A relatively comfortable routine test then, that despite a handful of distinctive features at this hospital, ought to be as simple and painless across the country. In the run-up to the election David Cameron was desperate to make his party the party of the NHS, an institution he and others clearly now see as a fundamentally British ideal, not simply a Labour one. Since coming to power Cameron and his government have reaffirmed their commitment to “ring-fence” NHS spending and protect it from the comprehensive spending reviews due to steamroll through the budgets of other departments in the autumn. Presumably this is because Cameron, and it would seem the entire political class, rightly believe that healthcare should meet the same standards nationally and be available to all for free and that to provide such a service is a key indicator of a modern, civilized nation. Despite Cameron’s championing of the “Big Society” when it comes to health he has adopted a position he has often dubbed as “big government”.

Cameron’s emphasis on the “Big Society” and the masses of waste that inevitably stem from the contrary “big government” spending approach, mean that a dangerous debate is emerging that is set to compromise efficiency and fairness in the race to slash the budget deficit. Cameron has wrongly insisted that spending must be conducted in either a reckless way involving “big government” control or a devolved, fair, effective “Big Society” way. The reality is that government has an enormous role to play, often with taxes and spending injections but also that it must occasionally extend freedom to the private sector for jobs it would do better. The NHS is easily the biggest strain on government spending and Cameron has sought to impose his “Big Society” rhetoric on it in a way by encouraging local control and a purge of absurd bureaucracy. This purge would aim to increase efficiency and effectiveness by doing away with ludicrous regulations that prohibit nurses from giving injections but allow them to carry out blood tests for example, as well as cutting wasteful spending. Any attempt at streamlining efficiency is always welcome but ultimately as hollow as the Conservatives’ promises of “efficiency savings” during the election to deal with the deficit. The problem goes much deeper. If Cameron was serious and sensible about tackling “big government” spending he would address NHS spending as it accounts for such a large chunk of the state’s expenditure. He would prioritise treatment for those truly ill and scale back other projects such as IVF and cosmetic surgery currently available via the NHS. He would ease the tax burden on private hospitals and encourage those who could afford private treatment to use it, whilst increasing taxes on anything that adds to the NHS workload, for example alcohol, tobacco, particularly harmful fats and additives in food. To take these sensible steps that would lead to a higher quality NHS for those ill and injured through no fault of their own, genuinely deserving of treatment, Cameron’s government would have to make unpopular choices and introduce tax rises and it is far simpler to be hailed as moral crusaders for preserving the inalienable right of free health care above all other areas that are trivial in comparison.

By writing a blank cheque to the NHS Cameron makes the axe fall harder elsewhere in Whitehall departments. This is foolish given that certain things only the government can do and others government ought to do more with. For example the MOD is set to face massive cuts which could be even more devastating if the Chancellor wins his ministerial battle with Liam Fox, the defence secretary, to ensure the Trident replacement is paid for out of the MOD budget, not the Treasury’s. “Defence of the realm” Cameron insisted this week, “should always remain any government’s first priority”. And yet somewhere Britain’s capabilities shall suffer irreversibly, be it through the loss of a fleet of helicopters destined to safely ferry troops tasked with an ambitious withdrawal target around Afghan provinces or through the loss of jets, or troops or aircraft carriers. A Strategic Defence Review might lead to a much needed rethink in the direction of defence strategy but it will also herald the scaling back of Britain’s global influence, it is simply a question of how much prestige we shall concede.

In my opinion defence is not the only area that can only effectively be administered by government being hit hard by the proposed cuts. The energy department’s budget is under threat and Liberal Democrat Energy Secretary Chris Huhne has already stressed that the bulk of his budget is consumed by the safe disposal of nuclear waste. Britain could be well placed to avoid the worse of energy crisis and turmoil in the future if proper investment is given to renewable sources, particularly wind as we have 40% of the potential wind energy in Europe within our territory. However the coalition government’s ideological spending decisions mean that their only efforts will be the “encouragement” of private investment in these industries, at a time where swift and direct action must be taken to kick start a long term, essential process of diversification and development. Private investment is in any case bound to be slow as we emerge from recession and the industries are yet to be regarded as ripe for profit. This is all ignoring the fact that a country surely ought to have a great deal of direct control over its energy production for reasons of security, independence and stability in the long term and yet we are happy to surrender the keys to our daily lives to vulnerable, private, foreign companies?

Staying with climate change a “big government” solution to transport emissions and efficiency would also be preferable, but unthinkable without a major redistribution of government spending. At the moment government expenditure helps maintain the railways and yet private companies control prices and provide largely unattractive services. Government control would allow a fresher, greener, cheaper and more widely used transport network and would inevitably have to be offset by tax rises on the motorist. All of this talk of nationalisation style policy and tax rises is far too left wing for the coalition government, but the Liberal Democrats called for such revolutionary transport policy in their manifesto, to invigorate the economy and lead the way on emissions cuts. Instead the Lib Dems are being sucked into an alliance of slashing not just in spending but in government influence. It might be liberal to rein in the police and even to make sure benefits are only paid to those genuinely in need, but it can also be liberal for government to make transport cheap and appealing to all, ensure a consistent, cheap energy supply and take direct charge of basic education in schools. This divide between big state and small state liberals has long been a feature of the Liberal Democrats and may continue to be an issue.

Several contributors to DemoCritic have warned that the Lib Dems must be careful in coalition and I have urged them and us, the voters, repeatedly on my blog to ensure the Conservatives do not have unlimited use of orange and yellow human shields in Parliament. When it comes to Cameron’s “Big Society” agenda Nick Clegg has promised that it upholds liberal values. But during the election he dismissed the slogan as a gimmick designed to disguise rushed, ideological deficit reduction that threatens not only the economy but the efficiency and fairness of our state. Clegg and those in his party must endeavour to ensure what’s good about the “Big Society” goes ahead and the Labour party and the electorate must continue to call for what Cameron labels “big government” solutions when they are right and suitable.