Even Cameron knows that the Eds are right now

Today’s PMQs was a poor Punch & Judy show but an excellent window into the strategic debate that will dominate British politics between now and the election, because, as ever, “it’s the economy, stupid.”

We gained two critical insights from the Leaders exchange this afternoon. Ed Miliband sided himself with the 99% and explicitly took aim at the 1% that are profiting whilst the rest of the nation feels the squeeze on living standards. When Miliband originally argued for the “squeezed middle” the counter was that his definition was too wide. Now if anything, it may seem to have been too narrow. What’s more, Miliband’s conference dividing line of “producers and predators” also met with initial consternation from the cognoscenti but as executive pay soars and inflation cuts into regular wages that too looks set to gain ground.

But it was Cameron’s acceptance of the economic argument’s frame that should worry Tories and encourage Labour strategists most. With Cameron counterattacking Miliband on high pay and regulation he is making the serious mistake of accepting the Left’s frame of the economic debate. As a result he risks an economic policy arms race with Labour that he can’t hope to win: Labour can always outpace the Tories on cracking down on excessive board room pay and tightening city regulation. Messaging guru’s like George Lakoff or Frank Luntz wax lyrical on the dangers of accepting your political opponents framing. As an example, Osborne’s tailspin over the Financial Transaction Tax is testament to the innate contradictions of Cameron’s approach as all the Tories end up doing is increasing expectations beyond their political capacity to deliver.

The result is that even as Labour rightly worries over the state of the economy, Miliband and Balls can feel good about the economic argument they are making: even Cameron seems to think that it’s Labour that’s on the right ground now.

Marcus Roberts is the Deputy General Secretary (designate) of the Fabian Society. He writes in a personal capacity.