When I was young, the head of our school was always yapping on about consequences. Whatever you did in life, and particularly in that school, would have consequences.
I am kind of wondering how it is that we are lost in a fit of hand wringing about financial industry reform.
What these people need is clear consequences to associate with their actions. Le'ts face it, they have been behaving like children, hands in the sweet jar while Mummy isn't watching.
And just like children they have been unable to stop themselves. They have gorged beyond any point of enjoying it, and made themselves sick. Economists tell us that consumption of any free good will be pursued until marginal utility is zero. These guys pushed marginal utility well into negative territory.
Perhaps they lacked the stout sort of upbringing I had, where a few years in a prison cell with your OWN TELLY looked like paradise compared to five minutes locked in a confined space with an irate father.
Either way, there need to be consequences. The minute a few of these guys are pictured, Jonathan Aitken/Kenny Lay/Conrad Black like on their way to prison, behavious WILL improve.
Unless that happens, they have got away with it. And like with all naughty children, that means they will carry on regardless.
Monday 16 July 2012
Thursday 5 July 2012
The Capture of the Left
In Marxist philosophy society is defined by the interaction between economic (social) classes. The state is theforum where this interaction is intermediated.
This kind of thing is generally termed class struggle.
In traditional western democracy, the idea is classes are more or less associated with political parties, the left with the lower class and the right with the middle class. Power alternates between parties or coalitions of the left & right. So far, so good.
Here is the West, we also have the notion of regulatory capture. Where a regulator, in associating closely with the leaders of the organisations under regulation, becomes part of that community. In so doing, the regulator becomes gradually less a creature of the general public, limiting those under regulation, and more a creature of those under regulation, a lobbyist for the regulated.
Regulatory capture often happens when there is an industry which is rich, or politically powerful. Or there is a revolving door from industry to regulator.
What I am thinking is the Labour party, and many European parties of the left, have gone through a process akin to regulatory capture.
These parties grew up from the people, and were sent to the seats of power to wrest control of the state from the ruling classes. Postwar, they were spectacularly successful, but ever since the process of regulatory capture has been growing, cancer like.
At the time the financial crisis began, the policies of the political left were indistinguishable from those of the political right.
The process of capture was complete.
Now Francois Hollande and Mr Tzipras are rebelling.
Perhaps Mr Hollande's Parti Socialiste can be recaptured from the establishment. In Greece Syriza is a new party. The traditional party of the left (PASOK) looks dead.
I am wondering if in the UK, and right across Europe, we need a new left. Can the old parties be recaptured, and are they worth the effort? Perhaps it would be better to let the establishment have their empty shells, and start afresh.
This kind of thing is generally termed class struggle.
In traditional western democracy, the idea is classes are more or less associated with political parties, the left with the lower class and the right with the middle class. Power alternates between parties or coalitions of the left & right. So far, so good.
Here is the West, we also have the notion of regulatory capture. Where a regulator, in associating closely with the leaders of the organisations under regulation, becomes part of that community. In so doing, the regulator becomes gradually less a creature of the general public, limiting those under regulation, and more a creature of those under regulation, a lobbyist for the regulated.
Regulatory capture often happens when there is an industry which is rich, or politically powerful. Or there is a revolving door from industry to regulator.
What I am thinking is the Labour party, and many European parties of the left, have gone through a process akin to regulatory capture.
These parties grew up from the people, and were sent to the seats of power to wrest control of the state from the ruling classes. Postwar, they were spectacularly successful, but ever since the process of regulatory capture has been growing, cancer like.
At the time the financial crisis began, the policies of the political left were indistinguishable from those of the political right.
The process of capture was complete.
Now Francois Hollande and Mr Tzipras are rebelling.
Perhaps Mr Hollande's Parti Socialiste can be recaptured from the establishment. In Greece Syriza is a new party. The traditional party of the left (PASOK) looks dead.
I am wondering if in the UK, and right across Europe, we need a new left. Can the old parties be recaptured, and are they worth the effort? Perhaps it would be better to let the establishment have their empty shells, and start afresh.
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