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Re-Booting Capitalism a Liberal, Progressive Vision for Defeating the Statist Left and the Populist Right "Doing Well Is the Result of Doing Good

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Re-Booting Capitalism a Liberal, Progressive Vision for Defeating the Statist Left and the Populist Right HOW TO MAKE A CAPITALISM FOR THE MANY A REALITY RADIX PAPER NO 14 FEBRUARY 2020 Sir Norman Lamb THINK TANK FOR THE RADICAL CENTRE RE-BOOTING CAPITALISM A LIBERAL, PROGRESSIVE VISION FOR DEFEATING THE STATIST LEFT AND THE POPULIST RIGHT "DOING WELL IS THE RESULT OF DOING GOOD. THAT'S WHAT CAPITALISM IS ALL ABOUT." Ralph Waldo Emerson "WE HAVE TO FIND A WAY TO MAKE THE ASPECTS OF CAPITALISM THAT SERVE WEALTHIER PEOPLE SERVE POORER PEOPLE AS WELL." Bill Gates RE-BOOTING CAPITALISM A liberal, progressive vision for defeating the statist left and the populist right. Sir Norman Lamb Published in January 2020 by Radix Group Ltd www.radixuk.org ABOUT RADIX Radix is a non-aligned think tank for © Radix Group Ltd. The moral right of the radiCal Centre. We welCome people Sir Norman Lamb to be identified as from all parties and none. We challenge the author of this work is asserted in established notions and work to re- accordance with the Copyright, Designs imagine our societies. We focus our efforts and Patents ACt of 1988. Some rights on policy initiatives that can drive towards reserved. No part of this publication system change rather than putting sticking may be reproduced, stored in a retrieval plasters on the existing system. Our goal system or transmitted in any form or by is to work with you to revitalize our liberal any means, electronic, mechanical or democracies, re-define capitalism, and photoCopying, reCording or otherwise re-build community. We want all citizens for CommerCial purposes without the to live securely, with dignity, be active prior permission of the publisher. A CIP participants in society, and be free to catalogue for this publication is available pursue their own interpretation of the from the British Library. good life. ISBN (Electronic) 978-1-912880-12-6 Radix Brand and Layout: ACKNOWLEDGEMENTS Mark Huddleston With thanks and appreciation to David Boyle, William Cowie and Professor Colin CONTACT US Mayer for their invaluable help in putting RADIX, this paper together. The Raincloud Victoria, 76 Vincent Square, Westminster, London SW1P 2PD [email protected] 3 ABOUT THE AUTHOR The son of Hubert Lamb, a leading Following the 2010 general election, Climatologist, Norman Lamb studied law Norman served first as Chief Parliamentary at Leicester University and, after working Advisor to Nick Clegg, the Deputy Prime as a parliamentary assistant for a Labour Minister, and then as Parliamentary MP, built a career as a litigation solicitor, Under-SeCretary of State responsible ultimately specialising in employment for Employment Relations, Consumer law. He was partner of Steeles SoliCitors and Postal Affairs at the Department of and is the author of Remedies in the Business, Innovation and Skills, before he Employment Tribunal. Norman was eleCted was promoted to Minister of State for Care to NorwiCh City CounCil beComing Leader and Support at the Department of Health. of the Liberal Democrat opposition. He Norman served as the Liberal Democrats' first stood for Parliament in North Norfolk Shadow Health SeCretary from 2015 to in 1992. He was eleCted in 2001, and 2017, and has continued his campaign stood down at the 2019 general election. to achieve equality for those who suffer In 2005, he was appointed Shadow from mental ill health. He was eleCted SeCretary of State for Trade and Industry, Chair of the SCienCe and TeChnology Championing the Case for employee share Select Committee in July 2017. Norman ownership in Royal Mail. In 2006, he received a knighthood in the Queen's became Liberal Democrat Shadow Health 2019 Birthday Honours for publiC and SeCretary. political service, which noted in particular his mental health work. In November 2019, the Political Studies Association presented Norman with the Best Use of Evidence award in recognition of his Select Committee’s work. 4 radix.org.uk EXECUTIVE SUMMARY The flaws in our model of capitalism Conventional solutions may have have fueled a growing divide between reduced unemployment but they have the owners of capital and everyone else. tended to replaCe it with employment that pays too little. That is now one of Nor Can one disConneCt the moral and the main drivers of poverty in the UK1 the eConomiC. The more the eConomiC and elsewhere. We have left other areas realm gathers to itself, the more of the loCal eConomy untouChed as we questions of human destiny, right and maintain sections of the population in wrong, beCome important. subsidised dependence on low wages or Business Cannot and should not operate zero-hour contracts. in a moral vacuum. This paper covers issues including the CONVENTIONAL SOLUTIONS B-Corps phenomenon, measuring the HAVE NOT WORKED. WE suCCess of companies by one narrow NEED A NEW ECONOMIC yardstick, monopolies and mutual SETTLEMENT. ownership. BUSINESS CANNOT AND We need a new economic settlement SHOULD NOT OPERATE IN A that recognises the vital importance of MORAL VACUUM. health, and Clean air, and a sustainable natural environment to supporting the loCal eConomy, and aCCepts that It ConCludes that we need a series of someone should be acCountable for new approaChes to business and to the rebuilding them. A poliCy framework economy that allows everyone involved that accepts that prosperity matters and to share in the prosperity Created. The understands that the task of eConomiCs old assumptions of the Fabian left, that is to fan it into life giving everyone a you Can tax soCiety baCk into shape, no stake. Margaret ThatCher enabled many longer seem to be working. We urgently people to buy their homes. But for need to find ways that the economic others, nothing Changed. system itself can find a better balance. Now is the time for a more profound Change - for ownership of a stake in the enterprise where you work to become the norm rather than the exception. 1. (https://www.jrf.org.uk/sites/default/files/jrf/files-research/uk_poverty_2017.pdf) p.19 5 Twelve recommendations to revitalise our economy and reboot capitalism for the twenty-first century: 1) Streamline the creation of employee 4) Set new ‘Good Company’ rules for public owned businesses and the transfer procurement setting clear requirements of ownership of businesses to their of business - based on the B-Corp employees, along with a programme to concept with levels of requirement raise awareness amongst advisers and linked to size. No burdensome business owners. additional regulation - but based on enlightened self interest. Good, 2) Set a new lowest rate of corporation sustainable employers benefit. The tax, only applicable to those companies public benefits. Public utility water which share prosperity equitably with Companies should be required to meet staff (either directly and/or through set governance standards, following employee ownership trusts), recognising the lead given by Anglian Water. their right to benefit from success, helping to create a new enterprise 5) Devolve power radically, including over owning democracy. setting taxes, to our great cities and regions enabling them to determine 3) Reform company law to widen and their own destiny, empowering local strengthen duties from the current innovation. narrow focus on shareholder value, introducing an obligation to define 6) Use the upcoming decampment from purpose and to Consider the interest the Palace of Westminster to move our of not just shareholders but other national Parliament to the North of stakeholders too. (See also RADIX England. Finally, the UK’s economic paper Beyond Governance).2 and political capitals would be separated – and the Country would be permanently rebalanCed. That would create a Northern ‘Powerhouse’ in its most literal sense. 2. See https://radixuk.org/papers/beyond-governance-an-economy-that-works-for-everyone/ 6 radix.org.uk 7) Use a Green New Deal to tackle the 11) Set a route to a more flexible environmental emergency, delivering working week, promoting radical a regenerative economy which is models of work where hours fall and supported by new investment in green employment is equitably shared. As industries, delivering new skills and jobs the Fourth Industrial Revolution across the country. gathers pace, employees will benefit from improved work/life balance, 8) Set tough new competition rules to businesses will benefit from the challenge concentrations of power and increased productivity it leads to - wealth and to drive up wages, drive and society will benefit as people down prices and improve consumer with more leisure time decide to give choice. (See also RADIX paper Freedom to Choose).3 more back through volunteering. 12) Give incentives to companies to 9) Strengthen competition regulators improve staff well-being by introducing so they can deal with global tech a time-limited fiscal incentive (suCh companies and other concentrations as a two-year disCount on business of power effectively, to make sure rates or National Insurance) for that they cannot stifle competition by businesses which pursue evidence- simply purchasing competitive start-ups based action to help their staff. This which might otherwise threaten their Well-being Premium will Confront dominance. the Costs of presenteeism and 10) Provide a new entitlement to lifelong sickness absence which result from retraining and education to equip the failure to taCkle mental ill-health. all citizens for the new economy and soften the disruptive impact of automation. 3. See https://radixuk.org/papers/freedom-to-choose-why-competition-policy-affects-us-all/ 7 1. THE INNOVATORS For 18 years now, I represented North Norfolk in parliament. Our SIMPLY MAKING MONEY IS NO LONGER ENOUGH. county has a proud reputation for COMPANIES CAN MAKE A ‘doing things different’. Indeed, ‘Do POSITIVE DIFFERENCE IN Different’ is the University of East THE WORLD Anglia’s motto. That state of mind is embodied in the approach of one The old idea that the sole purpose of local entrepreneur, Phil Hayton, who a company is to maximise shareholder set up the speed detector flashing value still clings on in conservative road signs manufacturer Westcotec.
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