The politics of envy and the hypocrisy of the right

The Duncan Weldon Economics Matters column

The ‘Politics of Envy’ is a phrase much used by the right. Whenever the left suggest raising taxes on top earners this is what we hear. Any attempt at a rational debate on the issues, any attempt to make an argument based on the principle of people ‘paying their fair share’ or any claim that equality is a social good is met with this simple rebuke.

So it is a little strange to see the right in Britain as a whole engaging in what can only be described as the ‘Politics of Envy’. How else can we categorise the ‘debate’ over public sector pay and pensions?

As I understand it, the argument runs as follows: there is one group of workers who (it is claimed) earn more than the others and have more secure pensions. Therefore this group should have their pay and pensions cut.

Sometimes the argument is phrased in terms of ‘fairness’ – something the left has never been allowed to do. To talk of taxing someone more because they earn more is to be ‘envious’, but to talk of cutting someone’s wages if they earn more is not?

At other times it is couched in terms of ‘economic necessity’, but when the left argues that the higher taxes are needed or that equality is an economic as well as a social good, these arguments are not accepted. What do the Tories et al actually think they will achieve by cutting public sector wages – other than less spending, a smaller tax take and a slower recovery? What will those things do to the public finances?

My favourite line the right have used in recent weeks is to claim that public sector workers only have better pay and pensions as they are unionised. Good. Maybe if private sector workers unionised to the same extent they could enjoy similar benefits. Is the right’s position seriously that it wants ‘fairness’ by leveling down? That it wants to pull everyone down to the lowest common denominator in the name of justice? Seriously? Because I seem to remember they are usually against that sort of thing.

There is a strong economic case against cutting public spending at this point in the economic cycle. We are not out of the economic woods yet and any cuts now, as demand drained from the economy, could push us back down into a ‘double dip’ recession.

But let’s leave aside the straight factual case for the moment (even though I believe it can be won on its merits). I believe the time has come to throw the right’s argument straight back at them. They are engaging in the Politics of Envy.