The Great Debate UK

Britain’s 8 million renters are a key electoral battleground

–Stephen Evans is a former Senior Policy Advisor for HM Treasury and Director of Employment and Skills at Working Links. The opinions expressed are his own.–

Estate agents boards are lined up outside houses in south London June 3, 2014. REUTERS/Andrew WinningEstate agents boards are lined up outside houses in south London June 3, 2014. REUTERS/Andrew WinningAsking prices for London houses have risen by £80,000 since the start of 2014 according to Rightmove. A three-bedroom house in London increases in value more each day than the average Londoner earns, a sobering thought on your daily commute. These are just the latest startling figures on house prices, particularly in London and the South East, prompting concern from Mark Carney and all three major political parties.

To some extent this is a return to business as usual – rising house prices have long been the stereotypical topic of conversation for dinner parties. But rarely has this cut through into a major political topic, with the exception of Homes for Heroes after World War 1 and Right to Buy in the 1980s. This time it could be different, with Labour and the Conservatives pitching offers to Britain’s 8m both renters (promising longer tenancies and more stable rent rises) and property owners (Help to Buy offering easier access to finance).

Beyond these short-term pitches, however, our distorted housing market is a long-term cause of inequality and low social mobility – whatever the short-term trends.

Youth is the answer to the EU’s troubling voter turnout rate

MJC–Dr Marie Julie Chenard is Deputy Head of the Cold War Studies Programme at LSE IDEAS and Academic Officer for the Dahrendorf Symposium Project at the London School of Economics and Political Science. The opinions expressed are her own.–

The European elections are the second biggest exercise in democracy world-wide (behind India). Nearly 400 million EU citizens were eligible to vote their representatives to the European Parliament between the 22nd and 25th May, but only 43% actually did. What can be done to increase participation in elections that have an impact on 500 million people?

Scepticism about the state runs deep

–Sheila Lawlor is Director of the London think tank, Politeia. The opinions expressed are her own.–

As UKIP’s earthquake materialises, with the party topping the European poll and the Conservative party narrowly missing second place, a shift in the political landscape is underway. Even before counting of the council votes had finished, or that for the European parliament had begun, the message from voters was clear – people were returning to the values with which they most readily identify: socialist or conservative.

from The Great Debate:

Romney is powerless against Murdoch’s lash

Mitt Romney must be wondering where it all went wrong. With the president presiding over a jobless, barely perceptible recovery, with most Americans thinking Obama is on the wrong track, and with his healthcare legislation widely derided, the Republican champion should be coasting by now. Yet Romney has been languishing in the head-to-head polls for almost a year, and prominent conservative commentators are complaining.

It is rare to hear such a concerted chorus of disapproval, not least with the election just six weeks away. Rupert Murdoch, at least, can say to Romney, “I told you so!” In July, he warned on Twitter: “Tough O Chicago pros will be hard to beat unless he drops old friends from team and hires some real pros. Doubtful.” It was advice Romney could afford neither to accept nor refuse. To fire his staff at the behest of the media boss who controls the nation’s most unforgiving conservative news outlets would be to follow successive weak British leaders who bent to  Murdoch’s will, with tragic results. Tony Blair, Gordon Brown and David Cameron, to name just three prime ministers, are still trying to rid themselves of the taint.

from The Great Debate:

Why doesn’t Mitt Romney contribute to his own campaign?

Lately, Mitt Romney has been so consumed with fundraising that his aides have had to defend his absence from the stump. Like his foe, the Republican nominee is in the midst of a frenzied financial arms race. But one hugely wealthy individual has not yet been persuaded to part with much cash to support the Republican cause: Mitt Romney himself.

Mitt Romney is hardly the first wealthy individual to seek the White House. John F. Kennedy once quipped he had received a telegram from his father: “Don’t buy another vote. I won’t pay for a landslide.” But Romney, for whatever reason, has failed to use his personal wealth to pay his campaign’s bills. His refusal to self-finance is one of the mysteries of this campaign.

from The Great Debate:

Romney’s campaign into oblivion

Willard Mitt Romney was born with a silver foot in his mouth.

It is possible to forgive it as a congenital trait. After all, his Dad, the genial George Romney, successful head of the American Motor Corp and governor of Michigan (1963-69), lost his bid for the Republican nomination for the presidency in 1968 by setting a world record for the mass manufacture of gaffes. He had such a penchant for saying one thing and then retracting it, the reporter Jack Germond announced he was fixing his keyboard so that one keystroke produced “Romney later explained…” It was charming for a time to hear what George had said lately, but when he came back from a look at the Vietnam War, he announced he’d had “the greatest brainwashing anyone could get.” His rival Eugene McCarthy cracked that a light rinse would have been enough to relieve George’s neurological condition, but this time George had gone a gaffe too far. Some American prisoners released by the Chinese had renounced their U.S. citizenship, saying they’d been brainwashed, and primary voters had no enthusiasm for electing a president who might turn out to have been the Manchurian candidate. So we got Nixon and Agnew instead. Thanks, George.

Mitt was on a similar jag through the nomination process. “I like being able to fire people who provide services to me… My wife drives a couple of Cadillacs… I’m not concerned about the very poor, we have a safety net…” Men and women who’ve been looking for work for a year are supposed to appreciate the irony when he opens up: “I should tell my story. I’m also unemployed.”

from The Great Debate:

Is Murdoch trying to sink Romney?

Rupert Murdoch should never go on holiday. It only makes him grumpy. He returned last month from cruising on his yacht off the coast of Croatia looking for a scrap. When Steve Jobs invented the iPad, he could hardly have imagined the havoc caused by one crabby old geezer letting rip on Twitter. Murdoch, a genius with the snappy tabloid headline, didn’t need all 140 characters to reduce Romney’s campaign to toast. “Tough O Chicago pros will be hard to beat unless [Romney] drops old friends from team and hires some real pros,” he wrote, adding the fatal one-word zinger: “Doubtful.”

Romney met Murdoch recently for a secret chat about how things were going on the campaign trail, but the relaxed Republican nominee presumptive, perhaps with his lavish family vacation at Lake Winnipesaukee, New Hampshire, on his mind, said he thought everything was just dandy. As Murdoch’s editors know to their cost, when the antipodean grouch asks how things are going it means he thinks things are going badly. As Romney’s minders did not issue a handout about the disastrous meeting, the lazy fourth estate did not know it was going on and so did not report it. But Murdoch took to his Twitter account to let the world know he was NOT HAPPY.

from The Great Debate:

Is America tipping toward a British system of government?

Sixty years ago in London, Queen Elizabeth was crowned in succession to her father, the now famously stammering chain-smoker George VI. For most Brits the queen’s Diamond Jubilee is a chance to celebrate her reign with street parties, fireworks, concerts, and pageants along the Thames. They will be toasting the woman who has so far presided over 12 prime ministers, including perhaps the greatest of them all, Winston Churchill.

It is a mark of Elizabeth’s benign demeanor and quiet charm that she will be celebrated not only in the 54 member states of the Commonwealth, the independent nations that were Britain’s former colonies and dominions, but around the world, too. Few countries do pomp as well as the Brits, as the weddings of Prince William to Kate and Prince Charles to Diana attest. But not all Americans, when they watch the Jubilee, will  grasp the true role of the queen.

from MacroScope:

Can Greek public opinion be turned?

So we’ve got the fresh Greek elections we expected and markets, despite the inevitability that we would get here, have reacted with some alarm. European stocks have shed  around 1 percent, and the harbour of German Bunds is pushing their futures price up in early trade. The Greeks will try to form a caretaker government today to see them through to elections expected on June 17.

The key question is whether the mainstream parties can mount a convincing campaign second time around, playing on the glaring contradiction in SYRIZA’s position (no to bailout, yes to the euro) and essentially turning the vote into a referendum on euro membership, which the overwhelming majority of Greeks still support. Don’t count on that. SYRIZA remains ahead in the polls.
To be able to pull it off, PASOK and New Democracy will need some help from Europe. There have already been hints from Brussels that if a pro-bailout government is formed, Athens could be given some leeway on its debt-cutting terms. But equally other voices are saying there is no more room for manoeuvre.

from The Great Debate:

The Keynes-Hayek showdown

By Nicholas Wapshott
The views expressed are his own.

Eighty years ago an anguished debate between two economists began in Britain -- and came to shape the politics of the world after World War Two. The differences between John Maynard Keynes and his nemesis Friedrich Hayek sharply described alternative approaches to addressing the ebb and flow of the business cycle, with Keynes arguing that to put the jobless back to work governments could and should intervene in the market and Hayek insisting that such actions were based on an inadequate understanding of how economics really worked and would only delay the day of reckoning.

That snarky disagreement was so vicious and ill-mannered that one old-school economics professor described it as “the method of the duello” being “conducted in the manner of Kilkenny cats.” On Tuesday, in the Asia Society on Park Avenue, New York, two teams of economists, one representing Keynes, the other Hayek, will slug it out before an audience of 250 and bring the debate to America. Seventy years ago, Keynes’s ideas were eagerly embraced by young American economists who began implementing the Cambridge economist’s ideas first in Franklin Roosevelt’s administration, then in every government until Jimmy Carter, when Hayek’s disciple Milton Friedman introduced monetarism as a guiding principle.

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