Regarding public good vs business good, Anna Minton’s book ‘Ground Control’ describes how the urban planning process has been distorted in recent years in favour of business and against the public interest. Large sections of our cities (e.g. Liverpool 1) have now been privatised in order to provide lucrative shopping environments. Undesirables (e.g. young people, old people, homeless people) are excluded through various means, such as the ASBO.
The fetishisation of the private sector knows no bounds. The current Neoliberal Party government is being warned that withdrawing investment from the public sector too quickly will deepen the recession, because the private sector is not ready to take up the slack. One reason for this is because the banks are failing to lend. The proposed solution is more ‘quantitative easing’ – increasing the money supply so that the banks have more money to lend. But the evidence so far shows that banks use any additional money in the system to fatten their own balance sheets and pay bonuses, not to lend, no matter how many times Vince Cable ticks them off.
Wouldn’t it make more sense to miss out the middle-man? If the Bank of England has money to pump into the system, the best way to bring us out of recession is to invest directly in public infrastructure projects such as schools, hospitals, and public transport. The banks don’t need to stand in the middle, taking a cut through interest payments. This model of investment is different from PFI, the Neoliberal Party’s preferred mode of infrastructure ‘investment’ since the time of John Major, but why should the private sector sit in the middle of transactions between the government and the people, syphoning off our wealth and adding no value? The banking system in this country is just an organised form of corruption, and the government is entirely complicit.
Opposition to neo-liberalism can be summarised under the heading ‘the moral economy’. In a moral economy, human beings accept moral responsibility for what happens in the economy. We stop pretending that if everyone pursues their own selfish interest an ‘invisible hand’ is going to magically bring about our collective good.
Accepting moral responsibility does not entail taking control of every aspect of the economy. We can accept that, in some areas, properly regulated markets work reasonably well. However, the provision of universal public services should not be left to the market but should be performed by the public sector. Natural resources such as oil and metals belong to us all, and should not be left to small cabals to exploit and profiteer. We need to consume only as much oil as we need to create new renewable energy systems – the rest should be left in the ground if we want to have a future.
In a moral economy we should not be afraid to make qualitative as well as quantitative judgments: just because gambling and pornography are lucrative doesn’t mean they are useful parts of the economy. There needs to be clear understanding of the relationship between business good and public good: there are areas where they overlap and areas where they are mutually exclusive. Where business goes against the public interest it should be discouraged through regulation and taxation, and in some cases banned.
Manipulative technologies such as genetic modification are too dangerous to be left in the private sector. The trivial profit motive should not be involved in decisions which affect thousands of future generations. Harvesting and enclosing genes through patents is something that the public can have no truck with – how can it ever be in our interest? Amartya Sen’s research shows that small-scale farming by peasants is the most productive use of land and resources. We can feed the world with land reform, micro-finance and education. Genetic modification is an unnecessary, greedy innovation.