Press release – Publication of The Return of the State

“The British economy is no longer working for most people. This book brings together the best progressive thinkers, not tell to tell us what is wrong, but to explore the foundations of a new economy that works better for as many of us as possible. It’s essential reading for everyone that wants equity, democracy and dynamism baked into a very different 21st century economy.” Neal Lawson, Executive Director of Compass.

40 years of neoliberalism have failed to provide prosperity or stability to the UK economy. Instead it has led to low growth, turbulence, grotesque inequality , poverty and ill health for millions . This is the outcome of damaging economic polices driven by free market dogma, rentier capitalism and ideology. It’s time for a change.

This book contains 20 essays by PEF council members and academics who outline the essential features of a progressive economy dealing with the five massive challenges of our times on the economy – Covid-19 , austerity, Brexit , inequality and climate change .

PEF calls for bold public intervention. Shrinking the state and weakening our public institutions has undermined social and community resilience and promoted an out-of-control, value-sapping and high-inequality model of capitalism. 

The authors say the resources of the state must build a fairer and more dynamic post-Covid society, using a mix of regional and industrial policy and investment to revolutionise our public health, housing and social services. A progressive new society should construct a new income floor and new measures to spread wealth and give everyone an equal stake in the economy.

The financial crash of 2008 proved that only the state can rescue the economy when all else fails including the biggest banks. Covid has shown how only the state can rescue us from death and the collapse of the economy during a devastating pandemic. Only the state can steer the economy and deliver the investment needed to cope with climate change.

The 2008 crash showed the breath taking incompetence of the private financial sector. Now Covid has once again laid bare the myth than private is best – outsourcing to companies the job of track and trace at a cost of £37bn has so far failed to show any discernible benefit.

By contrast the selfless work of millions of NHS workers and volunteers has delivered one of the most outstanding vaccination programmes which has been the envy of the world. This has been done at modest cost and was only possible with a national health service drawing on the vocational drive of its workers for the common good.

The authors apply the lessons of the 1950s when state directed, Keynesian policy targeted full employment and led to a 25 year period of prosperity and stability.

Joe Biden is today showing the mighty power of the US State with his Covid and infrastructure bills. The results are expected to cut child poverty in half. The UK government should follow this lead and bring in new models of public intervention to deliver a pandemic-resistant, green economy which works for all citizens.

To order a copy go to https://www.agendapub.com/books/148/the-return-of-the-state. Enter AGENDA25 to obtain a 25% discount on the cover price.

Join PEF’s launch event on Zoom on 19th May 2021 at 11am , chaired by Miatta Fahnbullleh, CEO of NEF , with Ed Miliband , Shadow Business Secretary and Martin Sandbu of the FT . Many of the authors will be available for discussion and questions.

To register and attend, use the Eventbrite registration here

For more information contact
Patrick Allen on 07867 391 430/ 0207 874 8468
pallen@hja.net

What they say about the book:

Brett Christophers

“Coming on top of four decades of neoliberalism and one of austerity, the double whammy of Brexit and Covid-19 has left the British economy – not to mention most of those labouring in it – in a parlous state. How to renew that economy so that it works for all? This vibrant collection, ranging across the interlocking terrains of ideas and policy and animated throughout by the spirit of Keynes, is an excellent place to start.” Brett Christophers, Professor, Uppsala University, Sweden, (author of Rentier Capitalism)

Frances O’Grady, General Secretary, TUC

“For forty years the global race to the bottom has been a political choice. I commend the authors of this important book for setting out an alternative politics of fuller, better and greener employment.”

Polly Toynbee

“After decades of assault by state-shrinking ideologues, a collision of crises has revealed how only the power of good government can save us. Covid, climate catastrophe and Brexit crashed in on a public realm stripped bare by a decade of extreme austerity. Here all the best writers and thinkers on the good society show recovery is possible, with a radical rethink of all the old errors. Read this, and feel hope that things can change.”

Table of contents

1. Introduction – Patrick Allen

PART I FOUNDATIONS

2. Rentier capitalism: the role of finance in the macroeconomy – Robert Skidelsky
3. Post-pandemic health and well-being: putting equality at the heart of recovery – Kate Pickett and Richard Wilkinson
4. A second internationalism of labour – Geoff Tily

PART II THE PUBLIC SERVICE SECTORS

5. Affordable housing and a stronger economy – Josh Ryan-Collins
6. Post-Covid national health and care policies to ensure universal services – Allyson M. Pollock and Louisa Harding-Edgar
7. Reforming social care through a care-led recovery – Susan Himmelweit
8. The post-pandemic provision of education in the United Kingdom – Danny Dorling

PART III REFORM OF CORPORATE GOVERNANCE, INDUSTRIAL STRATEGY AND FINANCE

9. An ownership revolution – Will Hutton
10. Industrial strategy for post-Covid Britain: a renewed public purpose for the state and business? – Suzanne J. Konzelmann and Marc Fovargue-Davies
11. Restoring pensions collectivism: a new public pension for the UK – Craig Berry
12. When the invisible hand fails, the visible hand should step in! Urgent need for a UK National Investment Bank – Stephany Griffith-Jones

PART IV TACKLING POVERTY AND INEQUALITY

13. Revive the commons! – Guy Standing
14. The people’s stake: inequality and “asset redistribution” – Stewart Lansley
15. Over-leveraged households need debt relief – Johnna Montgomerie
16. Reforming benefits: introducing a guaranteed income floor – Stewart Lansley

PART V A PROGRESSIVE RECOVERY

17. To restructure the British state, the international financial system must be transformed – Ann Pettifor
18. Coronavirus and the national debt – Jan Toporowski and Robert Calvert Jump
19. Progressive tax reform – Jo Michell
20. A progressive recovery – Jan Toporowski