In Search of a Global Britain

January, 2017. The Tory Prime Minister stands in Lancaster House behind a podium bearing the words ‘A Global Britain’, and announced plans for the UK to leave the European Single market. She spoke of an outward looking nation that will not tolerate free movement of people. Watching the speech, it is hard not to be reminded of Orwell…the Ministry of Peace that starts wars…the ‘Global Britain’ that closes it’s doors to its 28 closest neighbours. This has all been pretty dismaying for the younger generations,who are more global than their predecessors by nature (there’s a great YouGov poll which backs this up- click here). It’s easy to feel pessimistic about Britain’s, and our own, future.

But don’t despair too much. Yes, the older generations (and a minority of young voters) have shafted 48% of us into rolling in the drawbridge, but the castle is still ours to inherit.The old king may be sitting smugly in his throne and waxing lyrical about regaining control, but he will pop his nostalgic clogs soon. And the heirs of this kingdom are indeed outward thinking, hungry for global business, and tech savvy enough to make it happen. Let’s have a look at some of the Generation Y businesses that are surpassing borders and achieving things that the lumbering giants of old industry cannot.

Why? Because Millenials are working differently to the generations before them, and therefore have different priorities. As Andrea Durkin writes “Millennials are ambitious, but they define success differently from older generations, who tend to value security and vertical growth in an organization. They are socially connected but don’t want to be tethered to large companies.” Studies support this, the generation that watched their parents lose jobs in the recession are more likely to start their own business.

Business owners, by nature, benefit from free trade agreements with other nations. The revolution of the internet gives startups a global reach. They also benefit from skilled immigrant workers. Therefore these entrepreneurial youths are  indeed outward looking, and not hindered by the fear of European power that draws in nationalists in droves. Public attitudes often appear to swing on a pendulum. One decade is austere, the next liberal. President Obama gets elected, President Trump follows. It is to be expected. Therefore, I predict that post Brexit disaster Britain will see the rise of internationalism as Generation Y take power and those pesky Daily Mail reading middle ages descend into geriatric irrelevance. Just give it a decade.

‘A Global Britain’, May said today when outlining her Hard Brexit approach. No doubt, the next few years will see frustratingly unnecessary loss of British access to the single market, cuts of EU funding, a drain of skilled workers away from the UK, economic turbulence and inevitable emigration of businesses and jobs away from Britain. The younger, ‘start up’ generation will certainly feel the effects. It is the final act of violence from the miserly old king clinging on to power. And it will give our generation exactly the fuel we need to take the crown, and create a new definition of what Britain is, and it’s place in the world.

In Defense of Tax Havens- The Panama Papers

What do the leaders of the UK, Iceland, China, and footballing body FIFA have in common? They all had a moment this week in which their palms became clammy, heart beating, and they asked their advisor “What did you say about Mossack Fonseca?”

Because what a week it has been. With the leak of the Panama Papers rich pants have been pulled down in all corners of the globe, revealing sets of embarrassing boxers from Reykjavik to Beijing. The papers, leaked by an unknown source to a German newspaper, list over 200,000 offshore companies, incriminating a staggering 143 politicians worldwide. Headlines are quick to proclaim the latest name to be dragged through the mud, and opposition politicians eager to cry corruption and call those involved “absolutely disgusting” (to quote Labour MP Jess Phillips).

But hey wait a minute- doesn’t this all sound a bit familiar? Except last time it was a Panamanian leak but a Luxembourgish one. In 2014, those pesky folk at the International Consortium of Investigative Journalists leaked the twisted tax secrets of 300 multinationals based in Luxembourg. Among those outed in the LuxLeaks scandal were Apple, Amazon, Starbucks, Walt Disney, Facebook, Microsoft, HSBC, Citigroup, Pepsi…the list goes on…and on.

So what’s different this time around? Well, the focus is more on the world leaders associated with offshore banking than any well known brands. This time it’s people, not just companies, being dragged through the mud. You can almost sense the tabloid journalists salivating. And yes, it does seem highly hypocritical (not to mention ironic) that David Cameron has ‘benefited’ from his father’s involvement in offshore wealth- all whilst battling to reduce a deficit exacerbated by missing corporate taxes. But I don’t blame him, nor any of the others. Why not? The left cry- this is greed, pure, dirty greed.

Well, I disagree. I would like to quote Eric Schmidt here, ex Google CEO, who said he was “very proud of the structure that we set up… it’s called capitalism”.  And what is Capitalism? It’s a system that doesn’t discriminate between moral and immoral, race or gender. It only cares about money. A company’s only aim is to make money and grow. So what happens if the competition are using Tax Havens?

Take Apple for example. Between 2009 and 2012, a staggering $74 Billion was shuffled through an Irish tax scheme, allowing the company to pay just 2% tax on that sum. Now imagine you are a competitor of iTunes that doesn’t have an Offshore tax scheme. Suddenly your company is leaking money at the borders of every country you operate in while Apple is happily using a smokescreen to only pay tax in the Haven on all of it’s non-domestic trade. So do you adapt, or do you honorably cough up big chunks of your income while your competitor grows unhindered by such things?

It is testament to to this logic that so many high profile companies have been involved in these scandals. In a Capitalist world, it is adapt and grow, or be crushed. There is no time for ‘doing the right thing’ and customers (as 2014’s weak ‘Boycott Starbucks’ campaign shows) really do not care enough to be a factor. Last time I checked, Starbucks revenue was still over quadruple that of it’s nearest competitor (Tim Horton’s) worldwide.Don’t get me wrong- if I were a Politician, or in any role where I needed people to like me I would go nowhere near, and Cameron, Gunnlaugson, Infantino, Poroshenko and the rest of them were fools to do so. But money doesn’t care if you like it- it only cares about making more money.

So should Tax Havens be stopped? Definitely- but good luck. To do so would require laws to be passed in an international effort- one which banking lobbies in the US and UK will fight to avoid. The reason? A lot of that money that would’ve been paid in taxes the world over lands neatly in the pockets of the First World elite, including our own Prime Minister. It seems that fiddling taxes is the music piracy of the rich and powerful. Everyone does it, and nobody is quite sure whether it’s illegal or not. Whether it is moral, sensible or logical is a question our Prime Minister and other world leaders that caught called out this week will have to deeply consider. But money is like a river, it will flow through the easiest path. And neither moralists nor taxmen will stop it.

 

 

 

Why Corbyn’s Greatest Strength Could Lose Him The Election.

Who could have predicted our current Political situation? As Westminster whirred to life following the pretty unremarkable summer months, a predictable path was set. For Labour leader, surely Andy Burnham would triumph as the dark haired, white skinned suit capable of giving a convincing speech in roughly the centre ground. Journalists yawned over morning coffees as they prepared the story- ‘Burnham Leads Labour Party’, and we all attempted to be a little bit excited by a vision for the future that just seemed a bit…predictable. In the light of Cameron’s declaration he will stand down at the end of this government, a 2020 Labour win seemed at least plausible, and at most pretty likely.

But then, something happened. A movement which captured the imaginations of citizens previously uninspired by the Labour party coughed up their three quid and swept Corbyn to victory with an astonishing 60% of the vote. Suddenly, people were talking politics. Here, at last, was a figure interesting enough, distinguished from the slippery Centre ground in a way which people appreciate, a knack that only Farage has really nailed in recent years. Corbyn’s values are clear, Left Wing with a pacifist colouring, liberal and somehow (and to use Corbyn’s own term) decent. Agree or disagree, his beliefs are his beliefs, and, if his categorical No on the Trident question is anything to go by, he is sticking to them openly.

Now, voter apathy is rarely caused by divisive figures. Just over a third of the population didn’t vote in the last election- a figure I believe is caused in part by the ever increasing sameness of  the candidates. I mean come on, lets look at Cameron, Miliband, and Clegg – all clean shaven, dark haired mid 40s white men to start with (is this some sort of formula for leadership?). And when they opened their mouths, it was often hard to really distinguish the viewpoints and pick a candidate that felt truly representative, or even truly passionate, about a viewpoint. Promises felt there to be broken, petty squabbles marred the leader debates. Where was the honest politics? The opinions formed over a lifetime and then firmly, and passionately shared? The politics that say, I’m a human being, not a well trained automaton.  

Therein lies Corbyn’s appeal. Sure he’s a little fluffier than the politicians we are used to, with his talk of ‘kinder politics’, and I suppose, the beard. But there is something that Corbyn has that sets him ahead of his rivals- voters trust what he says. And they trust him purely because he is human, untrained, untheatrical- just a person with a point of view. And isn’t that what politics is all about?

Apparently not, according to some of Labours own MPs. “Leadership,” Said Corbyn at the Party Conference, “Is about listening.” And it was this sentiment that MPs were openly conveying when Corbyn let the Nuclear cat out of the bag- before the Labour party had even discussed the subject. Corbyn, many complain, is simply too singular, too independent, too set in his ways, to be a good leader. One Labour MP appeared on Question Time and said that in fact, Leadership is about compromise. And this is something Corbyn needs to learn if he wants to unite the party.

Perhaps this is true. Perhaps Corbyn cannot become Prime Minister without broadening his appeal. Perhaps he should be trained, his message diluted, his rhetoric vaguer. That would probably be the safe option. But maybe, just maybe, the British people are sick of compromise. Maybe they are jaded by politicians who say one thing and do another (after all, it isn’t truly a democracy if you are voted in on lies, surely). Corbyn can be read like a book, and many people don’t like what the book says. But I’ll bet there are a fair few voters who are relieved to be holding a book of Fact, and not Fiction. Corbyn’s leadership represents a change of tone in British politics, and I for one will be glued to the page.