Who is living in cloud cuckoo land?

Letter to Suffolk Free Press

Dear Editor

Steve Britt (SFP, 7 Nov 2019) yet again summarises his utopia of free trade, minimal state intervention and low taxes. But he is describing a system that has already failed and which is completely inappropriate with dealing with the crises facing society, from the prevalence of gross inequality to the challenges of global heating.

Every day we witness stagnating real wages, indifferent public services, companies adrift, rampaging private equity, grotesque monopoly, a growth in food banks and rough sleeping and the degradation of the environment.  Addressing these issues requires real change not the continuation of out-dated forms of capitalism.

The role of government is to encourage enterprise through the provision of appropriate infrastructures so that businesses can thrive.  But governments also need to set up vigorous regulatory frameworks that attack monopoly, promote competition and outlaw noxious practices.  They also need to empower countervailing forces, such as trade unions and public agencies which support high-risk new technologies, and engage in a revived social contract where healthcare, pensions and education are given the priority they deserve.

Talk of taxation as theft turns out to be a variation on the egotistical tendency to see one’s success in splendid isolation, ignoring the contribution of past generations, current colleagues, and the supportive welfare agencies provided by governments. 

Steve Britt needs to recognise that the state is not just a spender but an investor and risk taker.  He ignores the value created by government, such as an educated workforce, human capital, and the technology that ends up in our smart products.  He should stop talking about the public sector interfering with the private sector.  He should instead be arguing that the two sectors should nourish and reinforce each other in the pursuit of common goals and wealth creation.

Just one more point: Steve Britt declares that his panacea of unilateral free trade will involve “a minimal amount of bureaucracy”.  The Financial Times has pointed out that customs paperwork alone, is set to cost business £15bn in a no-deal Brexit.  Who is living in cloud cuckoo land?

Yours sincerely