In this member post, Young Fabian member Max Krahé argues that Labour should own up to its economic mistakes, or risk losing the argument at the next general election.
In order to win the next general election, Labour must grapple honestly with its economic past. It should highlight its mistakes, and not overstate its achievements. Labour has everything to win from admitting mistakes, and everything to lose from denying them.
This article is not about actual economic analysis and will not dissect Labour’s economic record. It is about taking a step back and looking at narratives that can credibly be constructed. It is concerned with the image of Labour’s economic management, not with the actual record.
Labour got a lot of economic decisions right in government. But attempting to tell a story about ‘Labour’s decade of economic golden years’ is foolish: in the midst of the largest recession since 1929, a narrative of success is unlikely to wash.
The recession started under Labour, and in a sector closely associated with the Labour boom. People who have lost jobs, seen their savings wiped out, or find themselves in negative equity do not care if inflation was under control for the last 10 years. Labour’s economic successes are too far removed from most people’s day to day experience.
Negative stories on the other hand, including of course the Tory ‘deficit denier’ narrative, fall on fertile ground: they effectively exploit a gulf between positive Labour statements, e.g. ‘look at how well we managed the economy’, and people’s daily lives.
As a simplistic positive narrative about the economy is not viable (nor indeed true), what should Labour’s message be? A simple story might be this: Yes, debt was on the high side, and not every pound spent was spent wisely. The deficit was structural.
Nostra culpa, nostra maxima culpa*.
It’s not a line that should be used unprovoked, but could form part of any response to the next round of deficit denial and ‘Labour mess’ allegations.
How might it play out? By accepting the Conservative’s accusations we end the argument about national debt levels, and vacate ground on which the Conservatives are winning. Reducing debt levels is generally perceived as a good thing (as distinct from the narrative of ‘cuts and austerity’). So let’s not talk about debt.
Of course, the Conservatives may continue to attack ‘Labour’s high deficit’. So much the better: criticising a previous government’s policy would make the Conservatives look like an opposition party, undermining claims of being forward-looking and concerned with growth and the future of this country. It would lend support to our rival narrative of the ‘no-vision austerity Tories’.
Compare this with a continued defence of the deficit. In the short term Labour risks looking like a sore loser, and the deficit denier story may sink in for good (dishonesty is probably more damaging than excessive spending).
Even if the Tories eventually stop making ‘deficit denier’ accusations, this would merely freeze the debate. At the next general election expect the Tories to wheel out the same accusations: Labour cannot be trusted on the economy, they are still deficit deniers etc etc. Unless a credible counter-narrative has been established in the meantime, these statements will fall on fertile ground.
So if we don’t settle this debate now, we risk being branded (successfully) as economically incompetent at the next general election. Or we admit to our mistakes at a later time, taking the inevitable hit in the polls closer to the election.
The time to own up is now.
We should not be afraid of buying into the Tory story of the ‘Labour mess’. This will settle the issue, neutralise one of the more potent rhetorical weapons in the Conservative armoury, and will do so with plenty of time to spare before the next elections.
If we do not own up to our mistakes now, we leave ourselves open to Conservative attacks. And doubts about Labour’s competence on the economy are likely to re-surface at rather inconvenient times.
*Admitting to leaving behind a bit of a mess shouldn’t taint Labour as economically incompetent, if managed well. In owning up to the ‘Labour mess’, we regain the credibility needed to argue that 2008 was 1929 but 2009 was not 1930. Yes, debt may have been on the high side, but let’s not miss the wood for all the trees: Labour has prevented a catastrophic collapse of the banking sector; Labour has saved the country from the brink of an economic depression. Maybe it’s ok if we didn’t leave the kitchen spotless in the process?