British politics appears to have reached a new nadir and an insurmountable impasse. Recent votes in Westminster have firstly successfully opposed the government’s plans and secondly failed to oppose the government. We are left with the situation that the government remains in power but its plans have been rejected.

Much of this arises from the problems of two-party tribal politics which rather than address a problem itself but instead  promotes a party’s programme. This is compounded by the present leaders of the two  parties. Both leaders have parties seriously split on the issue of Brexit. The Tories have a leader, who is at heart a remainer, trying to manage a programme of leave to please the staunch ‘leavers’ in her party. Labour has a leader, who at heart is a leaver, trying to offer a programme that will please the remainers who largely control his party. The Liberals, the only party who have a party, programme and leader backing remain, are so inconsequential in British politics at present that the only debate in town is between the two major parties with their discordant leaders.

No-one has a plan to get out of this impasse. There is nothing which can suit all the needs of the two political parties. Neither party is single-minded in its desire to either support the decision of the referendum to leave the European Union or to propose something else.  The only thing uniting them is that both of them are terrified of a ‘no deal’ scenario. This despite Theresa May recognising (one of the few things she grasped correctly) that “no deal is better than a bad deal“. All our parliamentarians, of any hue, are unable to countenance ‘no deal’ scenario, even though it may be unavoidable and may also be preferred.

A deal, or a ‘managed’ withdrawal, may well be the best way to proceed. However, sometimes it is not. Think of a “managed economy”, these never function as efficiently as free market economies. In complex situations allowing individual actors to work out the best way to proceed, and chop and change as necessary, is better than an agreed centrally-‘managed’ plan. Centrally managed agriculture lead to famines. Centrally managed healthcare in Europe provides poorer healthcare than the mixed market healthcare alternatives. Situations can be managed when all the data is known but in complex situations there are many things which can not be known in advance. Rather than a committee of bureaucrats trying to plan fishing, healthcare, automotive industries, IT services, financial services, mining, agriculture, food processing,  forestry, electrical engineering standards, inter-university cooperation, medical devices, medication and aircraft standard, and so on and so on. It would be better to allow all the agents involved to work this out for themselves. It will probably prove quicker and will, almost certainly, find better solutions. Even is there is a managed deal,  we  will still need to see individuals and organisations modifying and adapting  it to make it work, as the likelihood of a centrally decided plan fitting all eventualities is negligible.

But, even if you want a managed separation and a deal, then there is still a need to consider a “no deal” scenario. In every negotiation the two agents have their bottom lines, the point at which they think the available deals are not worth having, and the points at which they need to walk away from the negotiations. Imagine the scenario of going into a car showroom and announcing “Right I want a car. I am going to buy it here and I want it today. I don’t care how difficult it is but I warn you now that I am not leaving here without having bought a car. I will not consider the idea of you not selling at least one car to  me. Right what have you got ?” How likely is it that you will obtain a great deal ? You will be relying on the benevolence of  car salesmen, not a wise move. Every negotiator has a line in the sand, the line at which they decide to go for the no deal option, not to consider this is extremely foolhardy.

No deal will be followed by disruption and change, but so will any deal.  At present the EU, and UK leaders,  wish to minimise the disruption to global capital and large corporations and to cause as little disruption to governing organisations which manage many governmental agencies. Unfortunately they are forgetting that the reason people voted for Brexit, and the reason many European people are also upset, was because of the power of global capital, large corporations and remote undemocratic government. They wanted to weaken the powers of corporations and force them to pay national taxes and listen to local governments. They wanted to stop changes in culture which central governments held valuable for the needs of capital. They opposed the ability of capital to bus in cheap labour to undercut local workers; something bad both for the local workers and the home economies of the migrant workers.

Companies may complain that without a deal they fear their profits will be hurt. Populations may reply  “That is tough but that is precisely why we voted as we did. We are fed up with your greed“. Governmental bodies may worry that without a deal their authority may be diminished, but that was the point. No deal allows a blank slate and the opportunity of all to create the future arrangements they want. I recall every election, when I was a youth, the warnings of dire economic calamity if the nation even considered voting for labour. It is no different now to then, those in power and those with the wealth, will try everything to keep it including trying to scare us into accepting a good deal for them and a bad deal for us.

There are many problems with capitalism at present. Crony capitalism is now gathering the increased wealth, that only a market economy can create, into increasingly few pockets. Institutions like the EU are the mechanisms to promote this and they, and the crony capitalists, need to be weakened. This will not be without pain. But if it is done well then hopefully most of the pain will be felt by the rich and powerful who can best deal with it, and may even be thought to deserve it. An unmanaged Brexit may well be the best way to do this.

4 thoughts on “The Impossible Deal

  1. But you know it will never happen, nothing will happen, it will all stay the same with the exception that the UK will have to pay the 39Bn for all the messing about.

    1. There is certainly a high possibility of that outcome. It will certainly not be £39bn well spent. I never had enormously high expectations for those who govern us but I never thought that they’d be able to disappoint to quite this level.

  2. While I have not fully understood the Brexit dilemma, I am living out its parallel here in the U.S. A president who hates government has managed to shut it down. Now he is requiring that thousands of workers return to work without pay. I am astonished that one bully can wreak such havoc.

  3. I look at what is happening where you are and what is happening here and wonder – “How did we get into this mess?” It is almost unimaginable the scenarios that we now see and just shrug our shoulders. Politics has always been about power and ambition but it used to operate under a screen of moral probity. It seems that now all pretence has been washed away.

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