[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” background_animation=”none” css_animation=””][vc_column][vc_column_text]If trust in capitalism were a contract, then the public put their faith in enterprise on zero-hours some time ago.
This week the UK opposition Labour Party exploited dissatisfaction with the status quo to set out a new prospectus for managing the economy at their annual conference. Proposals that just two years ago were deemed ‘radical’ enjoy such support that they are now mainstream. Labour would hand one in ten shares of listed companies to workers and renationalise energy, water, railways and the postal service.[/vc_column_text][vc_single_image image=”697″ img_size=”full” qode_css_animation=”” css=”.vc_custom_1538416682813{margin-top: 32px !important;margin-bottom: 32px !important;}”][vc_column_text]Response? Ducking a direct confrontation with the politicians, businesses looked to lobby groups to defend the principle of private enterprise. The gulf in responses – from absent to absurd to feisty – issued by the champions of capitalism underlined the challenge of mounting a public defence with an eye to retaining private influence.
EnergyUK supported the focus on energy efficiency but omitted any reference to the prospect of renationalisation within the next electoral cycle. The IoD mounted a fiercer defence while the British Chambers of Commerce (BCC) seemed to catch a feverish cold after likening Labour’s plans to a chill wind. In a jarring sense of their own significance, the BCC said Labour “must” work closely with business because success depends on partnership rather than “dictation or dogma”.
But it was the CBI’s conciliatory tone that gave away how far public attitudes and debate have shifted in Labour’s direction. In the face of the party’s wrecking ball and plans to build an entirely new economic model, CBI Director General Carolyn Fairbairn appealed to the Party to “meet business halfway”.
Impact? Business groups talked a good game about sharing Labour’s aims on fairness but with few ideas on how the principles of economic freedom could underpin a fairer society, the mix of mollification, warnings and absenteeism did not compete with Labour’s cleverly persuasive pitch.
What could be done differently? The slickness of Labour’s conference machine seems to have been unexpected and perhaps the preoccupation with Brexit and the coming cliff-edge has seen leaders miss the slow atrophy of public confidence in capitalism, which is in a full-blown reputational crisis.
The battle of ideas still has some fight left in it. Arguably there hasn’t been enough creative destruction since the financial crisis with cheap money sheltering uncompetitive firms. At the same time, an era of new technology that was supposed to bring us more choice has created powerful network effects, seemingly out-of-control tech giants and bigger monopolies than ever. The CBI has made a start in campaigning for the ‘value’ of business but with such widespread and deep mistrust of industry’s motives, more is needed if enterprise is to be seen once more as the most powerful means for social mobility.
Perhaps that means a return to capitalism’s tenets to take on its own vested interests and ruthlessly unleash a new wave of competition and the break-up of monopolies. This week has shown that capitalists are the radicals now and must make their case for the consumer over the producer and demonstrate their credentials as guardians of a meritocratic and democratic society.[/vc_column_text][/vc_column][/vc_row]
