There are signs that the pandemic has jolted Britain out of the lethargy that has persisted since the last economic crisis. In this blog, I simply reprint the comments of Torsten Bell , CEO of the Resolution Foundation, which themselves are comments on an article appearing in the FT. The gist of the article is in the title of this blog, but its substance is in the realisation of the social injustice that is becoming apparent because of this crisis. Literally the crisis is realising for middle class intellectuals what has been apparent for poor people for many years.
New for the @FT – the moral and economic case for the UK’s unprecedented response to an unprecedented economic crisis https://t.co/jVtPfM163P
— Torsten Bell (@TorstenBell) March 21, 2020
The FT is a serious newspaper , a shift in its position on economic and moral matters is in itself “newsworthy”
It is hard to believe how far we’ve come – the state guaranteeing 80% of workers wages is not normal and not what we expect Conservative governments to be doing pic.twitter.com/aL0RAOAcCs
— Torsten Bell (@TorstenBell) March 21, 2020
Political decisions are now being driven not by the impact they will have on public sentiment but by scientists warning of potential catastrophe. For the first time in my lifetime, Britain seems to be on a war footing.
The moral case for this shift is clear: we cannot ask people to help us save lives if we do not show them how we will save their livelihoods pic.twitter.com/OAqkioUHcw
— Torsten Bell (@TorstenBell) March 21, 2020
This formulation “lives and livelihoods” makes sense to individuals. In the immediate few months we will face the prospect of not living, thereafter the emphasis will consider a new post Covid world. At some stage there will be a realisation that we have an 80% chance of being infected.
So is the economic case: wage guarantees give firms confidence not to fire and reassure workers that they do not have to cut back hugely. Without this action the recession would be hugely deep. pic.twitter.com/cSGJ59vdp3
— Torsten Bell (@TorstenBell) March 21, 2020
So although it isn’t business as usual, we need to behave (economically) as if it were. Simple things like continuing to invest in pension plans are a part of this. We have to live not just to survive the present but to ensure our future livelihoods.
And it’s not just wage guarantees where we’re seeing the tectonic plates of policy and politics move – a Government that was until yesterday overseeing benefit cuts is now putting in place big increases in the social security safety net pic.twitter.com/efd9vtGa7h
— Torsten Bell (@TorstenBell) March 21, 2020
It has taken this crisis for Government to realise the inadequacy of our social security as a safety net. While the Government’s underwriting of wages is temporary, the FT suggests the upgrade in benefits won’t be.
This sea change in politics and policy is about the crisis – but some of the change it brings will, or certainly should, last pic.twitter.com/PZ3acLTxxG
— Torsten Bell (@TorstenBell) March 21, 2020
It is easy to make political points here; yes- much of this looks like the Corbyn blueprint, but I think it very unlikely that even had Labour won, there could have been a consensus in the country behind these measures. What the Government is doing is embracing collectivism, while it has the chance. For the first time this century, the phrase “one nation conservatism” has some meaning.
The big picture: we’ve decided to collectively share more of the pain of this crisis. Saying we’re all in this together is something a number of Tory Chancellors have done. It’s not always rung true. But it was certainly more true at the end of yesterday than the start pic.twitter.com/5Z8JyJtWuR
— Torsten Bell (@TorstenBell) March 21, 2020
