Starmer will never be able to change capitalism. (Photo by Anthony Devlin/Getty Images)

A number of people are uncertain about whether the new Labour government is socialist or not, including those in the new Labour government. Keir Starmer called himself a socialist during the campaign, while Rachel Reeves refused the title. As for Tony Blair, even as a social democrat he stayed mostly in the closet, trying to keep the markets sweet by behaving as though he wasnāt one. Other Labour leaders have called themselves socialists to curry favour with their rank and file; but itās generally understood that āsocialistā is code for social democrat, and won’t provoke the displeasure of the Masters of the Universe. Itās fine to be a socialist as long as you arenāt actually one.
Social democracy has ended up as a compassionate form of capitalism. The problem with compassionate capitalism, however, as with seat belts or Save the Children, is that itās hard to find anyone whoās against it. Campaigns for bleeding the workforce dry or shackling them to their benches donāt go down well with the electorate. The father of English liberalism, John Locke, believed that three-year-olds should be put to work in factories, but today this wouldnāt be acceptable, even in Tunbridge Wells. Even Left-wingers would prefer the present system to behave as humanely as possible as long as it is in business. Those ultra-Leftists who abstain from supporting humane reforms because it helps to prop up capitalism were accused by Lenin of being afflicted by an infantile disorder, and most of them would seem to have died out as a result of it. In that sense, the choice between reform and revolution is spurious. In fact, social democracy started life in the late 19th century as a current within the revolutionary socialist movement, agreeing with its aims but arguing that they could be achieved by reformist means.Ā
The other problem with tender-hearted capitalism is that tenderness of heart is bound to be in short supply by the very nature of the system. In the end, human welfare is likely to play second fiddle to the profit motive. And there will be plenty of brutal, barbarous capitalists as well. Social democracy is the faith that capitalism and human well-being can be reconciled; but if it comes to a choice between them, the market generally dictates that you sacrifice well-being to the demands of capital.
The compassionate bit in the phrase ācompassionate capitalismā means that this keeps you awake at night. But it doesnāt mean you donāt do it. āWe put the welfare of our workers/the safety of our passengers/the satisfaction of our customers first.ā No you donāt. Thatās a blatant lie. You put your shareholders first and hope that this proves compatible with the welfare, safety and satisfaction of others. Some of the time it does and some of the time it doesnāt. It depends on economic factors which are for the most part beyond your control. Social democracy is plagued by the paradox that to avert the harshest effects of capitalism, it needs that system to thrive. The question is not whether Starmer is a social democrat, but whether capitalism will allow him to be one by generating that magical entity known as growth. In this respect, being a social democrat is not like being a baptist or a vegan.
A quick definition of a socialist, as opposed to a social democrat, is anyone Starmer throws out of the Labour Party. This isnāt to say that socialists and social democrats donāt share some common ground. Both object to a society in which some people carry Ā£16,000 Hermes Birkin crocodile handbags while others grub in garbage bins. The difference is that socialists think such inequalities are as natural to market societies as tattoos are to David Beckham, while social democrats hope they can be ironed out without too much upheaval. In this, they are at one with the Right, though not in their belief in a modest amount of public ownership, their less indulgent attitude to the well-off and their enthusiasm for the public sector.Ā Ā
Another way of putting the point is to say that Right-wingers believe in chronicles, while Left-wingers believe in narratives. A chronicle is a record which places items side by side without grasping them as interrelated (āThe Queen died, then the King diedā), while a narrative explores causal connections (āThe King died because the Queen diedā). That there are rich folk and also poor folk is a chronicle; that there are rich people because there are poor people, and vice versa (by and large, broadly speaking), is a narrative. Right-wingers tend to believe that there are beggars and billionaires in the same sense that there are diabetics and non-diabetics, rather than in the sense that there are murderers and murderees.Ā
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