00:04:02.760The international financial framework, Bretton Woods, collapses under Richard Nixon.
00:04:08.040So the West is in this mess in the 1970s because of that.
00:04:11.240But Thatcher and Reagan spun a story, this is because of the state, it's because of the unions, but what you get in the 80s is the same amount of growth in Aboriginal Britain, in the 90s, the growth is less, in the noughties, it's lower, in the tens, it's about the same, and in the 20s, again, it's very weak growth.
00:04:32.860So what you've had since that tourism is 80s, the same growth as the 70s, less equity distributed every decade after that, it's lower growth than the 1970s.
00:04:43.880You get the privatisation of utilities, shit in our water, railways, which are obviously a ripoff, inefficient mess, which are subsidised by the public, even though they're privatised.
00:04:56.340You get a housing crisis. Four in ten of the homes flogged off by right to buy are now rented out by private landlords charging twice the rent.0.97
00:05:06.340You get, because of the smashing of the unions, you get stagnating wages.
00:05:12.340Even before the crash, they were stagnating for millions of workers.
00:05:15.340But the average British worker now, their wages are pretty similar to what they were in 2008.
00:05:20.340You've got the financial crisis, which was all about, that was what financialization led to.
00:05:26.140So we've ended up with an economic model, which is, again, it's all about assets rather than productive industry.
00:05:33.540It's about complex financial products rather than making things.
00:05:37.860And which is why even the likes of Donald Trump talk about that legacy.
00:05:42.580They don't talk about the reasons why.
00:05:43.800But we've ended up with an economic model, which works very well for a certain elite.
00:05:49.460But actually for millions of workers in America, again, wages in America have been stagnant for decades. And for British workers and for workers across the Western world, this is an economic model which has led to insecurity, stagnation, a public realm which is underfunded and crumbling.
00:06:08.360So I think neoliberalism, it's obviously failed.
00:06:11.340I don't even see what the defence is, because by definition,
00:06:34.160That's economic stagnation and decline.
00:06:36.260social progress has come to an end technology improves you get more advanced phones we've got
00:06:41.300ai but in terms of how people's people's lived experience it's it's insecurity and stagnation
00:06:48.500except for the people at the top i don't know what's the difference i don't know what the
00:06:51.060defense of the economic model is i don't see just any the stats speak for themselves i think
00:06:54.900well and this is the central uh thesis of your book that neoliberalism at home as you call it
00:07:00.260all of the things that you described plus adventurism or militarism or imperialism
00:07:05.060and whatever you might want to call it, abroad, these two things combined are the reason where
00:07:10.740the West is. And you do a fairly good summation, actually. I'd say 90%. There's 10% where we can
00:07:18.760talk about later, perhaps. But 90%, you do a very good summation of the kind of mainstream
00:07:23.540alternative arguments for the position the West finds itself in today. And the kind of central
00:07:31.240right-wing arguments you you you explain what they are uh faithfully actually which is to your
00:07:36.560credit um and then you explain what you've just explained uh and so the central thesis is
00:07:42.580neoliberalism at home uh the way you've described it combined with militarism abroad let's say
00:07:48.280is that a fair summation exactly so they collide together so you get this economic model which
00:07:53.700just factually speaking doesn't deliver the growth it did and it's less equity distributed
00:07:58.040And it's going to all these financial products and the financial sector rather than making things.
00:08:03.040At the same time, we've had military adventurism.
00:08:07.040I mean, how many wars is the West supposed to suffer a strategic defeat in before Western elites face a reckoning?
00:08:16.040There was the war in Afghanistan, which was a two decade long occupation, following, as I detail in the book, the West arming and supporting...
00:08:24.040Do you mind if we just stick with the neoliberalism part?
00:09:49.800Yeah, exactly. But with the economic model, people feel they're competing for scarce resources.
00:09:56.420I understand. Because there's no growth. I get it.
00:09:58.380And then when the far right, as I would describe it, say it's because of migrants that you're struggling,
00:10:04.320people feel if there's no alternative, then they feel they're competing.1.00
00:10:06.960I totally get it. I promise you we will get to all this.
00:10:09.040The only reason I was interjecting is I want to talk about the neoliberalism part first.
00:10:13.360We will definitely talk about mass immigration and all of that in a second.
00:10:16.460So the central thesis, the one thing that I missed out in my summation of your central thesis is that you say the reason that people thought neoliberalism was a great economic vision and economic set of policies was that it was dominant and supreme at the time the Cold War ended.
00:10:35.140And so you've basically got a victory. I'm using your inverted commas, let's say, for the purposes of this.
00:10:43.100The West wins the Cold War with neoliberalism, therefore neoliberalism good. Fair summation?
00:10:49.640Yes. So if you've got the Cold War ending during the 60s, for example, then social democracy is dominant at the time.
00:10:56.700So that form of capitalism would be the one that would be seen as triumphant.
00:10:59.420And in the introduction, I just want to bring this quote up because it's kind of, it sums up your point of view, and this is what I wanted to talk about.
00:11:05.420So you say, the Soviet Union's demise came at the very high point of what is variously known as Thatcherism, Reaganism, or neoliberalism, the selling off of state assets, slashing taxes on big business, the wealthy, and the wealthy deregulation, subordinating the real economy to financial institutions, and hobbling organized labor.
00:11:22.540all the stuff we talked about, and you say such policies helped plunge Britain and the US into
00:11:27.020dire recession in the 1980s, but later in the 1990s, the economies were booming.
00:11:34.060So in the late 1980s, in the early 1990s, you get another recession, because you get now,
00:11:39.060because of this, you get these endemic, big recessions, which caused massive de-industrialization.
00:11:43.200But the first recessions that these policies caused were in the early 80s.
00:11:46.440Early 80s, so exactly. So I went back to Sheffield, where I was born, and that's a city that was
00:11:50.840devastated you get industries that just disappear immediately so entire communities have their hearts
00:11:55.820ripped out these are places where people have you know they're they're often male dominated their
00:12:00.680father their grandfather the great grandfathers worked there entire communities based around them
00:12:05.200they just disappear overnight and you get this i mean those many of those communities never
00:12:10.840recovered you get you know it's and and this was done deliberately because what what thatcherism
00:12:17.320did is hike up interest rates to a very high level um but also uh use fritted away north sea oil
00:12:25.980in in our case rather than norway which invested in a in a sovereign wealth fund
00:12:30.040um and what it did is it made our exports very very uncompetitive artificially which then just
00:12:36.120wiped out industries which could no longer compete okay so the reason i bring this up is this is the
00:12:41.280first point in the book where i was like maybe i'm misunderstanding this so i went i we used
00:12:46.040venicei to fact check stuff so i went and looked at it and this way it didn't make sense to me
00:12:50.020because the privatizations that you talk about the bt and other british companies they were
00:12:55.620sold in 1984 yeah the recession was in 1980 uh the deregulation of the city when you talk about
00:13:02.040financialization the big bang deregulation that was 1986 yeah but hold on so the tax cuts they
00:13:08.600i don't so i don't understand the criticism sorry you need to i'm gonna spell it out yeah okay you
00:15:24.920Owen, I'm not trying to catch you in a quote that you've kind of got wrong or whatever.
00:15:29.740The reason I'm picking this bit out specifically is it challenges the entire thread of your argument.
00:15:35.740Hold on, let me explain my argument before you challenge it.
00:15:38.720I really welcome you pushing back on this.
00:15:40.840I'm just trying to stress, as we do with everybody, trying to stress test your argument.
00:15:44.940So your central thesis, as we established, is Thatcher and Reagan come in, they do privatisation, they break up trade unions, they do all the stuff that you mentioned, and that causes the economic stagnation and problems that we have.
00:16:26.680but the recession happened three years before that.
00:16:28.520So is it possible that your argument sort of breaks down on that basis because what the counter argument to your argument is, you have these two oil shocks, 73 and 79.
00:16:40.800And the reason that Thatcher, and this is kind of the established narrative, let me lay it out, you can then argue with it, is that the reason that we had a recession in 1980 was not because of neoliberalism, but because a decision was made, we either choose inflation or unemployment.
00:16:55.580Hold on. Let me just finish the argument and then you can answer it.
00:16:59.460And we either choose inflation or we choose unemployment.
00:17:03.160And the decision was made to hike interest rates to prevent inflation from spiralling.
00:17:07.180So what happens, privatisation is a process which begins in the first term.
00:17:11.060Because what they do with these state-owned firms is they prepare them for privatisation.
00:17:16.120So what they do is they remove the state subsidies from those state-owned industries.
00:17:20.200And the removal of that, which is part of preparing for the privatisation, which they did, of mining, for example.
00:17:27.340So mining is a really striking example.
00:17:30.100You get the beginning of the privatisation, which takes place in the first term of Thatcher's government.
00:17:35.460What that means is market discipline is imposed on British coal.
00:17:40.600Now, is British coal privatised in the first term of the Thatcher government? No.
00:17:47.180But is the state subsidies removed from these state-owned industries in preparation for privatisation?
00:17:53.740Yes. Does that then cause, in part, because what happened in the early 80s,
00:17:58.060and this is part of the deregulation I talk about, is state subsidies are removed from various industries
00:18:04.300on the basis of the state, this was their argument at the time, was picking winners and losers.
00:18:10.520So their view, the argument of thatcherism was, we are going to remove this state intervention,
00:18:16.140There's state support in preparation for privatisation.
00:18:19.340We're going to impose market discipline.
00:18:21.780And that happened at the very moment they'd hiked interest rates
00:18:24.860and allowed the outflow and inflow of capital without state intervention.
00:21:58.440It's the air traffic controllers, 1981, immediately.
00:22:02.220But that doesn't cause a recession, right?
00:22:04.140No, what it does, what that did is unleash a massive spate of union busting all across the United States of America.
00:22:12.060And what that did is remove the organising, the power of organised labour to sustain the living standards of workers.
00:22:21.080But that doesn't cause a recession, right?
00:22:22.840That sucks demand out of the economy. Of course, that's what happens.
00:22:26.260But at the same time, I mean, under Thatcher, under Reaganism, again, you get the withdrawal of, they didn't have the same levels of state interventionism that the social democratic consensus existed in America.
00:22:39.560And yet they also had a recession. Wouldn't that be more likely because by the old fight?
00:22:42.600No, because what they did is they started, they immediately introduced cuts to public expenses.
00:22:46.680I mean, this is, sorry, the other point, which was completely missing here, is the cuts, because this is what I was talking about, is the withdrawal of the states.
00:22:53.380That's what we're talking about. So what Thatcher does in the early 80s, as soon as he comes to power, is impose sweeping cuts, not just on the subsidies I'm talking about, but on state, from state investment.
00:23:05.900Ronald Reagan does the exact same thing. That sucks demand out the economy. And that's that rolling back of the states, which is what they all did.
00:23:13.120And they did it on the basis of the let the market let rip and that will raise prosperity.
00:23:17.520But the cutting of state expenditure under Reagan and Thatcher during a recession, unlike the Keynesian argument is you invest at this time because then that will, you know, it's counter cyclical and so on.
00:23:30.720What they both did is they were ideologically committed to rolling back the state.
00:23:34.380And that is what made those recessions in America and Britain so profound.
00:23:41.100And they did it at the time where they disciplined organized labor, which is what obviously Reagan did, reducing the bargaining power of unions in order to raise the wages of the workers.
00:23:51.940So, of course, yes. I mean, everyone knows Reaganism and Thatcherism at the beginning rolled back the states.
00:24:29.340No, but that's not fair or reasonable.
00:24:32.180Actually, I'm kind of surprised at the argument, given the way Trumpism has particularly postured in defence of the Rust Belt communities, for example.
00:24:40.400Because in all of these cases, you get a rapid fall, particularly in Britain.
00:24:45.300And Britain is the worst case where you get deindustrialisation in a really rapid scale.
00:24:51.860And those communities then never actually recover.
00:25:20.760you obviously don't get the Big Bang for several years in Britain
00:25:26.980but that is such a misnomer in terms of how people think of financialisation
00:25:30.600financialisation actually started in the early 70s under the Ted Heath government
00:25:34.620when they basically liberalised cheap credit
00:25:36.740but in the early 80s after the abolition of exchange controls
00:25:43.200that obviously has a huge impact in the financialisation of the British economy
00:25:47.320So you get a boom, which becomes about inflating asset prices and big finance.
00:25:56.980And obviously, some people do very well out of that.
00:25:58.800And some people did very well, not least in the southeast.
00:26:02.160But at the same time, industry was falling apart in the north.
00:26:06.540You get then an economic recovery, which is extremely weighted.
00:26:11.660And it's weighted in favor of people who are affluent.
00:26:14.320And you do get, for example, people, I mean, you know, short-term sugar rushes, people, for example, right to buy.
00:26:19.920Did some people, working class people, benefit from that? Yes.0.83
00:26:22.960The question is what happens to their children and their grandchildren when four in ten of the properties rented out to right to buy are now rented out by private landlords charging twice the rent.
00:26:31.920So the issue is you get, you know, when you get growth and no one questions you, you've got growth in, for example, you've got a boom.
00:26:39.240You get an actual boom in the late 80s in particular.
00:26:42.580That boom actually helps build the economic model,
00:26:46.980which I would argue is one that delivers overall less improvements
00:26:56.640which cements the financial sector as the epicentre of the British economy.
00:27:02.580And then in the 90s and the noughties,
00:27:05.540wages in America and Britain stagnate.
00:27:07.300And the only way that's compensated for, where people don't feel they're actually getting poorer, is because of cheap credit. But what happens then with the financial crash? So yes, I mean, you could say, did Reaganism and Thatcherism, by rolling back the state and withdrawing the state from the economy, which is what happened immediately, which was my point, did that cause a recession?
00:27:28.480Yes. Did their policies also cause a sugar rush, which causes a big boom in the late 80s, which benefits some sections of society at the expense of others?
00:27:39.480Yes. Does that build an economic model?
00:27:42.940Is that an economic model then, which overall produces less rises in living?
00:27:47.460I understand what you're saying, but that's true of any policy, policy of subsidizing industry to the tune that Britain was subsidizing industry.
00:27:54.660It also benefits some section of society at the expense of others.
00:27:58.980So all policies create these trade-offs, right?
00:30:38.940And they didn't have the, you know, we pursued economic policies which led to decline, an economic model which doesn't deliver rising living standards, improve public services and improve security.
00:31:55.620I went and, you know, and, you know, there was certainly the big issue that came up in 2012 when I went there was the question of violent crime.
00:32:05.280I would argue that that wasn't specific to Chavez.
00:32:08.540I mean, Venezuela in the 1980s also had very high levels of violent crime.
00:32:13.800And equally, I would know in the 1980s, under what I would term
00:32:17.720neoliberal administration in Venezuela, you had as well,
00:34:47.040when I asked them specifically as a dictator,
00:34:48.480They said, no, but it's our job to stop him creating a dictatorship.
00:34:52.220And they spoke to what they regarded as his demagogic tendencies.
00:34:55.160And all the way through that period, the Venezuelan media was not just bitterly, overwhelmingly opposed to Chavez, but kind of beyond parody opposed.
00:35:14.100Yeah, well, I'm not a coup guy. And obviously, you know, he should. But this was an attempt to overthrow a democratically elected government, which no one questioned Chavez won those elections in the noughties. No one claims that he didn't win those elections.
00:35:31.680There was a coup which overthrew him, and a lot of governments after a coup against them would actually probably end up doing a far more authoritarian crackdown than that government ended up doing, actually.
00:35:44.480I mean, you know, my parents took in, as I read in the book, Chilean refugees who fled Augusto Pinochet's regime, who was obviously put in power partly by the West to overthrow a democratically socialist government.
00:35:57.620And I would know in Venezuela, in the 80s, you had a Western-backed government, which massacred, in the late 80s, hundreds, if not more people.
00:36:27.320If it happened in the United States, and look, there are many people on the American right who said what the press have done against President Donald Trump is disgraceful, disgusting.
00:36:38.900If Trump had done that, I would have, and the crackdown, shutting down 32 media outlets.
00:36:44.700Well, I don't support shutting down any media outlets, but OK, let's just do a hypothetical here, shall we?
00:50:30.660Just because a model which you can see is working in terms of reducing poverty for, you know, at the time, 15 years, that's how long it reduced poverty for, that you should you should look under the bonnet.
00:50:41.900How is it? How is it working? And I think, you know, just using using this case, fossil fuels in order to, you know, to bet the house on that to invest in your social programs is not a good idea.
00:50:56.140and that's what Ecuador and Bolivia didn't do
00:51:18.840Well, they would have had to do something else,
00:51:21.300which is what Ecuador and Bolivia did.
00:51:22.420So you wouldn't have had what you've had?
00:51:24.540Well, you can, again, you can just compare the neighbouring countries, but that's why I don't, I don't support, obviously, the Soviet system. I don't support that at all.0.62
00:51:32.980No one's accusing you of that. I would have been locked up in the Soviet system.
00:51:36.060Well, no, because you started talking about that then, you brought that in, while I was talking about Venezuela, and I don't think they're comparable because one is an overwhelmingly privately run economy, in which state intervention is actually less than it is.
00:51:46.660Do you accept that there's a spectrum of political systems? Like, at one end you have fascism, at the other end you have communism, let's say?
00:51:53.640I mean, I personally think it's a bit of a circle, but it doesn't really matter, right?
00:51:56.900So would Venezuela be towards the communist side or towards the fascist side?
00:52:23.280on authoritarian government so if they had if they hadn't i don't know what farmland or how
00:52:27.700much of that farmland we're talking about the rhetoric of ugo chavez about the rhetoric i think
00:52:31.720there's rhetoric and substance um but i don't you're making the pro donald trump argument there
00:52:35.940well that's well there is true because trump trump 1.0 and trump 2.0 are very different
00:52:42.180uh politically but trump rhetoric and trump practice is also i just i i no i don't i mean
00:52:48.800The big problem, I would argue, with Venezuela, actually, is one of the big problems is they did reduce poverty, but they didn't actually redistribute wealth, particularly.
00:52:58.000There wasn't some redistribution of wealth. They didn't hike taxes.
00:53:08.040Lots of poorer countries have endemic corruption in them.
00:53:10.960And I don't think, you know, I mean, we could look across various poorer countries.
00:53:15.560Poorer countries and corruption, that often goes together.
00:53:17.920And it particular happens when you have, you know, a big, for example, rich resource that's susceptible to corruption.
00:53:26.240But Venezuela, you know, I think looking back, you know, I think just saying, well, they're reducing poverty to a large degree, which they did.
00:53:33.560Therefore, that this is a successful model.
00:53:35.620First, you can't export it because it's oil dependent.
00:53:38.280And secondly, they didn't actually change Venezuelan society.
00:54:37.140In those countries, what they did is they expropriated the rich, the bourgeoisie, if you like, the capitalist class, and the major landlords.
00:54:46.540They confiscated. They did. I mean, you've got expropriation on a large scale.
00:54:51.800Those people then didn't become the top of the Communist Party. These are different people altogether.
00:54:55.540In Venezuela, he came to power. He didn't challenge the existing oligarchs.
00:55:01.820What he did is use oil revenues to put into social programs
00:59:09.820Because migrants expand the cake beyond their own needs.
00:59:17.020So what you mean, you end up, because of migration, people who are less dependent on public services, they're less likely to use their health services, for example, and what they do is they create economic output.
00:59:31.500They bring tax revenues, but they also increase economic activity.
00:59:36.840So what they do is they expand the economy in a way that means other people become better off as a consequence, because there's more taxes going into going.
00:59:48.080They are spending more on the in terms of the exchequer than they are receiving from the state.
00:59:53.020In order for that to be true, they would have to earn more than the average British person in income and pay more tax than the average person.
01:00:01.760Well, I mean, study after study shows it's just I mean, this is just basic logic.
01:10:56.660Cool. And I said there are studies that show this,
01:10:59.300and we argued, you tried to bring up British-Pakistanis,
01:11:01.940and I made the point, well, I'm talking about immigrants
01:11:03.720because British-Pakistanis are British, blah, blah, blah.0.98
01:11:05.800So, here are the studies from Europe that I'm talking about.1.00
01:11:09.240Finland, there was a study in 2017-2018 that found that foreign-born offenders represented 27.2% of suspects versus 7% of the population.0.63
01:11:21.780So, they're several times more likely than native Finns to commit that offense.
01:11:26.880In particular, Iraqi men are 12.8 times more likely to be suspected of a sexual offense.
01:11:32.020and for specifically I think it's 1.31 per thousand people
01:14:16.940Well, with all due respect, it is, because, again, I don't know why we keep dismissing, not least because it keeps coming up in this whole discussion, which is the main discussion we've had in this country about this whole issue, which is about the issue of grooming gangs, is that...
01:15:44.560And we have large migrant flows from Pakistan to Britain that you don't have, despite what we said about within Pakistan in terms of problems that women face, that women don't face problems in this country, you don't see that.
01:15:58.060And that is to do, obviously, with the fact that you obviously can bring people in from different parts of the world and people can assimilate.0.98
01:16:05.680The point you make about Afghanistan, I just really have to just make this point because I think it is absolutely key, is this country helped destroy Afghanistan.0.96
01:16:13.220We funded the jihadis, the mujahideen, in the 1980s.0.99
01:16:17.220I don't know if you support that or not.
01:16:19.220Do you support the West's support of jihadis in the 1980s in Afghanistan?
01:16:23.220I was about... When did the war start?
01:16:26.220No, come on. I oppose it. Look, I'm a geriatric millennial.
01:22:26.360I have friends from all over the world who've come here by applying for asylum.0.73
01:22:29.440If you don't do that and you come here on a small boat or you come here on a lorry by breaking the laws of this country, it's clear to me that you should be subjected to a far higher standard of scrutiny because you are, in my opinion, far more likely to be doing so in order to get around the immigration system, which would never have let you in in the first place.0.56
01:22:47.540Before we just talk about applying for asylum, look, am I allowed to ask or is it just going to be just, OK.0.68
01:22:51.420So is your argument, first of all, there, that your argument isn't even a blanket rejection of people who arrive on boats?
01:32:51.880And actually, you know, the issue is that the vast majority of refugees fleeing our wars end up in other countries which didn't cause the wars.
01:42:51.160You're misrepresenting the argument. I'm saying you do it overnight. I said phased-in policy.
01:42:55.020So how long? How long a period? Because you're betting the House on all these sectors being able to get care workers, retail workers, hospitality workers to fill in what you're saying will be, I mean, we're talking potentially millions of people.
01:43:10.420Migrant workers, I don't know how many in-work benefits.
01:43:13.460Do you notice that? I think the real disagreement here is I don't think you understand how the market works, which is maybe why the basis of your entire worldview.
01:43:47.960you make it a more appealing job for people to do.
01:43:50.140So is your genuine argument, because at the moment the care service, you'd accept as understaffed, we don't have enough care workers, even though we have, obviously.0.95
01:43:56.220So your argument is that what will happen is when these foreign care workers at the moment, literally, including, I'm sure, people watching,0.98
01:44:05.100looking after their elderly parents and grandparents and doing an incredibly difficult, arduous job for very little wages,
01:44:13.380they will now be made literally unwelcome in the country because they won't be able to live.
01:44:18.260They will be in welcome because you can't afford, if you take away from, if you take away people on that low pay, if you take away in work benefits, not least when they have families, they won't be able to afford to live here.
01:44:28.320Then you're arguing that there will be a massive hike in wages and there will be this army of British born people who will start doing care work, retail and hospitality, including in companies with very little profit margins, if we're going to be brutally honest about it.
01:44:42.160Is that honestly your view? That's going to happen. And these sectors aren't just going to collapse.
01:44:46.600Well, if you do it overnight, they'll collapse.
01:44:48.980But if you do it over time, of course that will happen.
01:44:51.300This is, I think, it's funny talking about economic insanity and problematic.
01:44:55.060It's one of the most insane economic ideas I've ever heard.