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A piece I wrote in the @Independent on the new economic common sense which has emerged from the Covid-19 crisis and the opportunities for selective, value-driven regrowth which it presents. Unfortunately it’s behind a paywall, so I’ll summarise it below: https://www.independent.co.uk/independentpremium/voices/coronavirus-key-workers-climate-change-economy-lockdown-a9475836.html
We are heading towards a huge recession thanks to covid-19 - OBR is saying that Q2 of 2020 will be the worst quarter of UK GDP on record (-35%) worse than anything we saw during the General Strike in 1921 (-13%) or the 2008 financial crisis (-2%). Tough times lie ahead 1/
Despite the prospect of a recession, a new common sense of what matters is emerging, whereby growth for growth's sake isn't necessarily the priority. C-19 has shown the value of things other than growth - our carers, our neighbours, the environment 2/
We've seen workers in frontline services going from being called low skilled to key workers and the explosion of mutual aid groups and public demos of support for key workers shows a shift of collective priorities away from consumption to more caring, green and mutual futures 3/
As a result what we had been told for a decade amounted to fantasy economics, i.e. using public money to support economic sectors which keep the country together, is now happening on an enormous scale with no questions asked. The old normality is gone, a new one is here 4/
Where do we go from here? We will need to rebuild the economy to climb out of this crisis and that rebuilding process has worked best historically when local and national governments step in to restore long-term investment, e.g. FDR's New Deal and the UK postwar welfare state 5/
The same applies to our predicament. This crisis presents a historic opportunity to grow and rebuild in line with our new collective fundamental priorities - community, care and preventing climate degradation 6/
The question therefore is not whether we want growth, but how we (re)grow selectively those sectors of the economy which we have discovered as being the bedrock of this country 7/
Selective regrowth is being taken seriously elsewhere - last week 170 Dutch academics called for policymakers to shift away from economies focused on GDP growth to distinguish between sectors that need to de-grow… 8/ https://www.trouw.nl/duurzaamheid-natuur/manifest-van-170-wetenschappers-het-is-een-blunder-als-we-niet-groener-uit-de-coronacrisis-komen~b12864df/
…such as extractive industries, and those in need of investment like critical public sectors and clean energy. Value-driven growth is a real possibility 9/
Proposed starting points for rebuilding: properly fund adult social care so that frontline workers are paid a living wage. Second: implement a Green New Deal - invest in renewable energy, public transport, retrofit housing stock, pedestrianise urban centres 10/
Build new democratic economy as advocated by @CLESthinkdo/ @DemocracyCollab in this joint report - exciting ideas ranging from municipal reconstruction investment funds, to “procurement frameworks” to support ethical suppliers in public sector 11/ https://cles.org.uk/publications/owning-the-future/
