In this episode, we talk with Stephen Davis, Head of Education at the Institute of Economic Affairs, about the political realignment that's taking place in British politics and why it's so important to have a strong middle ground between the two major parties.
00:00:39.640Our brilliant expert guest this week is the head of education at the Institute of Economic
00:00:43.940Affairs, Dr. Stephen Davis. Welcome to Trigonometry.
00:00:47.000Glad to be here. Thank you for having me.
00:00:48.400Well, thank you for coming. And what a time to be here because exciting things are happening
00:00:52.540in British politics. And you've been talking about this for a long time. And before we
00:00:56.280get into that, just tell us a little bit about who you are, what's been your journey through life
00:01:00.240so us and our viewers know everything. Well, to start at the beginning, I suppose, I was born in
00:01:05.860Scotland in a place called Grangemouth, went to university in Scotland at St. Andrews. I'm a
00:01:11.300historian by training, although I talk a lot about economics these days. My family roots are all in
00:01:17.140Manchester and East Lancashire, Burnley to be precise, and Newton Heath in Manchester. Lived in
00:01:22.580Manchester since 1979, staunch city fan. I used to work at the Manchester Metropolitan University,
00:01:30.820Manchester Polytechnic as it was before then, but a few years ago I kicked the world of academia
00:01:35.500into touch and I went full-time into the think tank world which I'd been involved with for quite
00:01:39.840a long time actually and I worked first for a think tank in the United States called the Institute
00:01:44.640for Humane Studies and then at the Institute of Economic Affairs for the last nine to ten years
00:01:50.200or so and I do other kinds of freelance work as well so that's where I am at the moment really
00:01:55.660looking forward to City winning the title and denying Liverpool the title again and also you
00:02:01.940know taking a great interest in what's going on in the world right now well you've managed to
00:02:06.180trigger a big portion of our following already with those comments fantastic we're called
00:02:11.460trigonometry for a reason but it's it's so great to have you here because as I said we're recording
00:02:16.640this video come out about a week or so from now. But so far, you've been talking about a
00:02:24.340realignment of politics for a long time. And as we discussed before the show, not everyone
00:02:28.300was immediately kind of receptive to that idea. But you've been talking about it for five or six
00:02:33.020years. And it's actually happening. I think as we speak, 11 MPs have left their mainstream parties,
00:02:38.940eight Labour, three Conservatives, to create this independent group. So take us back to the
00:02:45.440beginning. What is this all about? Well, you need to distinguish between the factional moves in
00:02:52.240Parliament, which are fascinating and interesting, and on the one hand, unbelying that, the underlying
00:02:58.580structural changes in politics, which is what I mean by realignment. Now, the way to understand
00:03:03.940that is this. At most times, lots of people have disagreements about all kinds of things,
00:03:09.620But what we don't ever do in any country is elect lots of individual politicians who then form shifting ad hoc coalitions around each particular issue as it arises.
00:03:21.200What you find instead is that there's always one issue, or maybe two, which are the aligning issue.
00:03:27.540People group into large political blocs or tribes depending on the view that they have of that one big issue.
00:03:34.760Now, that tribe that agrees on one side of that big issue will probably have lots of
00:03:39.240internal disagreements about other issues, but that doesn't matter because politics is
00:10:28.600a whole list of quintessentially 1950s traditional British brands.
00:10:33.160The favorite brands of Remain voters were things like Uber, Apple, iMac, a whole range of very du jour, modish, trendy brands.
00:10:46.620That tells you a huge amount, which is that the division between Remain and Leave is actually just the expression of a much deeper, if you like, cultural divide,
00:10:56.320which is partly a division between old and young, partly between North and Midlands and the South,
00:11:01.560partly between professional and university educated and traditional working class or middle class,
00:11:06.640a whole series of social and cultural divisions like that.
00:11:11.100You talk about the divisions. I always try and think, how are we going to heal these divisions?
00:11:16.680Well, that's what politics is about. Realignments of this kind take place every 40 years or so.
00:11:22.640So we had one in the 1880s, 1885 to 1893.
00:11:45.880But what the democratic political process does is that over time, over 10, 20 years or so,
00:11:51.980And the sort of bitterness and starkness of that division is ameliorated.
00:11:57.260And actually, you do get the emergence of a center.
00:12:00.700I'm actually quite excited as someone who's horrified by the extremes on both sides,
00:12:05.460which seem to have kind of got hold of the microphone recently.
00:12:08.880And they're the ones that are getting all the attention, both on the left and on the right.
00:12:12.700I'm quite excited about the idea that you have a new centrist force emerging on the one hand.
00:12:18.300On the other hand, I look at the people who are forming this group, and it seems to me like the number one driving force behind their motivation in terms of creating this is really these are people who are vehemently opposed to Brexit.
00:12:33.060That's what's forced them to leave their parties.
00:12:36.180And as we were talking just before we started, that's not necessarily a very centrist point of view.
00:12:42.080So it's a party that's allegedly in the centre, or it's a group for now that's allegedly in the centre.
00:12:46.760a but. It's not actually. The thing is this, when you have a political realignment, what happens is
00:12:53.040that the center is redefined. Because when you have a stable alignment, when everybody knows
00:12:57.820that the big dividing issue is one particular question, you know where you stand on that issue
00:13:02.900and there's going to be a lot of people who are in the middle of that issue. So in the classic one
00:13:07.680of state control of the economy versus free markets, you had radical laissez-faire free
00:13:12.180marketeers on the one hand, you had people like Jeremy Corbyn, old-fashioned socialists on the
00:13:16.280other end, and then in between there was a middle. Now, when the alignment changes, when the issue
00:13:22.380that politics is aligned around becomes a different one, what you find is that the center is
00:13:27.740redefined, and people who were in the center on the old issue may not be in the center on the new
00:13:33.180one. Now, if the new aligning issue, as I argue, is internationalism versus nationalism, then
00:13:40.820people like Chukra Amuna, Anna Soubry, and all the others who've left to form this independent
00:13:45.360group, they're actually pretty far out to one extreme of that new alignment. So actually it's
00:13:50.660a mistake to think of them as centrist. The centre, what it is to be in the centre, is being redefined.
00:13:57.800On the other hand, by the way, that means that you should not feel that the centre has collapsed,
00:14:02.280which is a kind of common perspective I think you've just articulated. That's not what's going
00:14:06.480on. What's happening is that what it is to be in the centre has a different content now to what it
00:14:13.120did before. To be in the centre used to mean that you favoured a moderate degree of state
00:14:17.140intervention, but a broadly, with maybe quite a big welfare state, but a broadly marked
00:14:21.960economy. Tony Blair, basically. Without the wars. Without the wars, yes, on all that stuff.
00:14:27.760Let's draw a veil over that. But what being in the centre was going to mean in a couple
00:14:33.160of years' time is that you favour a certain amount of immigration control, but you're
00:14:37.560not a hardline nativist nationalist. You are broadly in favor of international cooperation,
00:14:43.360but you don't want the kind of complete merging of sovereignty that the EU means. That's what
00:14:47.700the new center is going to be, essentially. So you still have a center position, but the
00:14:53.120content of that position is determined by what the underlying alignment is. And as I
00:14:58.100say, this new party is basically the globalist internationalist party. The thing is, they
00:15:03.940yet they haven't quite got their heads around that.
00:15:05.720The other problem is that I'm afraid to say
00:15:08.920quite a lot of them typify another phenomenon
00:15:11.100of the last 20 years, which is the professional
00:17:49.780less than 30% felt a strong identification with their party.
00:17:55.900Over 75% felt a very powerful identification
00:18:00.520with their status as leave or remain voters.
00:18:04.260And I think you underestimate the degree to which
00:18:06.660there's a very powerful constituency of unreconciled remainers
00:18:11.480out there in the country, about 25%, roughly, I would say, of the voters.
00:18:17.040And that's basically the constituency that this new party that's emerging at the moment is going to appeal to.
00:18:22.200But do you not think that's kind of like polling boxers in the middle of a boxing match?
00:18:25.820Like, yeah, I hate them, but once the fight is over, they're all hugging and whatever.
00:18:28.840Like, once Brexit happens, people will be reconciled to the fact that it's happened.
00:18:33.760Well, some people will be, but I think that there are going to be, like I said, about 25% of the voters, 25% to 30% who are utterly unreconciled.
00:18:41.120and these are the people who have a genuine, strong ideological commitment, if you like, to the European project.
00:18:49.180There aren't enough of them to win the referendum,
00:18:51.180which is why there wasn't a positive pro-EU case made during the referendum.
00:18:55.540That's why instead we got this ridiculous kind of project fear nonsense from George Osborne and others
00:18:59.820about how the sky was going to fall in if we voted to leave.
00:19:03.540But that is a significant block of voters.
00:19:05.800And the other thing about them is they're geographically concentrated.
00:27:53.920The contrary view is that, no, you're living in a world of easy travel, of globally interconnected
00:28:01.140cities, a world economy which has long supply chains that go halfway around the world to
00:28:07.160produce everyday products, and in that world, you basically can choose to live where you
00:28:13.040want, be the kind of person you want, and you can also, to a great degree, construct
00:28:16.880a kind of whole set of overlapping identities for yourself by almost picking and choosing
00:28:21.300between different cultural traditions. Those are two radically different ways of understanding
00:28:25.200what social identity is, and I think that's what the big division is.
00:28:29.700And that also ties into Brexit, because Brexit is whether you see yourself as UK and whether
00:28:34.520you see yourself as European. The question I really wanted to ask is, is this the end
00:28:38.320of the Labour Party as we know it? I think in some senses, when Jeremy Corbyn won that
00:28:44.660election, as I said at a sort of immediate aftermath of that, the Labour Party had been
00:28:50.000transformed. It was a new party at that point. So what often happens actually in British politics
00:28:55.140is that you have a party with the same name, but it's completely different from what that party was
00:29:01.74010 years before. It's like the famous problem of Trigger's broom, you know, 10 new handles,
00:29:08.000four new heads, but still the same broom. So in the same way, if you think about historically,
00:29:13.140to give a historical example, the Conservative Party by the end of the 1920s was a completely
00:29:17.060different kind of party in terms of the people who were in it, the people who voted for it,
00:29:20.980to what it had been before the First World War. It had changed basically from being an
00:29:24.760aristocratic party to being a business party, if you want to put it that way. So I think
00:29:28.920what happened with the Labour Party is that it was a shell party. Under the Blair and
00:29:35.780Brown, the party's membership had shrunk dramatically. There was almost nothing left.
00:29:40.520And then all these thousands of Corbynistas joined the party with great enthusiasm and essentially it became a new party.
00:29:49.560Now the question is what kind of party is that?
00:29:51.840And I think the issue, which is what we were alluding to a moment ago, is is it going to continue being a traditional working class party
00:30:00.120Or will it become a party of the radical populist left, like, say, Podemos in Spain or maybe the Greens in Germany or Syriza in Greece, that kind of thing?
00:30:13.440I would have to say that that's an open question because the other factor in this is the trades unions, who are still, of course, enormously powerful institutions in the Labour Party.
00:30:22.120And obviously they represent the traditional working class aspect of it.
00:30:25.960However, the leadership of the trades unions has moved a long way away from those organizations' traditional working class roots.
00:30:33.060So at the moment, we will probably have a party called the Labour Party around, but I suspect it is going to be less and less of a working class party.
00:30:41.620Now, in that case, to go back to the point you raised earlier, what kind of political force is then going to be able to articulate working class interests and identity and concerns?
00:30:52.120And that could have a rather bad answer if we're not careful.
00:30:55.320So for Tommy Robinson, that's a very rich scene for him to plan.
00:31:04.400Fortunately, people like him are still largely not taken seriously or discredited
00:31:09.640because of their association with thuggery and violence,
00:31:12.160which, not surprisingly, puts a lot of people off.
00:31:15.060The danger is that somebody will arise who is charismatic, persuasive, articulates the views and interests of a lot of people very effectively, but who doesn't have the kind of baggage that people like Tommy Robinson or the football lads or whatever they call themselves have.
00:31:42.440No, but the issue with him is I've listened to his Oxford Union talk.
00:31:49.640He explains a lot of things quite articulately very well.
00:31:52.940But it's the association with violence and thuggery, as you say, that for us is a problem.
00:31:57.320A lot of people want us to interview him.
00:31:59.120And we're like, well, he does say some things that are interesting and that are valid.
00:32:04.240But that association is a problem for us.
00:32:06.700Right. But if someone was to come along and articulate the views and the needs and the interests of working class people up and down this country who was not violent, who wasn't coming from that background, what's wrong with that?
00:32:19.960Actually, I don't think there is anything wrong with that.
00:32:22.020I mean, I think what you said it was a danger.
00:32:23.720Well, OK. And let me rephrase or expand it slightly.
00:32:28.040I think it is very dangerous to have a significant block of voters whose views, concerns, interests are not being articulated.
00:33:13.200So there were two different routes that their representation took.
00:33:16.520One was for them to be represented by radical but democratic parties like the Labour Party,
00:33:23.560parties that were not prepared to subvert civil liberties, were committed to preserving
00:33:28.820the main institutions of the democratic political process and the like.
00:33:32.520The other route in, say, France, for example, was to go and vote for the Communist Party,
00:33:37.640a revolutionary party that, to put it mildly, was not interested in maintaining democratic norms or liberal rights.
00:33:45.560So when we are talking about an unrepresented working class or a working class that feels itself to be unrepresented,
00:33:52.440which amounts to the same thing, the question is then what kind of politics comes along to express it.
00:33:58.160If it's a kind of politics which does articulate their concerns and interests but combines that with a kind of radical revolutionary rhetoric or a commitment to violence and the destruction of their political opponents, that's extremely dangerous.
00:34:13.460On the other hand, if it is a kind of politics which says,
00:34:16.320look, here we have a set of views and concerns that are not being taken seriously,
00:34:19.640we think they should be taken seriously,
00:34:21.400but does so within what you might call the rules of the democratic system,
00:34:57.640The problem that I think Nigel Farage and the element of view
00:35:04.100that he represented had was that he was articulating those concerns
00:35:09.540But he also combined it with a kind of economic position, which personally I favor, but which was not going to, I think, appeal to the audience he was also speaking for.
00:35:20.000Because I think the crucial thing is that you've got, if you think of there being a four-way block, four quadrants, really,
00:35:27.940if the vertical axis up here is this whole question of identity that we're talking about, the other axis is how you feel about economics still.
00:35:37.800And so you've got on the one hand down here a block of voters, largely working class, not entirely, who are both left-wing on economics and nationalist or culturally traditionalist.
00:35:49.580Over here you have a block of voters who share the cultural traditionalism, but who are much more free market or less left of center in economics.
00:35:58.600Now up here on the other hand you've got on the one hand the kind of people that the independent group are appealing to, liberal cosmopolitan, broadly free market, very globalist.
00:36:07.080And up here, you've got the far left, you've got momentum and the Greens.
00:36:09.740Now, the problem is that I think Nigel Farage is down in this quadrant and his economic view,
00:36:14.820his views on things like national identity, opposition to the EU,
00:36:18.480they appeal to those working class voters over here, but his economic views did not.
00:36:22.540The big gap in the market, if you will, is for a party that is left of centre in economics,
00:36:29.700but traditionally nationalist, what I would call a national collectivist party.
00:36:34.700This is what the Front National in France is.
00:36:36.820That's what Marine Le Pen has turned it into.
00:36:39.040And I think that that's the kind of big gap in the market, if you will.
00:38:32.900You can only become an MP by going through a very strictly
00:38:38.060structured career route, which involves having no proper job,
00:38:42.840or what most people regard as a proper job,
00:38:46.220going to a very limited number of academic institutions
00:38:49.020junior academic career, and basically studying a pretty limited range of topics.
00:38:53.260The number of people who've done PPE at Oxford or in Parliament is remarkable.
00:38:58.040And the result is there for an extremely narrow basis.
00:39:00.620Now, having then got into Parliament, that process I described means they're then made to realise that maybe the world they've been working in for 9, 10 years or so is not the whole of the world.
00:39:12.460But the problem is that's what they are.
00:39:15.040And so I think, yes, that is a problem.
00:39:16.220And do you think, given that you've talked about the fact that we're going to get possibly a few hung parliaments and that lack of decisiveness that we crave from the first-parts-the-post system, do you think we need PR? Do you think we need proportional representation?
00:39:29.420I think I would support some kinds of PR, but not others, basically. I would be totally against any kind of proportional representation that relied on a list system, because that would give even more power to party bureaucracies.
00:39:44.000If anyone is not familiar with that, Steve, just break it down.
00:39:46.080OK. In many countries like the Netherlands, for example, or Israel, which is the most extreme case,
00:39:51.500you just vote for a party and the party has a list of candidates.
00:39:56.000And depending on, let's say, that the party wins 10% of the vote,
00:40:00.700you go down its list until you reach the number of people who make 10% of the legislature
00:42:26.920The other reason is I think that I strongly suspect that the EU
00:42:31.680will not be around in its current form in five years.
00:42:34.700It may well have collapsed altogether because it has fundamental design flaws, which are acts of hubris that the European politicians engaged in at the Maastricht conference.
00:42:45.600Obviously, the euro, which pretty much every economist on the planet told them was a total disaster.
00:42:51.040But also, I think the whole idea of an EU, common EU citizenship, I think that was an act of hubris because there is no European demos.
00:42:58.800people still think of themselves as French, German, Italian, Dutch, and Spanish, not European.
00:43:06.660So I think that if the hotels are burning, better to get out before the ceiling comes in, is my view.
00:43:11.860But you don't think crashing out without a deal.
00:51:57.420I mean, I think the typical thing that happens is that you get lots and lots of photographs of tired and maybe slightly intoxicated EU figures
00:52:07.780staggering out of luxury hotels at 3 or 4 in the morning.
00:52:10.920After some, they've pulled an all-nighter of, like, crash negotiations.
00:52:14.300I suspect something like that may happen.
00:52:16.280The only reason why it might well not happen
00:52:18.820is that the issue of the Irish border is particularly intractable and difficult.
00:52:23.780And it's not easy to see how it's even possible for a deal to be made
00:52:28.360that will actually command a majority in Parliament.
00:52:31.300Well, you know, it's interesting times when the only party not in crisis are the Lib Dems.
00:54:30.580That's the first time that's happened.
00:54:33.100So what I find interesting with Corbyn, though, is that this guy came to lead the Labour Party under this aura of being principled and honest and speaking truth to power and saying it like it is.
00:54:46.100And as you say, he probably voted leave and isn't admitting it.
00:54:51.480He's trying to get the Conservatives to put through Brexit, which is what he wants to happen, under the guise that he doesn't want it to happen.
00:54:59.080And it kind of puts into question his whole status as this honest, true-speaking guy, doesn't it?
00:55:04.580Well, the point is he's doing his job.
00:55:07.380I mean, his job is to hold the Labour Party's electoral coalition together
00:55:11.280and, if possible, to use that electoral coalition to gain power and have a Labour government.
00:55:16.020Now, everything he does makes sense in that light.
00:55:20.520If he comes out and says, well, actually, I think we should leave the EU
00:55:24.780because that would make a more radical economic policy possible,