Johann Hari sheds light on Blairite delusions

Readers probably won’t be surprised that I’m a “diane4leader” supporter in the Labour leadership race. However, Johann Hari’s endorsement of Ed Milliband in the Independant today certainly highlights the ridiculousness of Blair’s delusional perspective:

[Ed and David] also differ closer to home. Blair said this week that Labour lost because “it stopped being New Labour” – the argument that David Miliband’s team are echoing. He named two policies that he says lost the party support. The first is the decision to increase taxes on the richest 1 per cent from 40 per cent to 50 per cent. Yet in reality, according to YouGov, some 62 per cent of Brits want to go further and introduce the higher rate at £100k. Only 25 per cent are against.

The second deadly policy, he says, is that Gordon Brown started “identifying banks as the malfeasants” after the crash. Yes: Tony Blair thinks people didn’t vote Labour because the party was too critical of bankers. In truth, again, 76 per cent say Brown was too soft on the banks. Remember: these are Blair’s own examples, not mine.

This is a perfect illustration of the argument that Ed Miliband has been making throughout the leadership debate. He has claimed that New Labour’s initial instincts from 1994 have hardened into “ideological dogmas” that would leave the party “beached by history” in this decade. The more New Labour hardened into a right-wing caucus, the more it shed votes: by 2005, on Blair’s watch, it was down to 35 per cent, and only “won” because of an undemocratic electoral system that may not be there next time.

Hari also makes a further good point:

So what’s Ed Miliband’s alternative? Peter Mandelson and others have offered up a silly straw man, claiming he believes Labour should “abandon the middle classes”. In fact, he has a more subtle point. If you want to appeal to the middle class in Britain, you have to know what it is – and people like Mandelson seem to have forgotten in a blur of yachts and guacamole dips. The median wage in this country is £20,831. Only 10 per cent earn more than £40,000. So Ed Miliband wants policies that help the real middle – not the top 1 per cent that Blair, Cameron and co bizarrely class as “ordinary voters”.

This, the real middle class in Britain, has been stressed for a long time as their share of national income has been steadily transferred to the rich. Over the past 30 years, the proportion of GDP paid in wages has fallen from 67 per cent to 54 per cent, while the proportion going to the rich as income from dividends has sky-rocketed. They work the longest hours in Europe, but their wages are, relatively, shrinking. There’s a real redistributive will out there, waiting to be tapped.

The fact that David appears to reject both these points because this this would mean “dumping on” the New Labour record is hardly a surprise – his backers are exactly the same bankers and high financiers as Blair’s. So much for a campaign that “looks forward” Dave…

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