Considering a crisis in capitalism

Ed Miliband is not often cited among the big winners in British politics. His five-year term as Labour leader ended in a humiliating election defeat. But that does not necessarily invalidate arguments he tried to make about injustice built into the UK economy, the systematic depression of wages and a shortterm profiteering culture that spread insecurity and inequality. Miliband’s analysis has subsequently been vindicated, to the extent that many Conservatives now talk about a crisis in capitalism. When Labour figures use that kind of language, the Tories denounce it as a slippery slope towards Bolshevism.

A non-partisan economic reform programme published last week puts forward a 10-point plan, which includes proposals to raise the minimum wage, rebalance the tax base so those with amassed wealth in capital and assets pay more, and replace business rates with a land value tax.

Some of the ideas, the recommendation to expand collective wage bargaining, for example, land outside Tory comfort zones. But the shortage of political bandwidth does not remove the need for serious, practical remedies. Sadly, the demand for viable policies in this area is certain to grow. The report comes at a time when British politics is illequipped to respond to its recommendations, but the insights it offers deserve a government capable of engaging with them.