Britain, Dalrymple notes, has several very severe problems, and this is evident the moment you leave a prosperous area whose residents are likely to vote Conservative. Among the problems are
- stagnation of productivity
- precariousness of income
- deficiencies in public services
- low cultural and educational level of much of the population
- inadequacy of the housing stock
the only solution heard to these problems is more government expenditure. The Conservatives went in for this — Theresa May refused to rule out tax increases, for example.
Socialist calamity looms
Thus an alarming aspect of the election was
the recrudescence of the politics of envy and resentment.
The Labour party under Jeremy Corbyn
radiated dislike of the prosperous, even the modestly prosperous.
The party’s solutions to the country’s problems were supposedly to be paid for by higher taxes on the richest 5% of the population.
This proposal overlooked the fact that the top 1% of earners already pay almost three times as much in income tax as the bottom 50% combined.
Wealth, Dalrymple points out,
is dynamic rather than static, resembling the bloom of a grape, not a cake to be sliced.
Taxes on capital (in other words, state expropriation) were Corbyn’s obvious next step,
with capital flight the equally obvious consequence.
None of this worried the young,
who had as yet no stake in property, only what are sometimes called ideals. The Labour party offered them and others the beguiling vision of living perpetually at the expense of others — Bastiat’s definition of the state. The Laffer curve meant nothing to them; punishing the prosperous was more important and gratifying than understanding how to maximise tax receipts.
Dalrymple comments:
The election could take Britain back more than 50 years.