There are alternatives to capitalism. We just need the political will
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Version 0 of 1. Will Hutton’s brave and visionary ideas for reforming British capitalism should be condensed into a terse popular narrative and incorporated into a widely disseminated pre-election “manifesto” (British capitalism is broken. Here’s how to fix it, 11 February). As he says: “The current national conversation is hardly conducive to these ideas”. What about crowd-funded one-page presentations in the national press and social media? It would surely be signed by a long list of respected national figures – not only economists. The distorted imperative of deficit reduction has imposed a straitjacket of negativity around the national conversation The distorted economic imperative of short-term public-sector deficit reduction, bought into by the three main parties, has imposed such a straitjacket of negativity around the national conversation that ideas such as raising research and development investment to £16bn and a new Companies Act to turn companies into long-term value creators, rather than rent extractors, now sound like seditious thought crimes. People need to understand there is an alternative to the downward spiral of short-term public spending cuts and the “balancing the books” mantra. Once they realise that an investment-led strategy, implementing some of Will’s ideas using low-interest public-borrowing and fair tax-raising, could work – as advocated even by some in the IMF – then they may begin to lift their eyes to the hills.Andrew BroadbentLondon • What has been missing in the many analyses of the current economic, social and political mess is any real attempt at a comprehensive solution. Will Hutton has produced a comprehensive and believable attempt to pull all the threads together. But there are gaps. He talks about the future of businesses based on a new Companies Act, but it’s not clear how this would address the problems presented by 40% of shares in major UK companies (including utilities) being foreign owned. His picture of innovative, creative research-based companies of the future says nothing about where we are to find the people to lead and manage them; the mediocre, short-termist, self-enriching people at the top now hardly seem likely to metamorphose into such leaders. In what is becoming a low-skills, low-wage economy, where are the people who will work in the engine rooms of these new enterprises? None of this is to pour cold water on the vision; it is simply to point out that the transition will take time to bring about. But it seems to me that Will’s approach, if taken up by our politicians (who but the Labour party in present circumstances?) and sold effectively, could get the voters out of their seats and into the polling stations.But does Labour, or any other party, have the guts to take on the vested interests that will be ranged against them? Let’s hope so for all our sakes. Alan HealeyBishop’s Castle, Shropshire • A total revolution in company legislation is seriously overdue and Will Hutton seemed to cover most of what is needed. But the audit process also needs a revolution. Auditors have failed to identify boardroom wrongdoing from the time of Robert Maxwell through to the banking scandals, and seem to aid tax evasion rather than ensuring companies pay what they should. Auditors should be appointed by and report to a financial regulation authority and be accountable for a company’s legal and fiscal rectitude.Anna HodgettsBurgess Hill, West Sussex • Will Hutton’s assertion that the state has initiated most significant technological developments during the past 500 years undermines his otherwise excellent manifesto. Only in wartime has the British state indulged the ill-disciplined mavericks ultimately responsible for innovation. As for the role of the guilds in medieval life, the modern wealth-creating economy didn’t emerge until the guilds’ collapse. I also suspect that the production line at Jaguar Land Rover welcomes the company’s foreign ownership, as do the owners of their cars.Michael HeatonWarminster, Wiltshire • If only we could get Labour or the Lib Dems to at least read Will Hutton’s article. But they both seem frightened to abandon the failed neoliberal ways that have held sway since the mid-1970s. For example, both support the Transatlantic Trade and Investment Partnership being negotiated between Europe and the US. If signed, this agreement would enshrine in law the worst excesses of neoliberalism and potentially hand over control of our services, private and public, to multinational companies. Thank goodness people in Germany and Holland are sufficiently aware to be campaigning against it and so it is unlikely to be signed this year.Michael McLoughlinLondon • In the 1870s, Anthony Trollope commented on his novel The Way We Live Now, which concerned a banking scandal: “… there seems to be reason for fearing that men and women will be taught to feel that dishonesty, if it can become splendid, will cease to be abominable. If dishonesty can live in a gorgeous palace with pictures on all its walls, and gems in all its cupboards, with marble and ivory in all its corners, and can give Apician dinners, and get into parliament, and deal in millions, then dishonesty is not disgraceful, and the man dishonest after such a fashion is not a low scoundrel.” I’ve lived through a time when that risk seemed to have receded, and it is tragic to see it returning so egregiously in these days of unfettered capitalism. Are any of our politicians capable of tackling the nexus of money, corruption and influence that is so carefully wrecking our environment and debasing our civilisation?Bob LangtonBristol • It is shameful that cross-party thinktank Demos supports the idea of food banks converting themselves into community shop-type operations (Could supermarkets for poor people tackle the UK’s chronic food poverty? 11 February). What an indictment of our society, where in the sixth richest country in the world, giving poor people “the chance to be consumers” by selling them food otherwise destined “to go to landfill” is viewed as worthy. Presumably “low income customers” only deserve the surplus no-one else wants? It is to be expected that the right-wing, would-be Tory leader, and Churchill sychophant, Boris Johnson, and his “food policy adviser”, Rosie Boycott, “are understood to be fans” of the idea, but far more sensible “practical solutions” would be to increase the minimum wage so low-paid workers could survive without relying on benefits, for exorbitant rents to be reduced, and for the survival of the welfare state to be given top priority above tax reductions for the rich and such things as Trident renewal. At least Jack Monroe (These stores are no good if you don`t have any money), in the same edition, is not fooled, and sees that campaigns for all to be paid the living wage are much worthier of our support. Bernie EvansLiverpool • Ian Birrell lumps together capitalists, risk-takers and wealth creators (I warned the Tories to shun tax dodgers. They wouldn’t listen, 10 February), which I would question. Certainly some capitalism involves risk, but it’s the equation with wealth creation that is most pervasive and never seems to be questioned. The Dysons of this world do create, but they are the exceptions. Most capitalism is involved in the provision of services – in effect, taking in each other’s washing. I doubt, for example, that HSBC ever created much, although in its proper function it might have provided a facilitating support service. Nothing wrong with that, but it isn’t wealth creation, which has to mean much more than simply appropriating money.David MartinGlasgow |