Capitalism in Crisis?
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JESSE NORMAN MP MARTIN LEWIS on responsible capitalism has money on his mind Centre Write Capitalism in crisis? Summer 2016 | 1 paul goodman | the rt hon ed vaizey mp | flick drummond | the rt hon lord maude Contents EDITORIAL Kamile Stankute 14 Editor’s letter Unlocking potential Laura Round 4 Pamela Dow 15 Director’s note Skype session with... Ryan Shorthouse 5 Martin Lewis 17 MARKETS THAT WORK THE RISE OF THE STATE? FOR EVERYONE Should politicians nudge Mending markets human behaviour? Scott Corfe 7 Professor Robert Metcalfe 18 Can we make capitalism healthy? Theresa May: free-marketeer? Dolly Theis 8 Mark Littlewood 19 Back to work Fixing the broken energy Flick Drummond 10 market Making the consumer king John Penrose MP 20 James Plunkett 12 A property-owning Britain Does business do enough? Alex Morton 22 Bright Blue is an independent think tank and pressure group for liberal conservatism. Director: Ryan Shorthouse Page 28 The Centre Write Chair: Matthew d’Ancona interview: Jesse Norman MP Board of Directors: Rachel Evening Standard Johnson, Alexandra Jezeph, Diane Banks, Phil Clarke & Richard Mabey Editor: Laura Round www.brightblue.org.uk Printers: Aquatint, www.aquatint.co.uk Page 17 Martin Lewis Cover and typesetting: discusses mental health and money Eleanor Hyland-Stanbrook Capitalism is core to conservatism Energising the industrial strategy Michelle Hubert 40 The Rt Hon Lord Maude 23 Sam Hall 34 Prosperity through productivity The conservative state: small, Antoinette Sandbach MP 42 strong and strategic IS DEVOLUTION THE Be prepared Paul Goodman 26 SOLUTION? Chris Green MP 43 Government for the people Apprenticeship nation THE INTERVIEW and for the regions The Rt Hon Robert Halfon MP 44 The Centre Write interview: 28 Stephen Clarke 35 Creative prosperity Jesse Norman MP Two decades of devolution The Rt Hon Ed Vaizey MP 46 Paul Masterton MP 36 BRIGHT BLUE POLITICS Reviving the North BOOKS & ARTS Why I’m a Bright Blue MP Jonathan Moore 38 Exhibition: Giacometti Neil Parish MP 32 Eamonn Ives 49 Bright Blue research update INDUSTRIAL STRATEGY Film: Dunkirk James Dobson 33 Spades in the ground Fiona Smith 50 Page 26 Paul Goodman on Page 23 The Rt creating a smarter state Hon Lord Maude on pro-enterprise conservatism picapital.co.uk Page 46 The Rt Hon Ed Vaizey MP on the importance of the UK’s fastest growing sector Page 10 Flick Drummond outlines how to support women returners EDITORIAL laura round is the Editor’s letter Editor of Centre Write and Communications Manager at Bright Blue One of the most striking lessons from the last general towards a more interventionist agenda, Mark Littlewood election is the collapse in the proportion of those aged from the Institute of Economic Affairs (p.19) argues under 40 voting Conservative. As Ruth Davidson - the that in order to win the next election and to ensure a Scottish Conservative leader - has written, unstable successful Brexit, the Conservatives needs to passionately employment and wage stagnation - coupled with high rental advocate for freer markets. Indeed, one of the original and transport costs, as well as increasing barriers to home Tory modernisers, the Rt Hon Lord Francis Maude ownership - go some way to explaining why many young (p.23) says that a Conservative Party that doesn’t appear adults don’t think the current system is working for them. to be passionately in favour of free enterprise and Capitalism has delivered demonstrable economic successes, wealth creation lacks credibility and authenticity. The yet people seem to be losing faith in its ability to make editor of ConservativeHome, Paul Goodman (p.26) their lives better. This is a huge challenge and has triggered argues for a streamlined state. And former Number significant debate on the centre-right of British politics. 10 adviser, Alex Morton (p.22), outlines what the The Prime Minister spent her first year in office setting Government should do to boost home-ownership. out a narrative for a larger role for the state, centred around Earlier this year, Theresa May launched the “the good that government can do”. This narrative was Government’s new modern industrial strategy. One aim lost in the general election campaign. As was hard-won of this to reduce inequalities between different regional successes on the economy by Conservative Governments economies in the UK. The second part of the magazine since 2010. Nor did the party hammer home positive, explores whether devolution really is the solution to compassionate, liberal and pro-enterprise values – many fixing this imbalance. Stephen Clarke (p.35) from the of which, I suspect, are shared by younger generations. Resolution Foundation looks at how the industrial With the advancement of the hard-left under Jeremy strategy can ensure growth is spread evenly across the Corbyn, the Conservative Party really must learn from country. Newly elected Scottish Tory Paul Masterton its mistakes to ensure it wins the next election. Part of this MP (p.36) explains why Conservatives should continue challenge lies in defending and reforming free markets. This to champion Scottish devolution within the UK. is a topic covered in my interview with brainy Transport One of the main aims of the industrial strategy is to Minister, Jesse Norman MP (p. 28), who says the challenge boost productivity. Antoinette Sandbach MP (p.42) for conservatives is to mend broken markets and not throw points to the importance of innovative education and its “hands up and run for a certain kind of crypto-Marxism”. close ties with Europe to improve it. Former Minister The Government is clearly keen to ensure markets for Culture and Digital, the Rt Hon Ed Vaizey MP are fairer and that consumers get a better deal. Scott (p.46), urges the encouragement of creativity to untap Corfe, chief economist for the Social Market Foundation talent and explains why the creative industries are an (p.7), argues that better consumer engagement and integral part of the industrial strategy. The new chair of bargaining power are necessary for markets to be fair. In the Education Select Committee, the Rt Hon Robert my Skype session with Money Saving Expert Martin Halfon MP (p.44), argues that Conservatives should be Lewis (p.17), he explains the link between money and loudly celebrating the apprenticeship revolution. I hope mental health. And James Plunkett (p.12), Director of this edition of Centre Write helps you navigate through Policy at Citizens Advice, discusses why non-choices the broad debate around responsible capitalism and, are damaging the proper functioning of markets. specifically, demonstrate the role the state can and should With the latest Conservative Party manifesto shifting play in achieving good economic and social outcomes.• 4 | Centre Write EDITORIAL Director’s note eliminating the structural deficit. on the ordoliberalism of post-war Anyway, this theory, among others, Germany, which advocates that a Ryan Shorthouse distracts from the unfortunate market-based society needs strong and brutal truth: the public were morals and rules – even government increasingly exposed to the poor intervention - if is to work equitably leadership and communication and efficiently. Hence the Prime ryan shorthouse is the skills of Theresa May during the Minister’s welcome targeting of Director of Bright Blue campaign. The manifesto, though vested interests and corporate rich on philosophy and principles, greed, with calls for workers’ voices lacked clear and concrete policies, in on company boards and greater So, what went wrong? This contrast to Corbyn’s. The manifesto transparency around the recruitment summer, there has been much soul- was emblematic, in fact, of May’s first and pay of different social groups. searching from Conservatives on year in charge: rousing rhetoric in set why they recently failed to win the speeches, but a lack of any substantial If conservatives are unable decisive parliamentary majority policies to truly tackle ‘burning to argue that capitalism almost everyone predicted. injustices’ and support those ‘just benefits most people, then Two clear points stand out. about managing’. Well, people are not they might as well pack their First, the substantial polling lead daft: actions speak louder than words. bags now and go home. the Conservatives initially had The flagship policy in the manifesto Of course it has and does over Labour narrowed during the on social care – to lift the guaranteed election campaign. Second, there amount someone could pass on If capitalism is to remain popular was a considerable shift in voting to their children to £100,000, but and effective, then individuals and intention to the Labour Party after to include within the means-test corporates do need to behave more the launch of the manifestos. calculation for domiciliary care responsibly. Markets are motored by the value of the family home, as is - and have consequences for – human Cabinet Ministers have not currently the case for residential beings, not just profit; that needs to been allowed the freedom care – was sensible, but was received be appreciated and acted upon by and profile to develop particularly badly. The closed clique more people. Conservatives should distinctive policy agendas, controlling government failed to build not abandon May’s ‘responsible in marked contrast to those a significant network of individuals capitalism’ agenda, therefore. under Cameron’s premiership and organisations who could shape Equally, though, Conservatives and support this policy – and, in need to be much more responsible Some Tories now claim that it fact, May’s programme in general. in how they talk about capitalism. is because the public are tiring of Cabinet Ministers, for example, have Some on the Left, especially under austerity. This is no doubt true not been allowed the freedom and Corbyn, have pushed a simple, among a small proportion of voters, profile to develop distinctive policy spellbinding narrative about Britain’s particularly among some public- agendas, in marked contrast to those economic model in recent years: that sector workers who have experienced under Cameron’s premiership.