The Collapse of the Centre: Is Brexit a Disaster or an Opportunity for Labour?


The British political class – a uniquely inbred Oxbridge clique – is in turmoil after the result of the Brexit vote, and is now engaging in a mutual backstabbing that makes Game of Thrones look tame by comparison. However, despite its disorientation, the entire establishment across party lines is clear on one thing, and only one thing: Jeremy Corbyn should not be leader of the Labour party. Its political reflex is to hold him responsible for this disruption of the status quo.

Apart from around 40 MPs, Labour’s parliamentarians are closely tied to former leader Blair’s embrace of neoliberalism that was at the root of the party’s abandonment of the working class in the former industrial and mining areas. There is now the possibility of a split between the parliamentary wing and Labour’s membership, which wants to restore its social democratic orientation. It has this in common with much of the public, even when distorted by a nationalist perspective – the Brexiters’ slogan of more money for the NHS (which they immediately reneged on) was one of the popular drivers of the vote.

Corbyn is a symbol of a social democratic alternative to neoliberal austerity, although his voice was drowned out by the shrill claims and counter-claims of the Cameron-Johnson campaigns. He is still capable of uniting Brexiters and Remainers who want to acknowledge the misery piled up in the abandoned areas of much of England and Wales that had been ignored by the political elite. The vote gave an opportunity to the people living in those areas who felt disenfranchised to show their hostility to the political apparatus; many assumed their vote would not count and that Remain would carry the day simply because it was supported by the establishment.

Gary Younge commented: “If remain had won, we would already have returned to pretending that everything was carrying on just fine. Those people who have been forgotten would have stayed forgotten; those communities that have been abandoned would have stayed invisible to all but those who live in them. To insist that they will now suffer most ignores the fact that unless something had changed, they were going to suffer anyway. … For the last 15 years, governments and the press have stoked fears about whether British culture could withstand the integration of Muslims – of whom 70% voted for remain – when they should have been worried about how to integrate the white working class into the British economy. Brexit didn’t create these problems. It exposed them and will certainly make them worse.”

The referendum itself was inherently divisive, as Patrick Cockburn points out. “This is always the way with referenda on important issues: they make irreversible decisions, but they do so at a high political cost by excluding compromise between contending parties with deeply held opinions that they are not going to abandon on the day after the poll, regardless of who wins or loses. … The Remain camp thought they could win the vote by relentlessly emphasising the economic risks of leaving the EU, though the real danger is political rather than economic as a populist right is empowered with little idea of what it should do with that power.”

The influx of immigrants from Eastern Europe escaping poverty in their own countries has been taken advantage of by unscrupulous labour agencies and landlords to force down wage rates and jack up rents in various parts of Britain. But this is not unique to the UK; it exacerbates a trend seen throughout Europe. Servaas Storm, an economics professor at Delft University, comments: “Almost everywhere in the E.U. — as in Britain — there is a polarization of the income distribution into a large number of low-income households and a much smaller number of very rich, while the middle classes have shrunk. There is a segmentation of employment into low-wage, unprotected and precarious jobs, mostly in low-tech services, and high-wage and protected jobs in high-tech manufacturing, finance, legal services and government. … The massive social protests in France against the modernization of labour laws — newspeak for a reduction in the strength of French job-protection laws and social security in general — by the ‘socialist’ Hollande government illustrate the point: The systemic dismantling of worker protection in the name of cutting wage costs and improving unit-labour cost competitiveness will certainly increase job insecurity, employment precariousness, and inequality without any further macroeconomic benefits.”

UMass professor Richard Wolff explains: “A government, voted in by the French working class, a socialist government … pushed through a labor reform law which basically does everything that the employers in France could have dreamed for a president to do. … the newspapers are filled with spectacles of helmeted police being sent by a socialist government to beat the very people that put that government into office. And if anything were more clearly a sign of the collapse of what the very word socialism meant, as well as the collapse of conventional politics, it’s being acted out on the streets of Paris. … You’re seeing everywhere that the traditional, old, capitalist-maintaining center-left, center-right, is dissolving. And the polarization is the new issue on the horizon. It is surprising the old elites, but that’s really only a sign of how out of touch those governing elites have become …”

The parliamentary Labour party’s attempted coup to unseat Corbyn is another sign of how out of touch it is with the membership. Constituency activists have renewed demands for MP reselection in the event of another general election. Labour party member Dan Iles pointed out: “I believe Corbyn persuaded 60% of Labour’s supporters to vote remain because he didn’t ignore people’s concerns with the EU. By admitting that the EU is not without its faults and then demanding that we should stay in to reform it (from the left) he was able to bypass the binary claims of the two main referendum campaigns. People voted leave because they felt abandoned by politics and scared about immigration. These structural issues haven’t just appeared in the last nine months of Corbyn’s leadership. But I think many felt his defence of immigration and his determination to turn the debate towards austerity was refreshing at a time when the leave campaign was openly whipping up racism and xenophobia.”

UPDATE: David Graeber makes a relevant comment in the Guardian: “If the opposition to Jeremy Corbyn for the past nine months has been so fierce, and so bitter, it is because his existence as head of a major political party is an assault on the very notion that politics should be primarily about the personal qualities of politicians. … the Corbyn project is first and foremost to make the party a voice for social movements once again, dedicated to popular democracy (as trades unions themselves once were). … While one side effectively accuses him of refusing to play the demagogue during the Brexit debate, for the other, his insistence on treating the public as responsible adults was the quintessence of the ‘new kind of politics’ they wished to see.”

The Brexit campaign was always a dispute between factions of the Tory elite, neither of which were serious about the possibility of a Leave victory, meaning that there is no plan for disengaging from Europe. With all the criticism of Farage’s open racism, it has been forgotten that Cameron and Theresa May stoked nativism by imposing English language and income tests on new immigrants, a policy targeted at Middle Eastern refugees. Britain has never had a positive approach to cultural assimilation like the US does. It puts responsibility onto immigrants to somehow integrate themselves into the system.

While the media is fixated on British parliamentary politics, the vote is having major international repercussions, not least within Europe itself, because of the fragility and interconnectedness of the global economy. The Economist notes that the London financial industry could be in big trouble: “It thrives on the EU’s ‘passport’ rules, under which banks, asset managers and other financial firms in one member state may serve customers in the other 27 without setting up local operations. … In the run-up to the vote TheCityUK, a trade body that opposed Brexit, boasted that London had around 70% of the market for euro-denominated interest-rate derivatives, 90% of European prime brokerage (assisting hedge funds with trading) and more besides.”

Will the inevitable diminution of the City of London’s financial clout also lead to a weakening of its political influence? This is Labour’s opportunity: the first task of a Labour government independent of EU regulations should be to take control of capital movements and pump money into kick-starting manufacturing in regionally depressed economies. Corbyn supporters have plenty of policies they could be campaigning on to unite workers whose jobs have been outsourced with immigrants who would fight for a living wage.

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1 Comment

Filed under Brexit, Britain, Cameron, Jeremy Corbyn, Neoliberalism, populism, Uncategorized

One response to “The Collapse of the Centre: Is Brexit a Disaster or an Opportunity for Labour?

  1. ianmacbeveridge

    I totally agree on the responsibility of Cameron and May in legitimising the anti immigrant sentiment from 2010/11. They implied benefit scrounging by immigrants, aided by the Daily Mail and right wing press, encouraging xenophobic (racist) feelings in many of general public to justify their government’s cutbacks of the welfare state. All this limited Cameron’s ability to respond to the Brexiters’ final trump card argument on immigration. Corbin was the only politician to make a positive case in favour of the contribution of immigration. The establishment Tories had dug their own grave, unable also to admit their austerity programme, in cutting social serves and local authority spending by up to 50%, was to blame for increasing levels of poverty, when the economy was doing well. Only Corbyn made this argument laying the suffering of the working poor at the door of government policy. A final point on the disconnect of politicians and the voting public is that had Cameron influenced his own supporters to have backed him by the 60% who backed Corbyn, we should not be in this mess.

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