Opinion

John Lloyd

A tale of two citizenships

John Lloyd
Nov 12, 2013 18:25 UTC

When New York City Mayoral-elect Bill de Blasio strode on stage for his victory speech last week, he said that “the people of this city have chosen a progressive path.” But will they stick with it (and him)?

The international media, at least, are skeptical. The Economist opined that “New Yorkers may yet miss (Michael) Bloomberg.” The Wall Street Journal gave generous space to doubters like the omnipresent Professor Larry Sabato of the University of Virginia’s Center for Politics, who said that de Blasio “could go too far left, because there’s a tolerance for moderation, not necessarily for liberalism.” The Financial Times’ columnist Christopher Caldwell took an opposite, but still skeptical, tack, questioning how far his leftism would really go: “de Blasio would be more like his predecessor than meets the eye.” Only the liberal New York Times was generally welcoming, but covered itself against his possible failure by noting that “he is a politician who has yet to prove himself as a manager, and it will be a steep learning curve.”

To the UK Labor Party’s leader Ed Miliband, however, de Blasio’s victory was particularly sweet. I recently talked to a member of his “shadow cabinet” — the group of opposition parliamentarians that correspond to the government’s cabinet — and was told that Miliband’s pitch of a “one nation Labor party” was based on inculcating an ethic of solidarity among citizens and reversing the rampant individualism that Miliband sees encouraged by Prime Minister David Cameron (and that de Blasio sees as having been fostered by ex-Mayor Bloomberg). So while recognizing that Britain is not New York, the two men share a common sense that a new civic mindset is as important as any specific measures.

But how to put that into place when there is a well of distrust and apathy for politics, particularly among the young? My contact in the Labor shadow cabinet admitted that under-30s were “in another world,” while a recent UK report revealed them to have “a considerable aversion to formal, professional politics and to political parties and national politicians.”

In many western states today, the governing parties are unpopular — and the opposition sometimes even more so. That’s true in France, Japan, Italy, Spain, the UK and the U.S. To state the obvious, most people don’t trust politicians: a euro barometer survey found that, since the start of the euro financial crisis, trust had halved.

Richly deserved

John Lloyd
Mar 6, 2013 14:14 UTC

The tale of two worlds – the fabulously rich and the increasingly poor – is a defining narrative of contemporary life, and it continues to throw up vivid reminders, at once doleful and grimly hilarious.

One of the latest examples was told by the writer and provocateur Matt Taibbi, famed for having described Goldman Sachs as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

In a recent Rolling Stone blog post, Taibbi related a confrontation between Jamie Dimon, chief executive of JPMorgan Chase, and the analyst Mike Mayo of Credit Agricole Securities during an investor conference call earlier this year. These calls are where analysts get to question the masters of the financial universe about their actions. Mayo asked Dimon if investors would not prefer a bank – he offered UBS as an example –that had a higher capital-to-debt ratio. The exchange then went:

France’s taxing expatriates

John Lloyd
Dec 26, 2012 18:32 UTC

Gerard Depardieu, 64 years old before the year’s end, is an actor of great range and talent. He could play the naïve, finally broken farmer in Jean de Florette; the heroic, swashbuckling, great-nosed Cyrano de Bergerac; the slobbish but romantic Georges in Green Card…and so on, and on, through scores of films and TV series, made at a rate of nearly five a year for over forty years. He acquired a fortune, restaurants, vineyards and many awards, capped by the Legion d’Honneur.

Earlier this month, he became an expatriate to escape French taxes. He returned his passport to the government, and moved from Paris to the village of Nechin in Belgium, just over the French border, where he joined a community of the French rich. They live there to enjoy the low taxes on stock and capital gains – low compared to those in France, where the Socialist government has imposed a marginal tax rate of 75 percent on incomes over 1 million euros ($1.2m).

He leaves in bitterness, with the curses of his government ringing in his ears. Jean-Marc Ayrault, the Prime Minister, said he was “shirking his patriotic duties.” He said that the rich were leaving “because they want to get even richer… we cannot fight poverty if those with the most – sometimes with a lot – do not show solidarity and a bit of generosity.”

Wanted: Equitable capitalism, profitable socialism

John Lloyd
Oct 23, 2012 16:26 UTC

Socialism – real, no-private-ownership, state-controlled, egalitarian socialism – has been off the political agenda in most states, including Communist China, for decades. The mixture of gross inefficiency and varying degrees of repressive savagery that most such systems showed seems to have inoculated the world against socialism and confined support for it to the arts and sociology faculties of Western universities. But what was booted triumphantly out the front door of history may be knocking quietly on the back door of the present. The reason is inequality.

Pointing out inequality is a political attraction these days, and as good a dramatization of that as any is in the comparison between what Tony Blair, Britain’s Labour Prime Minister, said about it in 2001, on the eve of his second election, and what Conservative leader David Cameron said about it in a speech in 2009, soon before the 2010 election that made him Prime Minister. Blair, questioned about rising inequality, responded that while he was concerned with poverty and its alleviation, he didn’t lose sleep about the rich being rich. “It’s not”, he said, invoking Britain’s most popular sports figure, “a burning ambition for me to make sure that David Beckham earns less money.”

Cameron, referring to the recently published The Spirit Level by Richard Wilkinson and Kate Pickett – a detailed argument that inequality is bad for everyone, even the rich – said the book showed that “among the richest countries, it’s the more unequal ones that do worse according to almost every quality-of-life indicator.” That left and right should so switch places marks the shift that has taken place in the past decade, from living in societies where the tide of growth lifted all boats to one where most fear they’ll soon be sinking (assuming they already aren’t).

As elections approach, France contemplates a bonfire

John Lloyd
Apr 13, 2012 18:29 UTC

It’s too early to hear the sound of the tumbrils rolling, or the excited click-clack of spectators’ knitting needles as the aristos are taken to the guillotine, but don’t bet that a modern bonfire of the pretensions of the very rich won’t happen, and maybe soon. (Peacefully, I hope: Revolutions are mostly horrible affairs.)

The French allusion occurs because the presidential election campaign opened officially there earlier this week, and the first round of the two-stage voting process will take place on Sunday Apr. 22. From the results of that first pass for the French people, we should see something of central interest and concern to our times, with an import far beyond France. We’ll see how mad people are, and how deeply (or not) they feel they shouldn’t take it any more.

The smart money remains on one of the two front-runners in the race: President Nicolas Sarkozy, the candidate of the right, who’s campaigning as if his life depended on it; and François Hollande, of the Socialist Party, an altogether more laid-back man whose travel-to-work transport was, until recently, a scooter (the kind with a motor – modesty has its limits). They both have been hovering below 30 percent in the polls, while 10 percent is taken by François Bayrou, a veteran campaigner and a liberal, centrist, sensible sort of man, who is trying to pump up votes for a job that is unlikely ever to be his.

The rich versus the seething masses

John Lloyd
Mar 21, 2012 15:58 UTC

In a remarkable column in Italy’s paper of record earlier this week, the columnist Ernesto Galli della Loggia flayed his country’s ruling class. The country is witnessing, he believes “a kind of incontinence and exhibitionism without restraint, a compulsive acquisitiveness,” rife within the highest circles of Italian society. This, mind you, after the departure of the highly acquisitive former Premier Silvio Berlusconi.

“It seems,” he writes, “that in this country, for bankers, for entrepreneurs, for senior officials, for celebrities and for politicians, for those who, in short, count for something, any reward is never enough, any privilege or treat is never too excessive, any show of wealth is never over the top.” The politicians, if not the richest, are still the most degraded, because of their elective positions of trust. The press, the justice system and the frequent leaks of the many wiretaps that Italy’s magistrates order show the snouts of a political class that are too often deep into troughs of money, luxury and privilege, funded either by the Italian taxpayer or by private interests avid for political favor.

Flaying the rich in one form or another is becoming a habit everywhere where freedom reigns in the world and even — more carefully and more dangerously — where it doesn’t, as in Russia and China, where the very rich often have the backing of the state, or sometimes, are the state. It’s happening because the financial crash is making many people poorer, and most people poorer relative to the rich, who still contrive to get richer and richer. The stagnation in middle- and working-class incomes in many parts of the Western world is often turning into real decreases in spending power. Insofar as that goes on — and a fragile improvement in Europe and North America may take hold, and once again raise all boats, or it may not — then privileges, treats and shows of wealth become more and more galling, even to moderates not previously given to envy or militancy.

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