What kind of state do we have?

26 06 2009

As we are are trying to work out what our approach should be towards the state and public spending, I would heartily recommend James Heartfield’s new essay on the nature of the modern UK state. In it he examines the way in which the state has  weakened its control over key economic developments by contracting out key aspects of its economic decision-making and responsibilities to consultancies and private companies,often in dubious circumstances.

Yet while the state has contracted out these key public services it has also created a more intrusive system of regulation over society through intervention in public and family life. This is one of the key aspects of the state that many of you objected to in the discussion of public spending we can do without.

James Heartfield’s conclusion is, 

All the time the established boundary between ‘state’ and ‘civil society’, between ‘public goods and private benefits’, is being redrawn, or broken down altogether. What emerges is neither an enhanced private sector, nor coherent state provision, but rather a hybrid, dependent on public finances to survive, and increasingly operating according to a mixture of political, administrative and business models that makes little sense.

 In his essay he looks in detail at some of the ways that state intervention into the banks, the railways and the NHS amongst others has acted as an indirect subsidy to private industry. More analysis along these lines would help us to understand what it is about the modern state that we object to and what we can do without.