WEBVTT - What Centrist Politics Is Getting Wrong

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>I feel that we talk obsessively that the problem in

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<v Speaker 2>politics is at the extremes, far right, far left. I

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<v Speaker 2>think the problem is actually in the center.

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<v Speaker 1>Welcome back to voter Nomics, where politics and markets collide.

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<v Speaker 1>This year, voters around the world have the ability to

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<v Speaker 1>affect markets, countries and economies like never before, so we've

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<v Speaker 1>created this series to help you make sense of it all.

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<v Speaker 3>I'm alegro Stratton and I'm Adrian Woodridge.

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<v Speaker 1>In a week of difficulties for political leaders around the world.

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<v Speaker 1>I Love Schultz in Germany just about clinging on in

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<v Speaker 1>an important election, Prime Minister Michelle Barnier in France in

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<v Speaker 1>power but struggling to see how he will get his

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<v Speaker 1>agenda through the French Parliament. And in the UK, Keir

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<v Speaker 1>Starmer hit by a scandal around free gifts that pretty

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<v Speaker 1>much nobody saw coming. We're going to talk more to

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<v Speaker 1>the gentleman you heard at the top of the podcast.

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<v Speaker 1>Michael Ignatief was the leader of Canada's Liberal Party from

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<v Speaker 1>twenty or six to twenty eleven. He led his party

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<v Speaker 1>to an historic defeat. More of that interview later, but

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<v Speaker 1>first of all, we're heading into the final stretch of

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<v Speaker 1>this year of elections, aren't we, Adrian and I think

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<v Speaker 1>actually the realities even for some of those elections which

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<v Speaker 1>have been and gone and we have conclusive results like

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<v Speaker 1>the one in the UK, it is not plain sailing

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<v Speaker 1>for those new governments. It's quite a startling turnaround, isn't it.

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<v Speaker 3>It's quite extraordinary. We have the Labor Body conference it

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<v Speaker 3>order to be a great celebration. You know, Labor has

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<v Speaker 3>just come back to power with a massive majority of

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<v Speaker 3>the tours have collapsed. They have i think the goodwill

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<v Speaker 3>of most people in the country, and yet it's a

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<v Speaker 3>pretty miserable atmosphere reading between the lines, partly because of

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<v Speaker 3>this extraordinary scandal over accepting gifts that Starmer has got

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<v Speaker 3>itself involved in, partly because of his sort of miserablest

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<v Speaker 3>a gender. He's talked constantly about how bad things are

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<v Speaker 3>and now they're trying to change it a bit, but

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<v Speaker 3>in a very performative way. But the problems of this

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<v Speaker 3>country are really very deep and it's going to take

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<v Speaker 3>a long time to fix them. It's difficult for you know,

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<v Speaker 3>what are essentially centrist politicians to come back into power

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<v Speaker 3>and you know, righte onto victory.

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<v Speaker 1>But Sir Adrian, I'm interested in your take on the

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<v Speaker 1>free clothes, get tickets, spectacles, uh, personal shoppers. Froth Or

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<v Speaker 1>says something deeper.

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<v Speaker 3>You only get one chance to make a first impression,

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<v Speaker 3>and their first impression has not been good. And they've

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<v Speaker 3>also acted in you know, hypocrisy is the greatest of

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<v Speaker 3>all sins in the democracy, and they've been hypocritical. They

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<v Speaker 3>lacerated the Tories for corruption, for party gates and all

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<v Speaker 3>the rest of it. They come in to pow and

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<v Speaker 3>they do what most people consider as be very similar things.

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<v Speaker 1>When Rachel Reeves made her speech to conference, the backdrop

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<v Speaker 1>was something we called it read out the booming gloom.

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<v Speaker 1>You know, it's gone too far, And as you say,

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<v Speaker 1>they all were sort of instructed to go out and

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<v Speaker 1>course correct and be less gloomy. And one of the

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<v Speaker 1>nuggets in her speech was this idea that you know,

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<v Speaker 1>the investment is the answer, and that maybe even the

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<v Speaker 1>government treasury rules might be looked at in order to

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<v Speaker 1>allow borrowing to invest. So I think they're trying to

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<v Speaker 1>say to their supporters, are who are immensely grumpy that

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<v Speaker 1>they've had to go out and defend these free clothes,

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<v Speaker 1>which they don't think are defensible. They've contorted themselves into

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<v Speaker 1>all sorts of weird arguments in order to make the case,

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<v Speaker 1>which they're not comfortable with. So they're having to say

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<v Speaker 1>to their own followers, look, you know, there is a

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<v Speaker 1>point to this labor government after all. Just just wait

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<v Speaker 1>until the budget, which is six weeks away.

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<v Speaker 2>Yeah.

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<v Speaker 3>The problem is that they sort of have this mentality

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<v Speaker 3>of basically saying, invest in Britain, We're a basket case.

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<v Speaker 3>I mean, they've spent so long saying how awful things

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<v Speaker 3>are and how many deep structural problems Britain has, which

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<v Speaker 3>it does that it's also now very difficult to get

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<v Speaker 3>foreign investors to come here and invest. Also, a lot

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<v Speaker 3>of the solutions to the shortage of money, for example,

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<v Speaker 3>such as public private partnerships, which I think they will

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<v Speaker 3>revive in some sort of way. In the past they've

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<v Speaker 3>demonized and said is a terrible set of ideas.

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<v Speaker 1>Adrian looking further afield France, you know, the kissed armor

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<v Speaker 1>could take some comfort from thinking he's you know, he's

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<v Speaker 1>not alone looking across to France, where Michelle Barnier has

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<v Speaker 1>become Prime Minister, but it is still not clear how

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<v Speaker 1>he can get through Parliament what he'd like to get through.

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<v Speaker 1>And then Olas Schultz in Germany just about clung on

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<v Speaker 1>in an election at the weekend, but it was a

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<v Speaker 1>very very close wrung thing. So, as is the theme

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<v Speaker 1>of this podcast, the travails of world leaders continue.

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<v Speaker 3>Oh absolutely, Barnier is trapped in a really paralyzed political system,

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<v Speaker 3>and Schultz, I mean, the way the only way he

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<v Speaker 3>sort of survived I think in this election was not

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<v Speaker 3>appearing himself, you know, he sort of he sort of disappeared.

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<v Speaker 3>He hid himself during the election campaign because he's so

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<v Speaker 3>so unpopular. He's a drag on the ticket. But I

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<v Speaker 3>think there's something bigger here that's going on, not just

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<v Speaker 3>France and not just Germany, Europe as a project. I

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<v Speaker 3>read that the Draggy Report on European economic performance, and

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<v Speaker 3>not only is it incredibly depressing, but the one solution

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<v Speaker 3>that Draggy seems to think we need to have, which

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<v Speaker 3>is much more centralized investment in high tech and the

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<v Speaker 3>rest of it, seems to be something that we can't do.

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<v Speaker 3>So it's hard to see the great phrase the light

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<v Speaker 3>at the end of the tunnel, which Kisamoril and doubtedly

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<v Speaker 3>use in his speech today. It's hard to see any

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<v Speaker 3>light at the end of the tunnel for the whole

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<v Speaker 3>of the European continents, so not good news for anybody

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<v Speaker 3>at the moment.

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<v Speaker 1>Didn't somebody want to say that the lights from the

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<v Speaker 1>end of the tunnel is an oncoming train.

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<v Speaker 2>Be careful of those lights at the end of the probably.

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<v Speaker 1>Okay, Now let's get to our main conversation of the podcast.

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<v Speaker 1>We're joined by former politician and professor in the history

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<v Speaker 1>department of the Central European University in Budapest, where he

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<v Speaker 1>was also president for five years, Michael Ignatief. Michael led

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<v Speaker 1>Canada's Liberal Party and official opposition from twenty ozh six

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<v Speaker 1>until he lost his seat in the twenty eleven election.

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<v Speaker 1>That elections saw his party win the fewest seats in

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<v Speaker 1>its history and be reduced to third party status for

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<v Speaker 1>the first time ever. Now, Michael, we often have analysts

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<v Speaker 1>and academics and writers on this podcast, but we don't

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<v Speaker 1>frequently have politicians or people like yourself who've actually been

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<v Speaker 1>on the front line. Before we get onto sort of

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<v Speaker 1>high minded questions of voted discontent and so on. Just

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<v Speaker 1>talk to us about you know, just for me reading

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<v Speaker 1>out those sentences, fewer seats in history and so on.

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<v Speaker 1>Is it still painful?

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<v Speaker 2>Oh? Sure, sure, you don't go into Pola digs unless

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<v Speaker 2>you think you got a pretty good chance of winning.

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<v Speaker 2>And the Liberal Party of Canada was like to think

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<v Speaker 2>of itself as the adults in the room, the natural

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<v Speaker 2>governing party of the country. I think we failed to

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<v Speaker 2>respond to the two thousand and eight financial crisis. I

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<v Speaker 2>think we failed to understand just how radically destabilizing that

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<v Speaker 2>had been to everybody's expectations and how destructive it was

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<v Speaker 2>to their confidence in the center of Canadian politics. And

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<v Speaker 2>so I ran as a centrist, moderate gradualist of a

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<v Speaker 2>kind that we'd known for many years, and it didn't

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<v Speaker 2>fit the sense of radical destabilization and uncertainty that hit

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<v Speaker 2>the Canadian public in two thousand and eight and two

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<v Speaker 2>thousand and nine. So we got clobbered, and to go

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<v Speaker 2>back to where we started it's a very very difficult

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<v Speaker 2>experience to get over. I've had a fantastic time since politics,

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<v Speaker 2>and I'm all fine and don't cry for me, Argentina,

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<v Speaker 2>but it wasn't easy.

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<v Speaker 3>I'm can I ask you a little bit about the destabilization.

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<v Speaker 3>I just wonder there was a sort of formula that

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<v Speaker 3>liberalism reached, which was economic liberalism to social liberalism, and

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<v Speaker 3>that did brilliantly in the nineteen nineties under Blair and Clinton.

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<v Speaker 3>But are we seeing that formula falling apart everything like

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<v Speaker 3>immigration and public health and all sorts of areas. Do

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<v Speaker 3>we need a new formulation of liberalism to deal with

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<v Speaker 3>the fallout of the economic of the financial crisis and more.

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<v Speaker 2>Andrew, I think there's something to that. I feel that

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<v Speaker 2>we talk obsessively that the problem in politics is at

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<v Speaker 2>the extremes, far right, far left. I think the problem

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<v Speaker 2>is actually in the center. I'm a liberal, proud liberal,

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<v Speaker 2>but I think we didn't listen at all to the

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<v Speaker 2>white working class that in my childhood was in unions,

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<v Speaker 2>was organized, felt intense pride in the work they were doing,

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<v Speaker 2>and then lost income, lost status. From the early nineteen

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<v Speaker 2>seventies onwards. We didn't listen or pay attention to the

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<v Speaker 2>staggering increase in inequality that began to set in after

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<v Speaker 2>the oil crisis of the seventies, and so instead we

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<v Speaker 2>focused this is the more controversial part on a revolution

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<v Speaker 2>and inclusion, which men embracing a multicultural society, embracing the

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<v Speaker 2>consequences of feminism, bringing racial minorities into the center. I'm

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<v Speaker 2>in the universities now, and we've enormously promoted the entry

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<v Speaker 2>of recent immigrants, minority groups, women into the heights of

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<v Speaker 2>higher education, preaching the doctrine of equality of opportunity. But

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<v Speaker 2>the equality we delivered were for those groups and not

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<v Speaker 2>for the white majority, and I think that's triggered an

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<v Speaker 2>enormous backlash and it's threatening the center of politics. Let

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<v Speaker 2>me be clear, I am a passionate believer in the

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<v Speaker 2>revolution of inclusion. It's been the best thing that liberalism

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<v Speaker 2>did since nineteen sixty. But I think we neglected to

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<v Speaker 2>realize how disruptive it was to the subtle expectations of

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<v Speaker 2>the white majority, and that now has left our politics

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<v Speaker 2>open to politics of revenge, of politics of resentment, which

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<v Speaker 2>simply has to be dealt with. These are good citizens,

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<v Speaker 2>they need to be listened to. We need to think

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<v Speaker 2>this through, but without I woult to want to emphasize

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<v Speaker 2>walking back on the inclusion that I think has done

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<v Speaker 2>so much good to society.

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<v Speaker 1>Michael, what would you do differently?

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<v Speaker 2>Boy? That's such a good question and so difficult. I think,

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<v Speaker 2>first of all, we'd simply acknowledge that this is a problem.

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<v Speaker 2>Instead of acknowledging that it was a problem. We condemned

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<v Speaker 2>white working class voters as racist or sexist when we

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<v Speaker 2>weren't addressing the politics of feeling disempowered, excluded, and not

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<v Speaker 2>listened to. There are racists out there, there are sexists

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<v Speaker 2>out there. But we adopted a kind of conviction that

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<v Speaker 2>our moral belief in a multicultural, feminist, inclusive society was

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<v Speaker 2>such a self evident good that it didn't need to

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<v Speaker 2>be politically defended. And I think we lectured people instead

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<v Speaker 2>of listening to people. That's kind of number one. Number two,

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<v Speaker 2>since immigration has become the ferocious source of discontent across Europe,

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<v Speaker 2>we didn't manage something basic, which is a have a

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<v Speaker 2>regular legal immigration stream that is, welcome immigrants through a

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<v Speaker 2>legal channel, and secondly, have an extremely tough repatriation strategy

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<v Speaker 2>for illegals. The thing that is devastating the fragile consensus

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<v Speaker 2>on immigration is a sense that the country's borders are

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<v Speaker 2>not secure. Is a problem in the United States, it's

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<v Speaker 2>become a problem in Canada. It's a problem in every

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<v Speaker 2>European state, and until we re establish the legitimacy of

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<v Speaker 2>national borders and the credibility of immigration control, we can't

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<v Speaker 2>sustain what I firmly believe in as the son of immigrants,

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<v Speaker 2>a regular, lawful immigration stream that compensates for our declining

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<v Speaker 2>birth rate, fills the jobs that need to be filled,

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<v Speaker 2>and creates avenue of opportunity for the fantastic people who's

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<v Speaker 2>so enrich for example, Britain, Canada, every society.

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<v Speaker 1>I mean, we're talking about twenty eleven when you left power.

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<v Speaker 1>We're now in twenty twenty four. This is thirteen years

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<v Speaker 1>where the dynamics don't seem to be hugely different from

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<v Speaker 1>the ones you're describing as getting wrong in twenty eleven.

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<v Speaker 1>Have you been surprised to watch things over the last

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<v Speaker 1>thirteen years not change and possibly get even worse than

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<v Speaker 1>successive governments not dealing with them.

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<v Speaker 2>I think I am surprised. I think you've got a

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<v Speaker 2>good point there. I think what's staring us in the

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<v Speaker 2>face is a capacity problem as well. I'm struck by

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<v Speaker 2>the fact that we have so much difficulty controlling borders.

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<v Speaker 2>I mean, in Italy, I get it, it's got such

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<v Speaker 2>a huge literal and it's exposed into the Mediterranean. But

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<v Speaker 2>I am a bit surprised that two powerful nation states,

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<v Speaker 2>Britain and France cannot control these boats. I simply don't

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<v Speaker 2>understand it. And then the solutions that are proposed flying

0:14:05.040 --> 0:14:08.320
<v Speaker 2>everybody to Rwanda are so ridiculous that you can't imagine

0:14:08.360 --> 0:14:12.840
<v Speaker 2>that they aren't laughed off the table of British politics.

0:14:13.440 --> 0:14:17.400
<v Speaker 2>So there is something very odd about what's going on.

0:14:17.520 --> 0:14:21.920
<v Speaker 2>And I think it's corroding not just support for migration,

0:14:22.760 --> 0:14:26.280
<v Speaker 2>it's corroding support for the liberal democratic state. If you

0:14:26.400 --> 0:14:31.360
<v Speaker 2>can't control your borders, you're failing the primary obligation of

0:14:31.440 --> 0:14:33.120
<v Speaker 2>any state, liberal or otherwise.

0:14:33.320 --> 0:14:35.440
<v Speaker 3>But I wonder if there's a sort of strange paradox

0:14:35.480 --> 0:14:40.480
<v Speaker 3>here that if liberals, if centrists, fail to deliver policies

0:14:41.040 --> 0:14:43.680
<v Speaker 3>that can be judge in a practical way improving people's

0:14:43.680 --> 0:14:47.440
<v Speaker 3>living standards, they get punished, But if populists fail to

0:14:47.520 --> 0:14:51.000
<v Speaker 3>deliver practical solutions to problems, they get rewarded, in the

0:14:51.000 --> 0:14:55.120
<v Speaker 3>sense that people ask the more and more extreme populist policies.

0:14:55.200 --> 0:14:58.200
<v Speaker 3>There's a sort of asymmetry here in the way that

0:14:58.200 --> 0:15:01.160
<v Speaker 3>the politics is judged, which is extreme destabilizing.

0:15:02.080 --> 0:15:05.800
<v Speaker 2>That's a very interesting remark, Adrian, and I think it

0:15:05.840 --> 0:15:09.560
<v Speaker 2>has to be true, but it reinforces my point that

0:15:10.120 --> 0:15:15.400
<v Speaker 2>the center can hold only so long as the center delivers.

0:15:16.440 --> 0:15:20.800
<v Speaker 2>When the center lectures the public, why aren't you more rational?

0:15:20.840 --> 0:15:23.800
<v Speaker 2>Why aren't you more reasonable? Why don't you accept our

0:15:24.000 --> 0:15:29.120
<v Speaker 2>entire liberal agenda? And then doesn't deliver the basics that

0:15:29.280 --> 0:15:33.560
<v Speaker 2>is a health service you can trust, a secure border,

0:15:34.080 --> 0:15:39.520
<v Speaker 2>and some degree of economic stability. Then the credibility of

0:15:39.600 --> 0:15:43.160
<v Speaker 2>the center gets punished, and then, as you say, the

0:15:43.240 --> 0:15:46.840
<v Speaker 2>extremes get rewarded. And that seems to be to capture

0:15:46.880 --> 0:15:48.840
<v Speaker 2>some of what's going on with our politics.

0:15:49.360 --> 0:15:51.520
<v Speaker 1>So I mean, let's just stay in the abstract for

0:15:51.520 --> 0:15:54.440
<v Speaker 1>a second before looking perhaps if you at your home

0:15:54.480 --> 0:15:57.960
<v Speaker 1>country of Canada. But before that, is this a problem

0:15:58.040 --> 0:16:00.320
<v Speaker 1>of maps, which is that we say that the center

0:16:00.360 --> 0:16:02.280
<v Speaker 1>can hold as long as it delivers, But the problem

0:16:02.320 --> 0:16:06.320
<v Speaker 1>is delivering. Delivering is now really expensive, and delivering requires

0:16:06.680 --> 0:16:09.880
<v Speaker 1>with all of the problems facing advanced nations around aging

0:16:09.920 --> 0:16:12.280
<v Speaker 1>populations and so on, it just requires a lot of money.

0:16:12.320 --> 0:16:14.680
<v Speaker 1>In therefore, tax increases, and that is not something that

0:16:14.720 --> 0:16:15.560
<v Speaker 1>many people vote for.

0:16:16.440 --> 0:16:21.600
<v Speaker 2>I think that's certainly true. I live Allegra in Austria,

0:16:21.720 --> 0:16:26.800
<v Speaker 2>where the center holds because it's basically a high taxation

0:16:27.160 --> 0:16:32.120
<v Speaker 2>environment that manages to hold its legitimacy because it delivers

0:16:32.400 --> 0:16:34.800
<v Speaker 2>the trains around time. The health service is pretty good,

0:16:34.800 --> 0:16:38.360
<v Speaker 2>the education is okay, that you get a kind of

0:16:38.400 --> 0:16:43.600
<v Speaker 2>balanced equiliverum, high taxation but good public goods. In Britain

0:16:43.760 --> 0:16:47.920
<v Speaker 2>you appear to have in international comparison, low rates of

0:16:48.040 --> 0:16:53.920
<v Speaker 2>taxation and very poor public services. And the whole privatization

0:16:54.160 --> 0:16:58.320
<v Speaker 2>effort in the nineties seems to have not delivered the

0:16:58.360 --> 0:17:03.800
<v Speaker 2>service improvements. You have a kind of constantly discontented electorate

0:17:04.240 --> 0:17:08.080
<v Speaker 2>paying more for less, and that's just pulling the center

0:17:08.680 --> 0:17:12.040
<v Speaker 2>out of liberal centrist politics.

0:17:12.560 --> 0:17:15.520
<v Speaker 1>Can you talk to us about the Canadian situation right now,

0:17:15.560 --> 0:17:18.760
<v Speaker 1>which is you've got Trudam in power. He's supposed to

0:17:18.760 --> 0:17:21.280
<v Speaker 1>face an election next year, but it could happen at

0:17:21.280 --> 0:17:24.720
<v Speaker 1>any point, couldn't it. Michael, just talk to us about that.

0:17:25.040 --> 0:17:27.919
<v Speaker 1>And apparently he's facing a politician that some people are

0:17:27.920 --> 0:17:30.920
<v Speaker 1>calling a polite Trump. You may not look.

0:17:31.720 --> 0:17:37.639
<v Speaker 2>I think that my successor as leader of the party

0:17:37.920 --> 0:17:42.040
<v Speaker 2>led the party to a thumping victory in twenty fifteen,

0:17:42.920 --> 0:17:45.280
<v Speaker 2>I left the party in third place, and he took

0:17:45.320 --> 0:17:48.160
<v Speaker 2>it to first place and has been in power ever since.

0:17:48.920 --> 0:17:52.920
<v Speaker 2>But he is now the least popular politician in the country.

0:17:53.480 --> 0:17:56.600
<v Speaker 2>I think the irony there is that I said at

0:17:56.600 --> 0:18:01.120
<v Speaker 2>the time he's an actor who fully inhabits the role,

0:18:01.320 --> 0:18:06.159
<v Speaker 2>which people thought was a very snarky, unkind remark, but

0:18:06.280 --> 0:18:08.840
<v Speaker 2>actually was meant its praise since I was a poor

0:18:08.960 --> 0:18:12.199
<v Speaker 2>actor who didn't inherit the role. I actually intended it

0:18:12.200 --> 0:18:15.000
<v Speaker 2>his praise. But I think people have got tired of

0:18:15.040 --> 0:18:20.000
<v Speaker 2>the act. He's always on message, he always sticks the landing,

0:18:21.000 --> 0:18:26.520
<v Speaker 2>every speaking point is hit, and yet the cumulative effect

0:18:26.720 --> 0:18:31.400
<v Speaker 2>is of inauthenticity. People simply don't believe it anymore. And

0:18:31.480 --> 0:18:35.960
<v Speaker 2>so he's in that terrible situation of often saying the

0:18:36.080 --> 0:18:40.760
<v Speaker 2>right things, but nobody's listening. And I think at the

0:18:40.880 --> 0:18:44.400
<v Speaker 2>moment he faces the prospect of defeat, although he would

0:18:44.440 --> 0:18:47.080
<v Speaker 2>be the last person in Canada to admit it, and

0:18:47.119 --> 0:18:50.119
<v Speaker 2>believes he will lead the party into the next election

0:18:50.280 --> 0:18:52.880
<v Speaker 2>and that he will win the next election. I don't

0:18:52.920 --> 0:18:56.720
<v Speaker 2>quite see how. But one of the great things about

0:18:56.760 --> 0:18:59.760
<v Speaker 2>political leadership is you sometimes have to believe in yourself

0:18:59.800 --> 0:19:02.879
<v Speaker 2>when nobody else does, and that's clearly what he's doing.

0:19:03.320 --> 0:19:05.800
<v Speaker 2>As for his opponent, he's facing a man that I

0:19:05.880 --> 0:19:09.400
<v Speaker 2>knew well in the House of Commons, Pierre Polief, who

0:19:10.280 --> 0:19:14.480
<v Speaker 2>has an extraordinary story. He's from the Midwest of Canada,

0:19:15.040 --> 0:19:18.840
<v Speaker 2>very poor, difficult childhood. This is enormously in his favor,

0:19:19.560 --> 0:19:23.040
<v Speaker 2>but he's the downside, and this is a feature of

0:19:23.119 --> 0:19:27.479
<v Speaker 2>British politics and other politics. He's never done anything other

0:19:27.560 --> 0:19:31.600
<v Speaker 2>than politics. He's been a staffer since the early twenties.

0:19:31.640 --> 0:19:35.639
<v Speaker 2>He's learned and attack dog style of politics, taken straight

0:19:35.680 --> 0:19:39.080
<v Speaker 2>from the US Republican Party. And when people say he's

0:19:39.080 --> 0:19:43.320
<v Speaker 2>a small version of Trump, I think he's adopted the

0:19:43.560 --> 0:19:48.520
<v Speaker 2>entire style of American politics, and it's disturbing that's finding

0:19:48.560 --> 0:19:52.359
<v Speaker 2>an audience in Canada. But because Canada walks around saying

0:19:52.359 --> 0:19:56.760
<v Speaker 2>we're a nicer, kinder America, and our national identity survives

0:19:56.800 --> 0:20:00.359
<v Speaker 2>on invidious comparison with our awful neighbors to this south,

0:20:00.680 --> 0:20:06.359
<v Speaker 2>whom we frantically envy but simultaneously despise. But I think

0:20:06.359 --> 0:20:11.000
<v Speaker 2>we're gonna get possibly a version of Canadian version of

0:20:11.040 --> 0:20:15.520
<v Speaker 2>Trump in twenty twenty five, and that I think is

0:20:15.520 --> 0:20:18.720
<v Speaker 2>not good for the country. Because the fact about Canada

0:20:19.440 --> 0:20:25.280
<v Speaker 2>is that it is this gigantic democracy on tiny population,

0:20:25.440 --> 0:20:30.600
<v Speaker 2>on a huge landscape. We're so spread out from Atlantic

0:20:30.680 --> 0:20:34.160
<v Speaker 2>to Pacific to Arctic that the job of a prime

0:20:34.160 --> 0:20:39.639
<v Speaker 2>minister is basically one thing, keep the show on the road.

0:20:39.760 --> 0:20:42.840
<v Speaker 2>And you can't keep the show on the road if

0:20:42.880 --> 0:20:45.560
<v Speaker 2>you run one section of the country against the other,

0:20:46.000 --> 0:20:48.920
<v Speaker 2>one group of Canadians against the other. Unity is the

0:20:48.920 --> 0:20:51.600
<v Speaker 2>only thing a Canadian prime minister has to do. And

0:20:51.640 --> 0:20:54.240
<v Speaker 2>I fear that Pierre Poliev has forgotten that.

0:20:54.560 --> 0:20:59.840
<v Speaker 1>Because Polief's major proposal is axe attacks, which is, get

0:21:00.160 --> 0:21:03.120
<v Speaker 1>did this forcecoming increase in carbon tax? Do you think

0:21:03.160 --> 0:21:05.440
<v Speaker 1>that's putting one bit of the population against another.

0:21:06.119 --> 0:21:10.360
<v Speaker 2>Well, he's figured out something that is a real issue

0:21:10.440 --> 0:21:15.560
<v Speaker 2>in liberal democratic politics everywhere, which is that climate change

0:21:15.600 --> 0:21:22.600
<v Speaker 2>politics is not religion, it's politics. It's highly divisive, and

0:21:22.720 --> 0:21:27.359
<v Speaker 2>at a time of rising inflationary pressures on people's household

0:21:27.359 --> 0:21:31.840
<v Speaker 2>incomes the prospect of spending money on a carbon levee

0:21:31.920 --> 0:21:36.640
<v Speaker 2>on your gasoline is extremely unpopular, and so he's seized

0:21:36.680 --> 0:21:40.160
<v Speaker 2>on that and hopes to ride his way to power.

0:21:41.080 --> 0:21:44.960
<v Speaker 2>But it's symptomatic of a wider problem across liberal democracies

0:21:45.080 --> 0:21:48.359
<v Speaker 2>is that climate change policies are becoming more and more

0:21:48.440 --> 0:21:52.480
<v Speaker 2>and more unpopular, and so a liberal politics that cares

0:21:52.520 --> 0:21:56.560
<v Speaker 2>about climate has got to stick with its convictions. And

0:21:57.440 --> 0:22:01.400
<v Speaker 2>you know, Trudeau has sacrificed some of his legitimacy by

0:22:01.520 --> 0:22:05.960
<v Speaker 2>warbbling on carbon tax issues at a time when I

0:22:06.000 --> 0:22:07.280
<v Speaker 2>think we need to double down.

0:22:08.040 --> 0:22:11.760
<v Speaker 3>You've been very pessimistic about liberal democracy during this talk,

0:22:12.000 --> 0:22:14.920
<v Speaker 3>which I resent a bit normally my job when you've

0:22:16.119 --> 0:22:19.360
<v Speaker 3>speeds the mantle. But I wonder if there's anything sort

0:22:19.359 --> 0:22:22.840
<v Speaker 3>of positive that we can think about over the last

0:22:23.960 --> 0:22:27.000
<v Speaker 3>year or so, and whether there is a chance that

0:22:27.040 --> 0:22:29.600
<v Speaker 3>we may be seeing that sort of the end of Trump,

0:22:30.480 --> 0:22:32.879
<v Speaker 3>you know, in the next in the coming election, doesn't

0:22:32.880 --> 0:22:36.199
<v Speaker 3>seem to be the leader in this election. Rate Is

0:22:36.200 --> 0:22:37.800
<v Speaker 3>there any good news that you can see in the

0:22:37.840 --> 0:22:39.119
<v Speaker 3>past and potentially in the future.

0:22:39.400 --> 0:22:49.720
<v Speaker 2>Boy, I'm I'm struggling a bit. Yes, I think liberal

0:22:49.800 --> 0:22:57.080
<v Speaker 2>democracy is having a very difficult time at the theoretical level.

0:22:57.320 --> 0:22:59.879
<v Speaker 2>And that's not the right way to answer the question,

0:23:00.080 --> 0:23:02.560
<v Speaker 2>I know, but let me go there. The reason we

0:23:02.600 --> 0:23:05.560
<v Speaker 2>should care about liberal democracy, in my view, is that

0:23:05.640 --> 0:23:11.720
<v Speaker 2>it's power checking power to keep the people free. One

0:23:11.760 --> 0:23:14.280
<v Speaker 2>of the things that I think has got lost is

0:23:14.320 --> 0:23:17.359
<v Speaker 2>we have a liberal democracy in which we have an

0:23:17.520 --> 0:23:23.160
<v Speaker 2>ever more overpowering state that is ever less competent, so

0:23:23.240 --> 0:23:27.879
<v Speaker 2>it fills the gap between its power and its actual

0:23:28.320 --> 0:23:32.360
<v Speaker 2>competence with lecturing the public, and the public is more

0:23:32.400 --> 0:23:36.520
<v Speaker 2>and more impatient with this, when in fact we need

0:23:36.640 --> 0:23:40.600
<v Speaker 2>to deliver a liberal politics that really says we care

0:23:40.600 --> 0:23:45.480
<v Speaker 2>about your freedom. I don't mean the thatcheri freedom. I

0:23:45.560 --> 0:23:49.560
<v Speaker 2>mean the freedom that is sustained by just good, decent

0:23:49.720 --> 0:23:53.359
<v Speaker 2>public goods that we all share. But if you don't

0:23:53.359 --> 0:23:56.560
<v Speaker 2>have hospitals that care for your mom and dad, if

0:23:56.600 --> 0:23:59.600
<v Speaker 2>you don't have schools that educate the kids, if the

0:23:59.680 --> 0:24:04.400
<v Speaker 2>real way is always late, the liberal democratic vision of

0:24:04.880 --> 0:24:09.240
<v Speaker 2>freedom sustained by public goods just begins to collapse. And

0:24:09.840 --> 0:24:14.120
<v Speaker 2>my own view is that it does require a very

0:24:14.280 --> 0:24:18.320
<v Speaker 2>solid tax space, and that tax space and then is

0:24:18.359 --> 0:24:24.640
<v Speaker 2>being eroded by accountants to super rich people who basically

0:24:24.840 --> 0:24:28.399
<v Speaker 2>game the system and drain the treasury the resources we

0:24:28.520 --> 0:24:32.320
<v Speaker 2>need to sustain public goods for all. And then we

0:24:32.440 --> 0:24:35.600
<v Speaker 2>have to say to middle and upper middle class people, folks,

0:24:35.840 --> 0:24:38.480
<v Speaker 2>if you want a society, if you want a place

0:24:38.480 --> 0:24:41.680
<v Speaker 2>that holds together as a place you want your kids

0:24:41.720 --> 0:24:43.440
<v Speaker 2>to grow up, and you got to pay for it.

0:24:44.760 --> 0:24:48.040
<v Speaker 2>And most liberal politicians, I include myself, are very reluctant

0:24:48.040 --> 0:24:49.840
<v Speaker 2>to say, if you want public goods, you got to

0:24:49.840 --> 0:24:52.159
<v Speaker 2>pay for But this is what I think we have

0:24:52.240 --> 0:24:52.679
<v Speaker 2>to go to.

0:24:53.359 --> 0:24:55.199
<v Speaker 3>We have a labor government here that is trying to

0:24:55.200 --> 0:24:58.920
<v Speaker 3>do exactly what you're saying. But partly because they've handled

0:24:58.920 --> 0:25:01.840
<v Speaker 3>it very badly, taking a lot of phoebees and all

0:25:01.880 --> 0:25:05.640
<v Speaker 3>sorts of weird things, they're not getting the message you costs.

0:25:05.640 --> 0:25:08.000
<v Speaker 3>But also because it's difficult, It takes a long time,

0:25:08.400 --> 0:25:10.680
<v Speaker 3>and democracies are impatient places.

0:25:11.280 --> 0:25:17.080
<v Speaker 2>I wish kir Starmer could listen to Franklin Delano Roosevelt's

0:25:17.119 --> 0:25:20.480
<v Speaker 2>speeches again, because the thing that old Franklin got right

0:25:20.680 --> 0:25:25.720
<v Speaker 2>is whenever it's really tough, you can't spend the whole

0:25:25.840 --> 0:25:30.919
<v Speaker 2>time blaming Herbert Hoover. You can't keep saying there is

0:25:31.000 --> 0:25:34.960
<v Speaker 2>more darkness before the dawn. You have to say there

0:25:35.040 --> 0:25:38.280
<v Speaker 2>is nothing to fear, but fear itself will get through this.

0:25:39.000 --> 0:25:42.720
<v Speaker 2>You know, the thing that he got better than any

0:25:42.800 --> 0:25:48.240
<v Speaker 2>liberal democratic politician of the century, last century or this one,

0:25:48.560 --> 0:25:52.480
<v Speaker 2>is here was a guy who couldn't walk, who made

0:25:52.560 --> 0:25:57.600
<v Speaker 2>people believe in hope. It's just continually inspiring to me.

0:25:58.000 --> 0:26:00.840
<v Speaker 2>And somehow Kure Starmer, who I think is a good politician,

0:26:01.040 --> 0:26:05.320
<v Speaker 2>serious guy, has overdone the grimness so much that he's

0:26:05.359 --> 0:26:11.760
<v Speaker 2>forgotten that key function of liberal democratic politics is just

0:26:11.800 --> 0:26:15.360
<v Speaker 2>to say, there is light at the end of this tunnel,

0:26:15.400 --> 0:26:18.959
<v Speaker 2>and I am going to get you there and you know,

0:26:19.080 --> 0:26:21.959
<v Speaker 2>hang on. I think Tony Blair had a bit of

0:26:21.960 --> 0:26:25.680
<v Speaker 2>that quality, but we badly need somebody who has that

0:26:25.840 --> 0:26:30.160
<v Speaker 2>magical quality to inspire hope and belief and confidence.

0:26:30.800 --> 0:26:34.760
<v Speaker 1>I mean, you're gloomy about the prospects in abstract the

0:26:34.800 --> 0:26:37.480
<v Speaker 1>political theory of liberal democracy. Is there a country you've

0:26:37.480 --> 0:26:39.320
<v Speaker 1>talked about Austria where you live now, Is there a

0:26:39.320 --> 0:26:41.119
<v Speaker 1>country that you think is doing it well and we

0:26:41.119 --> 0:26:42.440
<v Speaker 1>should be studying more?

0:26:44.400 --> 0:26:44.720
<v Speaker 3>Please?

0:26:46.240 --> 0:26:52.879
<v Speaker 2>Well? Well, well, Austria is a pretty odd example because

0:26:52.960 --> 0:26:55.679
<v Speaker 2>it's got a center right government. It could have a

0:26:55.840 --> 0:26:58.119
<v Speaker 2>far right government at the end of this month. So

0:26:58.720 --> 0:27:02.040
<v Speaker 2>people listening to me, see what has happened to Ignatiev.

0:27:02.080 --> 0:27:06.120
<v Speaker 2>He's lost he's lost his mind there in Vienna. Can

0:27:06.200 --> 0:27:08.119
<v Speaker 2>I think of it? Can I think of a place

0:27:08.200 --> 0:27:12.120
<v Speaker 2>that's getting it right? It's a little difficult I mean

0:27:12.520 --> 0:27:19.920
<v Speaker 2>the usual suspects come in here, Finland, Sweden, and Norway.

0:27:20.040 --> 0:27:22.399
<v Speaker 2>I think I'm pretty fond of Finland at the moment,

0:27:22.560 --> 0:27:26.440
<v Speaker 2>partly because it's doing such a good job on two things.

0:27:26.880 --> 0:27:30.920
<v Speaker 2>It's facing up to the Russians, and b it's investing

0:27:31.040 --> 0:27:36.000
<v Speaker 2>hugely in education. And I think that's as close as

0:27:36.040 --> 0:27:39.560
<v Speaker 2>I can think of a society that's succeeding. But all

0:27:39.600 --> 0:27:42.880
<v Speaker 2>of these places, let's also be the reason people are

0:27:42.880 --> 0:27:46.600
<v Speaker 2>irritated by the Scandinavian example is if you've had, you know,

0:27:46.920 --> 0:27:51.560
<v Speaker 2>two hundred years of peace, you know everything's easy. It's

0:27:51.680 --> 0:27:55.680
<v Speaker 2>much tougher, and it's much easier if you're small. That's

0:27:55.720 --> 0:28:00.400
<v Speaker 2>one of the disturbing implications the good countries are all.

0:28:00.640 --> 0:28:06.679
<v Speaker 2>The bigger you get, the more difficult managing these societies becomes.

0:28:07.280 --> 0:28:12.679
<v Speaker 2>And so that's a disturbing implication. Small really is beautiful

0:28:12.800 --> 0:28:14.040
<v Speaker 2>in democratic terms.

0:28:14.640 --> 0:28:18.480
<v Speaker 3>Do you think that the corporate world could be doing

0:28:18.560 --> 0:28:21.200
<v Speaker 3>more to solve these liberal democracy.

0:28:21.320 --> 0:28:23.920
<v Speaker 2>Well, I certainly think they could be paying more tax.

0:28:24.720 --> 0:28:28.439
<v Speaker 2>And I'm please understand me, I'm a liberal. So I

0:28:28.480 --> 0:28:31.760
<v Speaker 2>believe in capitalism, I believe in markets, I believe in competition,

0:28:31.800 --> 0:28:36.959
<v Speaker 2>I believe in innovation. But the problem with capitalism is

0:28:37.000 --> 0:28:40.720
<v Speaker 2>we have so little of it. We have so much oligopoly,

0:28:40.920 --> 0:28:44.880
<v Speaker 2>we have so much market dominance, and they keep telling

0:28:44.960 --> 0:28:48.680
<v Speaker 2>us that market dominance is necessary for innovation and growth.

0:28:48.720 --> 0:28:52.880
<v Speaker 2>But I think that's been one of the biggest developments

0:28:52.920 --> 0:28:57.040
<v Speaker 2>of my lifetime has been the steady consolidation of economic power.

0:28:57.600 --> 0:29:03.240
<v Speaker 2>And then a further more disturbing implication again that frankly,

0:29:03.400 --> 0:29:07.360
<v Speaker 2>socialists and social democrats have been quicker to see than liberals,

0:29:07.360 --> 0:29:11.120
<v Speaker 2>which is the stacking of power. Economic power gives you

0:29:11.200 --> 0:29:15.440
<v Speaker 2>political power. Political power gives you economic power, cultural power,

0:29:15.560 --> 0:29:20.400
<v Speaker 2>social power stacked on top. The very idea of liberal

0:29:20.480 --> 0:29:24.680
<v Speaker 2>democracy is that power is unstacked. That is, if you

0:29:24.720 --> 0:29:27.680
<v Speaker 2>have economic power, it doesn't translate to political power. If

0:29:27.720 --> 0:29:30.400
<v Speaker 2>you have political power, it doesn't make you rich. If

0:29:30.440 --> 0:29:34.040
<v Speaker 2>you have cultural or social power, it doesn't translate into

0:29:34.080 --> 0:29:38.520
<v Speaker 2>economic or political The unstacking of power is a healthy society.

0:29:38.840 --> 0:29:41.760
<v Speaker 2>And we have an unhealthy society because power is stacked

0:29:41.800 --> 0:29:45.000
<v Speaker 2>in a kind of funnel in which everything appears now

0:29:45.040 --> 0:29:48.400
<v Speaker 2>to depend on access to political power. The guys in

0:29:48.520 --> 0:29:51.800
<v Speaker 2>Silicon Valley, the guys at Google, the guys at Microsoft,

0:29:51.800 --> 0:29:56.720
<v Speaker 2>are tremendously dependent on what could be called regulatory capture.

0:29:56.760 --> 0:30:00.000
<v Speaker 2>They've got the state by the throat, and this is

0:30:01.120 --> 0:30:05.240
<v Speaker 2>an enormous, an enormous challenge. And having said that, we

0:30:05.360 --> 0:30:09.800
<v Speaker 2>have to have a liberalism that understands we want innovation,

0:30:09.920 --> 0:30:14.280
<v Speaker 2>we want entrepreneurship, we want people sitting in a garage

0:30:14.400 --> 0:30:18.520
<v Speaker 2>making the next big thing. But God almighty, they've got

0:30:18.560 --> 0:30:19.320
<v Speaker 2>to pay their way.

0:30:20.480 --> 0:30:23.120
<v Speaker 1>I think that's probably as good a big thought as

0:30:23.120 --> 0:30:26.360
<v Speaker 1>any place to leave it. Thank you very much, Michael,

0:30:26.560 --> 0:30:30.400
<v Speaker 1>And that was brilliant. Thanks for listening to this week's

0:30:30.440 --> 0:30:33.720
<v Speaker 1>voton Nomics from Bloomberg. This episode was hosted by me

0:30:33.880 --> 0:30:38.120
<v Speaker 1>alegra Stratton with Adrian Waldridge. It was produced by Someasadi,

0:30:38.520 --> 0:30:42.760
<v Speaker 1>production support from Chris Martlu and Isabella Ward. Sound designed

0:30:42.800 --> 0:30:47.360
<v Speaker 1>by Blake Maples. Brendan Francis Newnham is our executive producer.

0:30:47.800 --> 0:30:51.080
<v Speaker 1>Sage Bowman is Head of Podcasts and Special thanks to

0:30:51.120 --> 0:30:55.600
<v Speaker 1>Michael Ignatief. Please subscribe, rate, and review wherever you listen

0:30:55.640 --> 0:30:56.360
<v Speaker 1>to podcasts.