by Rob Williams
Last year in his speech to the Labour conference in Manchester, Ed Miliband laid claim to rebuilding Britain as One Nation. The Labour leader cited as his inspiration a former Conservative Prime Minister, Benjamin Disraeli, who made a famous speech on One Nation Conservatism in Manchester’s Free Trade Hall which, reflecting the spirit of the times, is now a luxury hotel.
Miliband has hit the nail on the head on a number of big ideas. He understands that the squeezed middle, as well as the low paid, are feeling increasingly insecure, whatever claims of economic recovery there may be.
So this year, Miliband should go further. It is time for the left to reclaim the economist Adam Smith as one of their own. Adam Smith, of course, is usually considered to be the founding father of right-wing free market economics. In the UK, the Adam Smith Institute is reliably one of the most outrageous think tanks, an outrider of Thatcherism before it was invented.
Adam Smith was born in Scotland in 1723, and is usually seen as the founder of modern economics. The usual modern conservative’s view of Adam Smith is similar to the average 1970s socialist’s approach to Karl Marx. They probably haven’t read any of his work, but simply regurgitate someone else’s description of his writings. There is a persuasive argument that the Right have stolen Adam Smith’s identity in an audacious coup.
An increasing number of thinkers believe that Smith was a radical critic of the establishment of his day. They argue that, for Smith, prosperity was measured by a rise in living standards for the working class which sets Smith apart from other free market advocates who believed a low-wage economy was the key to economic development. Smith believed that economic policy should be secondary to moral and ethical concerns such as equality.
