Public Policy Futures: A Left Trilemma?

Abstract

Why is it so hard for the Left to produce a coherent and progressive response to the crisis, when markets and private enterprise have so obviously failed? One answer is that the Left faces a trilemma in public policy: it must respond adequately to the economic crisis to be seen as competent; it must address the established themes in public opinion to be electable; and it must develop generous and inclusive policies to be progressive. This chapter identifies conflicts in all three areas where low public sector productivity growth and demographic shifts tighten already harsh spending constraints. Entrenched public suspicions of higher taxes for any but the distant rich and a public discourse which makes rigid distinctions between those deserving and undeserving of state welfare conflict with egalitarian or redistributive policies. Most Left strategies include higher public spending and more equal social provisions, but public opinion rejects both tax rises and greater generosity to the poor of working age. The Coalition strategy, by contrast, rests on private enterprise-led recovery, work ethic values and policies that exclude less deserving groups. It does not face the same problems. This chapter analyses a range of policy programmes suggested by commentators on the Left in the light of these points. It concludes that a progressive strategy must draw on multiple themes, and must seek to shift public discourse in a more supportive direction.