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John McDonnell: unreconstructed on the left, but with allies on the right John McDonnell: unreconstructed on the left, but with allies on the right
(about 1 hour later)
John McDonnell, the new shadow chancellor who wants to crank up taxes, nationalise the banks and raid the assets of Britain’s super-rich, has a little secret. He likes Zac Goldsmith.John McDonnell, the new shadow chancellor who wants to crank up taxes, nationalise the banks and raid the assets of Britain’s super-rich, has a little secret. He likes Zac Goldsmith.
McDonnell, whose early economic reading included Karl Marx’s Das Kapital and Ralph Miliband’s Socialism in Hard Times, has been making common cause with the multi-millionaire son of the billionaire financier James Goldsmith to oppose a third runway at Heathrow airport. At a recent meeting when a group of direct action activists seemed to take against the Conservative MP “as a rightwing rich boy playing at politics” McDonnell sprang to his defence.McDonnell, whose early economic reading included Karl Marx’s Das Kapital and Ralph Miliband’s Socialism in Hard Times, has been making common cause with the multi-millionaire son of the billionaire financier James Goldsmith to oppose a third runway at Heathrow airport. At a recent meeting when a group of direct action activists seemed to take against the Conservative MP “as a rightwing rich boy playing at politics” McDonnell sprang to his defence.
“John was having none of it,” recalled John Stewart, an anti-expansion campaigner who has known McDonnell for 30 years. “He said Zac was committed and he liked Zac personally.”“John was having none of it,” recalled John Stewart, an anti-expansion campaigner who has known McDonnell for 30 years. “He said Zac was committed and he liked Zac personally.”
Regardless of political or class differences, the two men had bonded as “instinctive campaigners”, Stewart said.Regardless of political or class differences, the two men had bonded as “instinctive campaigners”, Stewart said.
“John takes all the left-right politics out of it. Some of the rightwing press would be astonished by that.”“John takes all the left-right politics out of it. Some of the rightwing press would be astonished by that.”
McDonnell’s years as a diligent constituency MP campaigning on issues such as Heathrow are now little more than a footnote. It is his hard-left credentials that fascinate. The Daily Telegraph headlined one article on Monday “Corbyn has just appointed a nutjob as shadow Chancellor”. They apologised and changed it, but only to “man from cloud cuckoo land”.McDonnell’s years as a diligent constituency MP campaigning on issues such as Heathrow are now little more than a footnote. It is his hard-left credentials that fascinate. The Daily Telegraph headlined one article on Monday “Corbyn has just appointed a nutjob as shadow Chancellor”. They apologised and changed it, but only to “man from cloud cuckoo land”.
Admirers say McDonnell, 64, is a serious thinker, but his years of political isolation on the far left fringe of New Labour have seen him adopt some of the traits of what became known in the 1980s as the “loony left”. Ahead of the general election he talked about lynching Tory MPs and removing “the stain of inhumanity”. In 2010, he said he would like to go back to the 1980s and assassinate Thatcher.Admirers say McDonnell, 64, is a serious thinker, but his years of political isolation on the far left fringe of New Labour have seen him adopt some of the traits of what became known in the 1980s as the “loony left”. Ahead of the general election he talked about lynching Tory MPs and removing “the stain of inhumanity”. In 2010, he said he would like to go back to the 1980s and assassinate Thatcher.
It is the preaching to the choir language of fringe meetings. He branded Nigel Farage a tosser and joked of “a recurring dream about garotting Danny Alexander”. More troubling for many is that he is on the record as declaring that peace in Northern Ireland “is due to the action of the IRA”.It is the preaching to the choir language of fringe meetings. He branded Nigel Farage a tosser and joked of “a recurring dream about garotting Danny Alexander”. More troubling for many is that he is on the record as declaring that peace in Northern Ireland “is due to the action of the IRA”.
Leadership ambitionLeadership ambition
McDonnell tried to make a leadership bid of his own in 2007, when he failed to gather support to run against Gordon Brown, and he ran against Miliband in 2010. Health concerns meant that on this occasion he stood aside to allow Corbyn to run.McDonnell tried to make a leadership bid of his own in 2007, when he failed to gather support to run against Gordon Brown, and he ran against Miliband in 2010. Health concerns meant that on this occasion he stood aside to allow Corbyn to run.
His economics are radical left but not Marxist, those who know him say. A manifesto he wrote in 2012 for the first 100 days of a Labour government included a tax raid on the wealth of the richest 10%, 60% income tax above £100,000,nationalising banks and railways, ending the Bank of England’s control of interest rates, banning companies from paying more than 20 times the lowest wage and scrapping tuition fees.His economics are radical left but not Marxist, those who know him say. A manifesto he wrote in 2012 for the first 100 days of a Labour government included a tax raid on the wealth of the richest 10%, 60% income tax above £100,000,nationalising banks and railways, ending the Bank of England’s control of interest rates, banning companies from paying more than 20 times the lowest wage and scrapping tuition fees.
“He is not a smoothie and he gets stuck in,” said Ian Gibson, a former MP who was a colleague in the Socialist Campaign Group of Labour MPs that McDonnell chairs. “He doesn’t have the drawing room flattery and charm that often seems to be a necessary evil in the job... John is just John and says it as it is.”“He is not a smoothie and he gets stuck in,” said Ian Gibson, a former MP who was a colleague in the Socialist Campaign Group of Labour MPs that McDonnell chairs. “He doesn’t have the drawing room flattery and charm that often seems to be a necessary evil in the job... John is just John and says it as it is.”
“He’s a class battle man,” said another leftwing Labour MP who spoke on condition of anonymity. “He is unrelenting and everything is seen through the prism of leftist politics. He has a far more intolerant and fixed view of the boss class, and that includes the financial classes, than a lot of us do. There is an ascetism about him.”“He’s a class battle man,” said another leftwing Labour MP who spoke on condition of anonymity. “He is unrelenting and everything is seen through the prism of leftist politics. He has a far more intolerant and fixed view of the boss class, and that includes the financial classes, than a lot of us do. There is an ascetism about him.”
His thinking on economics, however, is not quite as rigid as that might suggest. McDonnell told the Guardian his most recent reading includes Andrew Fisher’s The Failed Experiment, which outlines a plan for rebuilding Britain’s economy after the banking crisis, Paul Mason’s PostCapitalism and Marianna Mazzucato’s Entrepreneurial State, an influential tome about how the state could make up for the absence of private investment in everything from factories to research.His thinking on economics, however, is not quite as rigid as that might suggest. McDonnell told the Guardian his most recent reading includes Andrew Fisher’s The Failed Experiment, which outlines a plan for rebuilding Britain’s economy after the banking crisis, Paul Mason’s PostCapitalism and Marianna Mazzucato’s Entrepreneurial State, an influential tome about how the state could make up for the absence of private investment in everything from factories to research.
McDonnell was born in Liverpool to a docker-turned-bus driver and went to school in Great Yarmouth. His father was a union branch secretary and his mother worked at British Home Stores. He left school at 17 and worked in factories in Lancashire before studying politics, sociology and history at Brunel University in west London as mature student.McDonnell was born in Liverpool to a docker-turned-bus driver and went to school in Great Yarmouth. His father was a union branch secretary and his mother worked at British Home Stores. He left school at 17 and worked in factories in Lancashire before studying politics, sociology and history at Brunel University in west London as mature student.
Early jobs included posts at the National Union of Mineworkers and the TUC. During the evenings he completed a masters in politics at Birkbeck. He learned economic policy on both courses.Early jobs included posts at the National Union of Mineworkers and the TUC. During the evenings he completed a masters in politics at Birkbeck. He learned economic policy on both courses.
“Brunel specialised in using ex and current civil servants as lecturers and tutors,” he told the Guardian. “Hence my reputation as a hard-nosed bureaucrat.”“Brunel specialised in using ex and current civil servants as lecturers and tutors,” he told the Guardian. “Hence my reputation as a hard-nosed bureaucrat.”
He married and had two children, Melanie and Rosa, both now in their thirties. He has since remarried and also has a grownup son.He married and had two children, Melanie and Rosa, both now in their thirties. He has since remarried and also has a grownup son.
“Chancellor of the exchequer for London”“Chancellor of the exchequer for London”
He was elected to the Greater London Council aged 29 and in 1982 its leader Ken Livingstone made him chair of finance, a role he has spun this week as “chancellor of the exchequer for London”. His budget was big – £852m – but nowhere near UK government spending today of around £800bn.He was elected to the Greater London Council aged 29 and in 1982 its leader Ken Livingstone made him chair of finance, a role he has spun this week as “chancellor of the exchequer for London”. His budget was big – £852m – but nowhere near UK government spending today of around £800bn.
“He had an absolute grasp for detail and every year he produced a balanced budget, no borrowing,” Livingstone said.“He had an absolute grasp for detail and every year he produced a balanced budget, no borrowing,” Livingstone said.
McDonnell got involved in some of the Livingstone’s wackier adventures at County Hall, including commissioning Ned Sherrin to update Gilbert and Sullivan’s operettas on behalf of ratepayers, and having Livingstone paraglide across the Thames. The pair also had a furious falling out over the use of budget figures for political aims. Margaret Thatcher’s government had announced it would cap council rates and the GLC considered defying the order.McDonnell got involved in some of the Livingstone’s wackier adventures at County Hall, including commissioning Ned Sherrin to update Gilbert and Sullivan’s operettas on behalf of ratepayers, and having Livingstone paraglide across the Thames. The pair also had a furious falling out over the use of budget figures for political aims. Margaret Thatcher’s government had announced it would cap council rates and the GLC considered defying the order.
For months it made a big noise in public about how it would lead to £135m in cuts, based on McDonnell’s figures and as part of what he says was an agreed strategy to oppose rate capping. According to Livingstone’s 1987 autobiography, however, he then discovered other calculations that suggested the authority would in fact be able to increase spending and still cap rates.For months it made a big noise in public about how it would lead to £135m in cuts, based on McDonnell’s figures and as part of what he says was an agreed strategy to oppose rate capping. According to Livingstone’s 1987 autobiography, however, he then discovered other calculations that suggested the authority would in fact be able to increase spending and still cap rates.
Livingstone said he confronted McDonnell. “If these figures are right we’re going to look like the biggest fucking liars since Goebbels,” he said.Livingstone said he confronted McDonnell. “If these figures are right we’re going to look like the biggest fucking liars since Goebbels,” he said.
McDonnell has described Livingstone’s account as “complete fiction” and said the accusation he told anyone to shred figures was laughable. Whatever the details of the situation, the rift between the men has long since healed.McDonnell has described Livingstone’s account as “complete fiction” and said the accusation he told anyone to shred figures was laughable. Whatever the details of the situation, the rift between the men has long since healed.
McDonnell has been a consistently rebellious parliamentarian as part of the Bennite Campaign group. He has voted against the majority in his own party 478 times on everything from high-speed rail to student finance. Irish republicanism, however, has become his most controversial issue.McDonnell has been a consistently rebellious parliamentarian as part of the Bennite Campaign group. He has voted against the majority in his own party 478 times on everything from high-speed rail to student finance. Irish republicanism, however, has become his most controversial issue.
In May 2003 at a gathering to commemorate the IRA hunger striker Bobby Sands, McDonnell said: “It was the bombs and bullets and sacrifice made by the likes of Bobby Sands that brought Britain to the negotiating table. The peace we have now is due to the action of the IRA.”In May 2003 at a gathering to commemorate the IRA hunger striker Bobby Sands, McDonnell said: “It was the bombs and bullets and sacrifice made by the likes of Bobby Sands that brought Britain to the negotiating table. The peace we have now is due to the action of the IRA.”
On Tuesday, the Democratic Unionist party MP Jeffrey Donaldson said IRA victims were very worried at McDonnell’s ascent. “Many of the victims I have spoken to in the last 48 hours have been appalled that this man is now holding a very senior position in the shadow cabinet and shows no remorse for the comments he has made in the past.”On Tuesday, the Democratic Unionist party MP Jeffrey Donaldson said IRA victims were very worried at McDonnell’s ascent. “Many of the victims I have spoken to in the last 48 hours have been appalled that this man is now holding a very senior position in the shadow cabinet and shows no remorse for the comments he has made in the past.”
McDonnell, who hardly drinks and doesn’t smoke, suffered a heart attack in 2013 and was forced to take time off. His new job is hardly likely to help his blood pressure.McDonnell, who hardly drinks and doesn’t smoke, suffered a heart attack in 2013 and was forced to take time off. His new job is hardly likely to help his blood pressure.
What is McDonnellnomics?
Chris Leslie, Labour’s short-lived post-election shadow chancellor, said the party should pitch its appeal to “the Which? magazine strata of society” made up of cost-conscious middle-class consumers and buy-to-let landlords. His successor, the veteran leftwing campaigner John McDonnell, is more likely to be found reading Karl Marx.
Marx’s Capital, with its prognosis – as yet unrealised almost 150 years on – that capitalism’s inherent contradictions and periodic crises would eventually bring about its collapse, is the first book O’Donnell recommends reading to understand the thinking behind Labour’s new economic policy.
More contemporary thinkers cited by the shadow chancellor include Mariana Mazzucato, of the University of Sussex, who has argued about the need for more creative state involvement in business and innovation. Paul Mason, Channel 4’s economics editor and a Guardian columnist, whose book PostCapitalism explores the impact of rapid technological change on old economic models, is also an influence; as is Andrew Fisher, a trade union researcher who advocates wholesale renationalisation of swaths of the economy.
McDonnell’s ideological clarity springs from precisely the opposite analysis to Leslie’s contention that Labour lost the general election because it tacked too far to the left under Ed Miliband, frightening centrist voters by appearing too ready to seize control of chunks of the private sector.
Instead, Jeremy Corbyn and his supporters believe Miliband was too cautious. They hope their message will find a ready hearing in an economy where the booming housing market has created a deep schism between the haves and the have nots; boardroom pay has rocketed since the recession while average wages have flatlined; and City traders are back to their bad old bonus-winning ways.
So when it comes to concrete policy, McDonnell’s approach is likely to beMilibandism liberated from the New Labour dread of alarming Britain’s boardrooms.
Widespread renationalisation is back on the agenda; so is a much more progressive tax system, including exploring the potential for a wealth tax, as recommended by the French economist Thomas Piketty, and the repeal of George Osborne’s planned corporation tax cuts.
McDonnell would outbid the chancellor’s “national living wage”, aiming at £10 instead of the £9 or so that Osborne has said the minimum wage will reach by 2020; and he will be full-throated in his opposition to the chancellor’s £12bn of welfare cuts, instead of running scared of being branded the benefit scroungers’ friend.
One New Labour shibboleth that McDonnell appears not to be prepared to ditch, though, is the need to echo the Conservatives’ determination to keep a tight rein on the public finances.
Richard Murphy, the tax justice campaigner regarded as the inspiration for much of the “Corbynomics” agenda, in particular the notion of “people’s QE”, says he is disappointed that McDonnell has insisted that he is not a “deficit denier” – a phrase repeated by Corbyn in his speech to the TUC yesterday.
“If anything, I’m afraid that at the moment he’s being too cautious. I certainly would not be saying there’s a need to balance the budget,” Murphy says.
Yet as he takes over the job occupied by some of Labour’s towering figures, including John Smith and Gordon Brown, McDonnell may ultimately believe he is at the vanguard of a revolution.
His hero, Marx, believed that over time, the growing concentration of power and wealth in the capitalist economy would intensify the “misery, oppression, slavery, degradation, exploitation” of the workforce, who would eventually revolt. At that point, as Marx put it: “The knell of capitalist private property sounds. The expropriators are expropriated.” Perhaps, finally, Labour’s new shadow chancellor believes that time has come.
Heather Stewart