When politicians talk about economic strategy, they tend to focus on the shiny and high-tech. But there is a whole aspect of the economy which provides the basic goods and services needed for everyday life. It’s not seen as glamorous, but it’s essential to the functioning of society. This week we hosted a major speech from Rachel Reeves MP. She launched a pamphlet on a new political economy that aims to bridge our divides – one with work, family, and local places at its heart. Rachel Reeves is the MP for Leeds West. She is currently the chair of the Business,
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When politicians talk about economic strategy, they tend to focus on the shiny and high-tech. But there is a whole aspect of the economy which provides the basic goods and services needed for everyday life. It’s not seen as glamorous, but it’s essential to the functioning of society.
This week we hosted a major speech from Rachel Reeves MP. She launched a pamphlet on a new political economy that aims to bridge our divides – one with work, family, and local places at its heart.
Rachel Reeves is the MP for Leeds West. She is currently the chair of the Business, Energy and Industrial Strategy Select Committee. She was Shadow Chief Secretary to the Treasury 2011-2013, and Shadow Minister of Work and Pensions from 2013-2015.
Her speech was discussed by Larry Elliott, economics editor at The Guardian, and Ann Pettifor, director of Prime and a New Economics Foundation Fellow.
Here are some highlights.
We’re kicking off our #everydayeconomy event with @RachelReevesMP @AnnPettifor @Miatsf and Larry Elliott pic.twitter.com/kvhiRTr2QD
— NEF (@NEF) March 22, 2018
We have constructed an economy where power has shifted away from working people.
The neoliberal settlement is exhausted but we need an alternative to replace it with – @RachelReevesMP at #everydayeconomy event pic.twitter.com/Z4JetjUDsA
— NEF (@NEF) March 22, 2018
Privatisation and outsourcing created crony capitalism. Companies like Carillion became corporate partners of the state, avoiding market competition while their directors enriched themselves on a steady flow of taxpayer-guaranteed revenue. #everydayeconomy https://t.co/5NgXIvdcbY pic.twitter.com/6XsAI3PUwL
— Rachel Reeves (@RachelReevesMP) March 22, 2018
The balance of power between capital and labour has shifted decisively away from working people. Wages fell and household debt rose, while company directors paid themselves in share options and took huge increases in their income. #everydayeconomy pic.twitter.com/VbDOaKUxlM
— Rachel Reeves (@RachelReevesMP) March 22, 2018
“We’ve become an economy of wealth extraction rather than wealth creation” @RachelReevesMP at @NEF’s #everydayeconomy pic.twitter.com/bYDYBljGge
— Tom Jeffery (@tdwjeffery) March 22, 2018
A hidden Britain has grown up in the shadow of the new economy – poor and lacking power – @RachelReevesMP #everydayeconomy
— NEF (@NEF) March 22, 2018
We need an alternative to replace our current economic system, one which supports those on middle and low incomes. Economic policy should pay attention to those who work in the ‘everyday economy’.
We need a new political economy to heal our divisions. We can begin by making sure that our political priorities are the things that really matter to people: decent work and wages, secure families and homes, safe and flourishing places to live. #everydayeconomy pic.twitter.com/fipqRlACd6
— Rachel Reeves (@RachelReevesMP) March 22, 2018
Our models of industrial strategy neglect the middle and low paid. We need a national plan for improving the quality, pay and productivity of jobs in the everyday economy. #everydayeconomy https://t.co/5NgXIvdcbY pic.twitter.com/KXjDwe8YqY
— Rachel Reeves (@RachelReevesMP) March 22, 2018
Workers should be better represented within their companies.
Employees should make up at least one third of company boards – @RachelReevesMP #everydayeconomy
— NEF (@NEF) March 22, 2018
“Too many workers have lost their sense of common purpose” – @RachelReevesMP calls for worker representation on company boards #everydayeconomy pic.twitter.com/v4Xz9JX4Ju
— Tom Jeffery (@tdwjeffery) March 22, 2018
And power must be spread throughout the country, not simply concentrated in the South East.
We need to spread capital and power through the country – @RachelReevesMP calls for devolution and community wealth building #everydayeconomy
— NEF (@NEF) March 22, 2018
#Devolution should involve proactive state intervention to provide a “universal basic infrastructure”, says @RachelReevesMP at #everydayeconomy pic.twitter.com/lyq895g9v6
— Tom Jeffery (@tdwjeffery) March 22, 2018
Anchor institutions such as hospitals, universities, schools, businesses and trade unions can help sustain and boost local economies, building bridges between workers, employers, suppliers and the community @RachelReevesMP #everydayeconomy
— Adrian Pabst (@AdrianPabst1) March 22, 2018
Ann Pettifor proposed some approaches for creating a new political economy.
“For many people, work is a way into poverty, not a way out of poverty”: @AnnPettifor at #everydayeconomy pic.twitter.com/BZ7PCu3oDi
— Tom Jeffery (@tdwjeffery) March 22, 2018
We need politicians to focus on domestic economy not international capital markets – means talking about monetary policy – @AnnPettifor #everydayeconomy
— NEF (@NEF) March 22, 2018
Increasing pay for NHS staff and upskilling (mainly female) carers almost pays for itself says @AnnPettifor #everydayeconomy pic.twitter.com/wY1ckc9106
— Matthew Ponsford (@mjponsford) March 22, 2018
And Larry Elliott shared some ideas of his own.
Larry Elliott: the left has to move beyond tax and spend redistribution – we weren’t ready for the previous crisis of Keynesian economics so right filled gap #everydayeconomy
— NEF (@NEF) March 22, 2018
@NEF Larry Elliott: Britain is the most centralised economy in Western Europe. We need to unclench and devolve power regionally – it’s where the best initiatives are happening. #everydayeconomy
— Asha Tharoor (@AshaTharoor) March 22, 2018
Our current economic system is failing. We need a new approach which doesn’t neglect the foundational, everyday economic interactions.
Inspiring to hear @RachelReevesMP giving concrete suggestions for a new political #everydayeconomy yesterday at my first @NEF event. "We are wealthier as a country but more divided and unfair, freer but lonelier, more plural but less sure of who we are." https://t.co/n65XroZ8bw
— Iona Popat (@IonaPopat) March 23, 2018
One of the best things about my job is getting to listen to smart, interesting people talk about ideas. Keeping alive the flame of optimism that another way is possible. Thanks to @RachelReevesMP & @NEF for a great discussion #EverydayEconomy pic.twitter.com/WXpOybxTvD
— Claire McCarthy (@CoopClaire) March 22, 2018
Impressive speech by @RachelReevesMP – very much identifying & suggesting actions to make things better. Because carrying on doing the same old things, delivers the same old tired, unequal results.#EverydayEconomy
— Mark Hooper (@markjhooper) March 22, 2018
A really thoughtful and inspiring talk from @RachelReevesMP on the everyday economy and how we need to reform work, rights and rewards for the common good. @NEF #everydayeconomy ? pic.twitter.com/rj2OCoYOue
— Jim McMahon MP (@JimfromOldham) March 22, 2018