Liberty, Politics and Economics

Real Democracy Lies in Purchasing Power not Committee Meetings.

In Ed Miliband’s Hugo Young Lecture this week he outlined his solution to unresponsive and unaccountable state services.  He proposes to give more power to the people. He wants to provide the public with more information.  He wants local people to be consulted about local decisions and he wants local government to take back more power from the centre.  Laudable aims, but how will this be implemented?

Labour will give power to the people so long as their decisions are constrained within their preconceived framework of socialist thinking. So the services would still be state run and monopolistic but the public would be allowed to influence the flavour or hue.  This is not power or freedom. It’s being imprisoned in a series of endless bureaucratic meetings, which will be dominated by a few activists who have the time and energy to expend on a narrow cause. This will inevitably include the type of full time agitators, anarchists and protestors we see objecting to fracking and busily occupying London.

Oscar Wilde’s remark that Socialism would never work because there aren’t enough evenings in the week seems to be accurate. Mr Miliband’s pledge that local people will be consulted on decisions is typical of Labour’s illusion that ordinary people are desperately clamoring to give up their free evenings to sit on the local committee for refuse collection or to influence the local clinical commissioning panel. The voice of the silent majority will remain just that because they have better ways to spend their time than arguing with a few highly motivated extremists. So it would not be very democratic either.

Real power lies with whoever holds the purse strings.    So instead we should introduce a voucher system, which we can all use to procure the type of local services we want.  For example, we would have the power to use our Medical Voucher to choose our own doctor, our Education Voucher to choose our child’s school and our Refuse Collection Voucher  to choose who empties our rubbish bin.   We would all get an equal opportunity to influence these services and providers will be kept on their toes because revenue would flow to those providing the best service.

However the public sector Unions and left-leaning politicians would become impotent under such a scenario. They only have power if we have no choice but to use their monopolistic services.   For this reason neither would allow it.  In reality they will constrain the decision making to the Henry Ford solution. You can have any colour you like so long as it’s black – or in this case, red.