We must completely support the civil resistance throughout the Arab world. Corrupt secular nationalist rulers are as bad as corrupt undemocratic religious rulers. We must support the people all over the Muslim world with friendship and solidarity in support of democracy. We should be their partner in building mass popular trade unions to prevent them from exploitation in the market storm they are moving towards in their modernisation plans. Who on the left in Italy is working with the resistance to Gaddafi? I don’t know the answer to that but my suspicion is that there are not many. Again, you are on the wrong side of history on that. Support for democracy, for a democratic organised society, for resistance to capitalist domination and state despotism. That is the Blue Labour position. It goes without saying that China is the worst of all worlds, it combines market exploitation with state dictatorship. Blue Labour places unreserved solidity and support to the free democratic trade unions in China, and that is an important struggle for the Labour Movement all over the world.

We've got to reinterrogate our relationship with the EU on the movement of labour. The EU has gone from being a sort of pig farm subsidised bloc to the free movement of labour and capital. Britain is not an outpost of the UN. We have to put the people in this country first.

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Labour should be robust in supporting free and democratic trade unions throughout Europe, in championing a balance of interests in corporate governance and strong civic self-government with a deep partnership between universities, cities and firms. The question is whether being part of the EU hinders this. Britain is already outside the Eurozone and the Schengen agreement. It is gratuitous to remain part of a political union that is so hostile to diversity and democracy and so disposed to the consolidation of big capital that it has become a remorseless machine for the liberalisation of trade and the disintegration of society, in which the demand for liquidity has dissolved solidarity.

Capital has just become completely disconnected from the people. Labour was born in the world to resist the domination of capital. That’s our thing. So we say that five percent of the bailout should be used to recapitalise local banks. It’s our money anyway. Those local banks should only lend in the area that they’re in. Germany’s a very successful, a very, very successful example of how this can work.

The nadir came out in Gordon Brown’s ‘that bigoted woman’ moment when I think what we saw was where a completely normal person, a Labour supporter too, expresses something about what she could see in her life about there being a lot of immigrants and Brown dismissed her as a bigot. Well, I saw that as an absolute manifestation of a self-righteous, self-regarding, elitism in Labour that really despises the concerns of working people. Labour had reached a situation under Brown where most of the people in the party hated one another and they hated people outside the party too.

The last thing I watched on telly with my mother, she died in very late 2008 in the middle of the financial crash, was Gordon Brown saying that it was the destiny of the Labour movement to save the global banking system. And that statement –‘the destiny of the Labour movement to save the global banking system’… I looked to my mum and the last movement she made, really, was to shake her head. You know, it may be the fate of the Labour movement but it can’t be its destiny, that’s just crazy. She just looked bewildered by that.

We believe that capitalism, and unfettered capitalism poses a threat to human existence through the commodification of the person and nature. And we believe in defending people and nature through democratic association, and confronting and constraining the domination of capital through building a balance of interests in corporate governance and public sector. We take on, we’ve taken on the banks in the city of London. That’s who we are.

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The challenge for Labour is that there’s huge support for working class, from mining communities, from northern working class communities for UKIP, which wouldn’t be the case if they were a straightforward Thatcherite party. So an ability to engage with the rage and dispossession people feel is absolutely necessary for constructive politics. And how do you build a common good between locals and immigrants? How do you build a common good between north and south, between the small towns and cities? We’re not thinking of the levels of abandonment that people feel, and UKIP express that.

The big thing that happened in the early to mid-90s was the last big discussion about political economy. Roughly speaking we went for endogenous growth, for flexible labour markets and the financial sector, and that was considered modern. The book that I wrote at that time was arguing that the German system – which had worker representation on boards, very strong vocational training, regional banks, very strong federal forms of democratic government – was actually better suited to globalisation because it preserved knowledge, trust, institutions, skills … Now, I think the results of our experiment are in and we really got it wrong.

Neither economic liberalism nor Keynesianism can conceptualise vocation, virtue or labour value as economic categories, neither can give a primary economic value to intermediate institutions, whether they be the corporate governance of a firm, vocational colleges, regional banks or supporter owned football clubs, they can only conceptualise the state or the market and all forms of particular association are viewed as at best “cultural” or at worst “obstructive”. They can give no conceptual status to place, to the specificity of place and the necessity of institutions in generating virtue and value within it.

The list of characteristics of the good life suggested by Lord Skidelsky include neither work nor politics and that indicates that there is a problem with understanding power. Part of a good life is not to be dominated by the rich and the powerful and that can only be done through asserting the necessity of recognising labour as a value so that the people who do it are treated humanely and that involves the other thing that defines human beings, they can get together and change things through the power of association. Politics is part of the good life too although I can tell you it doesn’t always feel that way.

On the face of it, these look like bad times for Labour and for Ed Miliband's leadership. There seems to be no strategy, no narrative and little energy. Old faces from the Brown era still dominate the shadow cabinet and they seem stuck in defending Labour's record in all the wrong ways: we didn't spend too much money, we'll cut less fast and less far, but we can't tell you how.

I realised that over a few years through these London Citizens campaigns we’d developed a more radical political economy than the Labour Party. For me, it was catch up, catch up, catch up. I was always a Labour, secular, left-winger and this was all new. One of the big lessons for me was which people would turn up. If the mosque said 50 people, the Catholic church says 50 people, the local black church says 50 people, they turn up. When the trade unions said 50 people, no-one turns up. So suddenly the crisis of secular institutions and their reproduction came to me.

Labour was different to other European Social Democratic Parties in that it was never aggressively secular and was not divided by confessional fissures. Its founding act, the Dock Strike of 1889 was brokered by the Salvation Army and Cardinal Manning. It was never a revolutionary party that became more peaceable but was, from the start, committed to extending democracy within the inherited constitution. It also had a base of support among the working class that secured British democracy from Fascism and Communism and that was because of its paradoxical nature, as conservative as it was radical, as patriotic as it was nationalist. The greatest failure of New Labour is that it led rather than resisted the definition of the European Union as a neo-liberal project and did not develop a constructive alternative to the status quo. It seemed incapable of distinguishing between internationalism and globalisation.

And what is going on is that the SPD (Social Democratic Party of Germany) has lost the trust of working class German voters, is overwhelmingly a party of the public sector, social science graduates and ethnic minorities and won barely more than a quarter of the vote. It has moved its concerns from those of the internal governance of the political economy to a political and legal orientation that requires the passing of laws, external regulation and redistribution. It has not seriously defended the internal virtues of its economic system, preferring to stress external factors such a stimulus and taxation. Justice and rights rather than democracy and the good have come to define the position. I am strongly suggesting the party has become liberal rather than socialist and that is the fundamental problem.