Guardian UK: At last, the party of social justice has woken up

At last, the party of social justice has woken up
It was far from perfect, but yesterday confirmed Labour's escape from the grip of the rich - and a Tory reversion to type


Polly Toynbee
The Guardian, Tuesday November 25 2008


The New Labour era is over - welcome to social democracy. Following in Obama's footsteps, it is suddenly safe to tax the rich and spend to protect jobs. Keynes and Roosevelt are the world's spirit guides through this crisis, because in a crisis social democracy is what works. Yesterday that faith allowed Labour to shed its disguise and follow its nature in a £20bn shower of spending. Yesterday saw the Conservatives strip off their sheep's clothing too, as George Osborne tore into the "unexploded tax bombshell" with gusto, merrily defending the aspirations of the wealthy. Now we can see both parties naked as nature intended, and at last comfortable in their own skins.

Symbolism is everything in the volatile irrationality of these times. When markets zigzag between exuberance and despair, confidence is the only currency. The language, the mirage, the smoke and mirrors, it all matters as much as the substance. No one alive has ever lived through such a crisis or faced the danger of a slump so deep, so if enough people say that the right thing was done yesterday, then it was. The stock market rewarded Alistair Darling with the biggest ever one-day rise - so for now, it worked.

For years New Labour has forgotten about the power of symbolism. As wealth at the top soared, Tony Blair and Gordon Brown had no word of reproof for gross greed and excess. Relaxed about the filthy rich, they "celebrated" vast salaries that spilled over to contaminate the public sector too. On Labour's watch the top 10% consumed nearly a third of national earnings and 54% of personal wealth. This comes too late to check the bonus culture that wrecked the economy, but better late than never. The words are spoken: "Those who have done best in the last decade will pay more" - an average of £3,168 more for earners over £140,000 in 2011.

And the sky has not fallen in after all. On the contrary, some sense of the rightness of things begins to be restored. Of course the mega-rich should pay a fairer share of tax. Of course low earners deserve a fairer share of rewards - the cleaners, caterers and carers who earn too little to keep their families above the poverty line - though they didn't get it this time. ......(more)

The complete piece is at: http://www.guardian.co.uk/commentisfree/2008/nov/25/pre-budget-report-economy1