Daily Archives: August 14, 2011


The Roots of Conflict

There is an excellent article by Simon Hughes on response to the looting. He has in many ways the same position as me in seeking radical solutions to the malaise of our hugely unequal society, while in no way sympathising with criminal looters.

The direction of all of Hughes’ proposals is correct, but his proposed action does not go far enough and is not specific enough. In both public and private organisations, the earnings differential between the highest and lowest paid should be limited by law to a factor of four, including the effect of all non-salary perks and benefits. Hughes does not give specifics on his desire to limit this gap, but Will Hutton has been promoting a factor of ten in the public sector – that is far too wide an equality gap.

Similarly Hughes’ pious wish to promote worker partnership and cooperatives needs to be given concrete form by legislation forcing all companies to give truly significant – I am thinking around forty per cent – shareholdings to employees.

If Simon really wants to roll back the excesses of the last thirty years, then natural monopolies like the utilities companies and the railways need to be returned fully to public ownership. PFI should be discontinued and all PFI assets nationalised without compensation.

Housing Association properties should be taken over by local authorities as traditional council housing, and massive new public funded mixed home building programmes should be begun that include the demolition of the ghastly huge sink estates of sub-standard housing. That would help boost the economy out of recession.

Hughes’ diagnosis is correct. But the reversal of the incredible and dangerous expansion of the gulf between rich and poor requires truly radical use of the power of the state with measures along the lines of those above. Anything else is just tinkering.

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