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Wednesday, 12 October 2016

Grammar schools are unfair. Principled parents must refuse to encourage them

Louise Tickle in The Guardian


 

‘A gentle challenge will often prompt the mantra that’s endlessly parroted to justify a parent’s principles turning to dust in the lead-up to the 11-plus exam. ‘You have to do the best by your child, don’t you?’’ Photograph: Rex/Shutterstock
  


When my son was six months old, I agreed to move to Gloucestershire. It’s lovely here in the Stroud Valleys – or it is until your child reaches the second half of primary school, and everyday chats about school stuff with friends suddenly start to veer off into shamefaced mumbles about tutoring, and how if Charlie or Clara want to take the 11-plus with their mates, “then who are we to stop them?”

You’re their parents, who make a heap of choices about your children’s lives based on your political beliefs, is my answer. So why crumble now?

As an education journalist who is opposed to selection – because it disproportionately benefits an already vastly advantaged middle-class minority, and actively harms the educational prospects of other, often poorer children – I find negotiating these conversations with people I know painfully fraught. I have not yet found a polite way to tell a friend who allows their child to take the 11-plus that, while I cling to the idea that they are not at heart a shit, they are doing an exceedingly shitty thing.

A gentle challenge will often prompt the mantra that’s endlessly parroted to justify a parent’s principles turning to dust in the lead-up to the 11-plus exam. “You have to do the best by your child, don’t you?” is intoned with a phlegmatic sigh, lips pressed together in wry acknowledgment that the situation isn’t ideal, but life’s a bitch, and one’s own child’s interests – obviously– trump every other consideration. The listener’s agreement is automatically assumed.

No, I increasingly want to yell. Given that their offspring, and pretty much all their friends, are among the luckiest children in the history of humankind, choosing to construct a more divided society via our taxpayer-funded education system that disadvantages other kids – some with unimaginably difficult home lives that make it harder for them to do well at school – is not something I think should be encouraged. But it appears to be viewed as aberrant or just plain weird by many middle-class parents not to grab every possible personal advantage and hug it tight to the family bosom, while still maintaining they want the best for all.

We’re animals. I get it. We’re programmed to chase advantage for our young, even to the detriment of other people’s children. And so while it’s particularly pernicious that some parents pay for months, sometimes years, of tutoring to get their child through an exam that they might well otherwise fail, I know it’s because they are desperate to secure for their child any extra benefit going in a country that is becoming ever more unequal.

But inside, I seethe. Often I do so silently, because with so many parents actively pursuing the advantages that selection confers, confronting them has become deeply socially uncomfortable.It’s incongruent with many people’s view of themselves as good folk who believe in fairness and equality. And facing this paradox head-on in conversation has, in my experience, become something of a taboo: how do you call out friends and stay friends, when you’re accusing them of hurting other people’s children? I try, but the discomfort it prompts is palpable, and defensiveness is rife. The fact that researchers have concluded that there is “no benefit to attending a grammar school for high-attaining pupils” makes the unedifying scrabble even more sad.

It’s the system that stinks, of course, and it has to be fought at the policy level, not by individuals at the school gates. Parents mustn’t set themselves against each other. While that is true, it doesn’t let parents off the hook. It may be possible – I guess – to be opposed to selection in principle even while sending your children to a grammar school. Yet in practice parents cannot challenge a system with any authority when they have cut the ground from beneath their own feet. When prominent people such as Shami Chakrabarti express concerns about selectionand then admit they opt out and write a fat cheque when it comes to their own kids, asking ordinary parents to stand up and be counted becomes tricky. Within the education sector too, people give up their power by acquiescing with a system they think is wrong: I know a headteacher who believes passionately in comprehensive education, whose child attends the local grammar: it is now impossible for that head to speak out without being called a hypocrite. We all make compromises in life, but this one comes at a high price paid by children who aren’t “selected” and who have no power and no say.

No unfair system was ever overturned by people carrying on using it for their own selfish ends while spouting their dismay. If the government sees parents urgently ushering their children into the 11-plus queue, then there is no debate left to win. Arguments against selection are fatally compromised when the very people one might normally expect to challenge unfairness, and who have the political heft to do it – articulate, middle-class parents – wave Charlie and Clara off to the local grammar every
 morning and, perfectly understandably, then feel too embarrassed to raise their voices.

Nobel prize winners’ research worked out a theory on worker productivity – then Amazon and Deliveroo proved it wrong

Ben Chu in The Independent


Financial incentives are important. We all know that’s true. If you were offered a job that paid £10 an hour and then someone else came up offering to pay you £11 an hour for identical work, which one would you choose?

Most of us would also accept that well-designed employment contracts can get more out of us. If we could take home more money for working harder (or more effectively), most of us would.

Bengt Holmstrom won the Nobel economics prize this week for his theoretical research on the optimum design for a worker’s contract to encourage the individual to work as productively as possible.

The work of Holmstrom and his fellow Nobel laureate, Oliver Hart, is subtle, recognising that the complexity of the world can cause simplistic piece-rate contracts or bonus systems to yield undesirable results.

For instance, if you pay teachers more based on exam results, you will find they “teach to the test” and neglect other important aspects of children’s education. If you reward CEOs primarily based on the firm’s share price performance you will find that they focus on boosting the short-term share price, rather than investing for the long-term health of the company.

Holmstrom and Hart also grappled with the problem of imperfect information. It is hard to measure an individual worker’s productivity, particularly when they are engaged in complex tasks.

So how can you design a contract based on individual performance? Holmstrom’s answer was that where measurement is impossible, or very difficult, pay contracts should be biased towards a fixed salary rather than variable payment for performance.

Yet when information on an employee’s performance is close to perfect, there can also be problems.

The information problem seems to be on the way to resolution in parts of the low-skill economy. Digital technology allows much closer monitoring of workers’ performance than in the past. Pickers at Amazon’s Swansea warehouse are issued with personal satnav computers which direct them around the giant warehouse on the most efficient routes, telling them which goods to collect and place in their trolleys. The devices also monitor the workers’ productivity in real time – and those that don’t make the required output targets are “released” by the management.

The so-called “gig economy” is at the forefront of what some are labelling “management by algorithm”. The London-founded cycling food delivery service app Deliveroo recently tried to implement a new pay scale for riders. The company’s London boss said this new system based on fees per delivery would increase pay for the most efficient riders. UberEats – Uber's own meal delivery service – attempted something similar.

Yet the digital productivity revolution is encountering some resistance. The proposed changes by UberEats and Deliveroo provoked strikes from their workers. And there is a backlash against Amazon’s treatment of warehouse workers.

It is possible that some of this friction is as much about employment status as contract design and pay rates. One of the complaints of the UberEats and Deliveroo couriers is that they are not treated like employees at all.

It may also reflect the current state of the labour market. If people don’t want to work in inhuman warehouses or for demanding technology companies, why don’t they take a job somewhere else? But if there are not enough jobs in a particular region, people may have no choice. The employment rate is at an all-time high, but there’s still statistical evidence that many workers would like more hours if they could get them.

Yet the new technology does pose tough questions about worker treatment. And there is no reason why these techniques of digital monitoring of employees should be confined to the gig economy or low-skill warehouse jobs.

One US tech firm called Percolata installs sensors in shops that measure the volume of customers and then compare that with the sales per employee. This allows managements to make a statistical adjustment for the fact that different shops have different customer footfall rates – it fills in the old information blanks. The result is a closer reading of an individual shop worker’s productivity.

Workers who do better can be awarded with more hours. “It creates this competitive spirit – if I want more hours, I need to step it up a bit,” Percolata’s boss told the Financial Times.

It’s possible to envisage these kinds of digital monitoring techniques and calculations being rolled out in a host of jobs and bosses making pay decisions on the basis of detailed productivity data. But one doesn’t have to be a neo-Luddite to feel uncomfortable with these trends. It’s not simply the potential for tracking mistakes by the computers and flawed statistical adjustments that is problematic, but the issue of how this could transform the nature of the workspace.

Financial incentives matter, yet there is rather more to the relationship between a worker and employer than a pay cheque. Factors such as trust, respect and a sense of common endeavour matter too – and can be important motivators of effort.

If technology meant we could design employment contracts whereby every single worker was paid exactly according to his or her individual productivity, it would not follow that we necessarily should.

Sunday, 9 October 2016

An Open Letter to Moderate Muslims

Ali A Rizvi in The Huffington Post

Let’s start with what I’m not going to do.
I’m not going to accuse you of staying silent in the face of the horrific atrocities being committed around the world by your co-religionists. Most of you have loudly and unequivocally condemned groups like the Islamic State (ISIS), and gone out of your way to dissociate yourselves from them. You have helped successfully isolate ISIS and significantly damage its credibility.
I’m also not going to accuse you of being sympathetic to fundamentalists’ causes like violent jihad or conversion by force. I know you condemn their primitive tactics like the rest of us, maybe even more so, considering the majority of victims of Islamic terrorists are moderate Muslims like yourselves. On this, I am with you.
But I do want to talk to you about your increasingly waning credibility — a concern many of you have articulated as well.
You’re feeling more misunderstood than ever, as Islamic fundamentalists hijack the image of Muslims, ostentatiously presenting themselves as the “voice of Islam.” And worse, everyone seems to be buying it.
The frustration is evident. In response to comedian Bill Maher’s recent segment ripping liberals for their silence on criticizing Islam, religious scholar Reza Aslan slammed him in a CNN interview. Visibly exasperated, he ultimately resorted to using words like “stupid” and “bigot” to make his points. (He apologized for this later.)
We’ll get to Aslan’s other arguments in a bit. But first, let’s talk about something he said to his hosts that I know many of you relate to: that moderate Muslims are too often painted with the same brush as their fundamentalist counterparts. This is often true, and is largely unfair to moderates like yourselves.
But you can’t simply blame this on the “ignorance” or “bigotry” of non-Muslims, or on media bias. Non-Muslims and the media are no more monolithic than the Muslim world you and I come from.
The problem is this: moderate Muslims like you also play a significant role in perpetuating this narrative — even if you don’t intend to.
To understand how, it’s important to see how it looks from the other side.
***
Tell me if this sounds familiar:
(1) A moderate Muslim states that ISIS is wrong, they aren’t “true” Muslims, and Islam is a religion of peace.

(2) A questioner asks: what about verses in the Quran like 4:89, saying to “seize and kill” disbelievers? Or 8:12-13, saying God sent angels to “smite the necks and fingertips” of disbelievers, foreboding a “grievous penalty” for whoever opposes Allah and his Messenger? Or 5:33, which says those who “spread corruption” (a vague phrase widely believed to include blasphemy and apostasy) should be “killed or crucified”? Or 47:4, which also prescribes beheading for disbelievers encountered in jihad?
(3) The Muslim responds by defending these verses as Allah’s word — he insists that they have been quoted “out of context,” have been misinterpreted, are meant as metaphor, or that they may even have been mistranslated.

(4) Despite being shown multiple translations, or told that some of these passages (like similar passages in other holy books) are questionable in any context, the Muslim insists on his/her defense of the Scripture.
Sometimes, this kind of exchange will lead to the questioner being labeled an “Islamophobe,” or being accused of bigotry, as Aslan did with Maher and his CNN hosts. This is a very serious charge that is very effective at ending the conversation.No one wants to be called a bigot.
But put yourself in the shoes of your non-Muslim audience. Is it really them linking Islam to terrorism? We’re surrounded with images and videos of jihadists yelling “Allahu Akbar” and quoting passages from the Quran before beheading someone (usually a non-Muslim), setting off an explosion, or rallying others to battle. Who is really making this connection?
What would you do if this situation was reversed? What are non-Muslims supposed to think when even moderate Muslims like yourselves defend the very same words and book that these fundamentalists effortlessly quote as justification for killing them — as perfect and infallible?
Like other moderates, Reza Aslan frequently bemoans those who read the Quran “literally.” Interestingly enough, we sort of agree on this: the thought of the Quran being read “literally” — or exactly as Allah wrote it — unsettles me as much as it unsettles Reza.
This is telling, and Reza isn’t alone. Many of you insist on alternative interpretations, some kind of metaphorical reading — anything to avoid reading the holy book the way it’s actually written. What message do you think this sends? To those on the outside, it implies there is something lacking in what you claim is God’s perfect word. In a way, you’re telling the listener to value your explanations of these words over the sacred words themselves. Obviously, this doesn’t make a great case for divine authorship. Combined with the claims that the book is widely misunderstood, it makes the writer appear either inarticulate or incompetent. I know that’s not the message you mean to send — I’ve been where you are. But it is important to understand why it comes across that way to many non-Muslims.
If any kind of literature is to be interpreted “metaphorically,” it has to at least represent the original idea. Metaphors are meant to illustrate and clarify ideas, not twist and obscure them. When the literal words speak of blatant violence but are claimed to really mean peace and unity, we’re not in interpretation/metaphor zone anymore; we’re heading into distortion/misrepresentation territory. If this disconnect was limited to one or two verses, I would consider your argument. If your interpretation were accepted by all of the world’s Muslims, I would consider your argument. Unfortunately, neither of these is the case.
You may be shaking your head at this point. I know your explanations are very convincing to fellow believers. That’s expected. When people don’t want to abandon their faith or their conscience, they’ll jump on anything they can find to reconcile the two.
But believe me, outside the echo chamber, all of this is very confusing. I’ve argued with Western liberals who admit they don’t find these arguments convincing, but hold back their opinions for fear of being seen as Islamophobic, or in the interest of supporting moderates within the Muslim community who share their goals of fighting jihad and fundamentalism. Many of your liberal allies are sincere, but you’d be surprised how many won’t tell you what they really think because of fear or political correctness. The only difference between them and Bill Maher is that Maher actually says it.
Unfortunately, this is what’s eating away at your credibility. This is what makes otherwise rational moderate Muslims look remarkably inconsistent. Despite your best intentions, you also embolden anti-Muslim bigots — albeit unknowingly — by effectively narrowing the differences between yourselves and the fundamentalists. You condemn all kinds of terrible things being done in the name of your religion, but when the same things appear as verses in your book, you use all your faculties to defend them. This comes across as either denial or disingenuousness, both of which make an honest conversation impossible.
This presents an obvious dilemma. The belief that the Quran is the unquestionable word of God is fundamental to the Islamic faith, and held by the vast majority of Muslims worldwide, fundamentalist or progressive. Many of you believe that letting it go is as good as calling yourself non-Muslim. I get that. But does it have to be that way?
Having grown up as part of a Muslim family in several Muslim-majority countries, I’ve been hearing discussions about an Islamic reformation for as long as I can remember. Ultimately, I came to believe that the first step to any kind of substantive reformation is to seriously reconsider the concept of scriptural inerrancy.
And I’m not the only one. Maajid Nawaz, a committed Muslim, speaks openly about acknowledging problems in the Quran. Recently, in a brave article here right here on The Huffington Post, Imra Nazeer also asked Muslims to reconsider treating the Quran as infallible.
Is she right? At first glance, this may be a shocking thought. But it’s possible, and it actually has precedent.
***
I grew up in Riyadh, Saudi Arabia, before the Internet. We had an after-school tutor who taught us to read and recite the Quran in classical Arabic, the language in which it’s written.
My family is among the majority of the world’s 1.6 billion Muslims — concentrated in countries like Indonesia, India, Pakistan, Turkey and Iran — that doesn’t speak Arabic. Millions of us, however, can read the Quran in Arabic, even if we don’t understand it.
In most Muslim households, the Quran is physically placed at the highest place possible. In our house, it was at the top of a tall bookshelf. It cannot be physically touched unless an act of ablution/purification (wudhu) is first performed. It cannot be recited or touched by menstruating women. It is read in its entirety during the Sunni taraweeh prayers in the holy month of Ramadan. In many Muslim communities, it is held over the heads of grooms and brides as a blessing when they get married. A child completing her first reading of the Quran is a momentous occasion — parties are thrown, gifts are given.
But before the Internet, I rarely met anyone — including the devoutly religious — who had really read the Quran in their own language. We just went by what we heard from our elders. We couldn’t Google or verify things instantaneously like we do now.
There were many things in the Quran we didn’t know were in there. Like Aslan, we also mistakenly thought that harsh punishments in Saudi Arabia like decapitation and hand amputation were cultural and not religious. Later, we learned that the Quran does indeed prescribe beheadings, and says clearly in verse 5:38 that thieves, male or female, should have their hands cut off.
Now, there are also other things widely thought to be in the Quran that aren’t actually in there. A prominent example is the hijab or burka — neither is mentioned in the Quran. Also absent is stoning to death as a punishment — it’s mentioned in the hadith (the Sunnah, or traditions of the Prophet), and even in the Old Testament— but not in the Quran.
Neither male nor female circumcision (M/FGM) are found in the Quran. Again, however, both are mentioned in the hadith. When Aslan discussed FGM, he neglected to mention that of the four Sunni schools of jurisprudence, the Shafi’i school makes FGM mandatory based on these hadith, and the other three schools recommend it. This is why Indonesia, the largest Muslim country in the world, mostly Shafi’i, where Aslan said women were “absolutely 100% equal” to men, has an FGM prevalence of at least 86%, with over 90% of families supporting the practice. And the world’s largest Arab Muslim country, Egypt, has an FGM prevalence of over 90%. So yes, both male and female genital cutting pre-date Islam. But it is inaccurate to say that they have no connection whatever to the religion.
***
That is the kind of information I could never reliably access growing up. But with the Internet came exposure.
Suddenly, every 12-year-old kid could search multiple translations of the Quran by topic, in dozens of languages. Nothing was hidden. It was all right there to see. When Lee Rigby’s murderer cited Surah At-Tawbah to justify his actions, we could go online and see exactly what he was talking about. When ISIS claims divine sanction for its actions by citing verse 33 from Surah Al-Maaidah or verse 4 from Surah Muhammad, we can look it up for ourselves and connect the dots.
Needless to say, this is a pretty serious problem, one that you must address. When people see moderates insisting that Islam is peaceful while also defending these verses and claiming they’re misunderstood, it appears inconsistent. When they read these passages and see fundamentalists carrying out exactly what they say, it appears consistent. That’s scary. You should try to understand it. Loudly shouting “Racist!” over the voices of critics, as Ben Affleck did over Maher and Sam Harris last week, isn’t going to make it go away.
(Also, if you think criticizing Islam is racist, you’re saying that all of Islam is one particular race. There’s a word for that.)
Yes, it’s wrong and unfair for anyone to judge a religion by the actions of its followers, be they progressive Muslims or al Qaeda. But it is appropriate and intellectually honest to judge it by the contents of its canonical texts — texts that are now accessible online to anyone and everyone at the tap of a finger.
Today, you need to do better when you address the legitimate questions people have about your beliefs and your holy book. Brushing off everything that is false or disturbing as “metaphor” or “misinterpretation” just isn’t going to cut it. Neither is dismissing the questioner as a bigot.
How, then, to respond?
***
For starters, it might help to read not only the Quran, but the other Abrahamic texts. When you do, you’ll see that the Old Testament has just as much violence, if not more, than the Quran. Stoning blasphemersstoning fornicatorskilling homosexuals — it’s all in there. When you get about ten verses deep into Deuteronomy 20, you may even swear you’re reading a rulebook for ISIS.
You may find yourself asking, how is this possible? The book of the Jews is not much different from my book. How, then, are the majority of them secular? How is it that most don’t take too seriously the words of the Torah/Old Testament — originally believed to be the actual word of God revealed to Moses much like the Quran to Muhammad — yet still retain strong Jewish identities? Can this happen with Islam and Muslims?
Clearly from the above, the answer is a tried-and-tested yes. And it must start by dissociating Islamic identity from Muslim identity — by coming together on a sense of community, not ideology.
Finding consensus on ideology is impossible. The sectarian violence that continues to plague the Muslim world, and has killed more Muslims than any foreign army, is blatant evidence for this. But coming together on a sense of community is what moves any society forward. Look at other Abrahamic religions that underwent reformations. You know well that Judaism and Christianity had their own violence-ridden dark ages; you mention it every chance you get nowadays, and you’re right. But how did they get past that?
Well, as much as the Pope opposes birth control, abortion and premarital sex, most Catholics today are openly pro-choice, practice birth control, and fornicate to their hearts’ content. Most Jews are secular, and many even identify as atheists or agnostics while retaining the Jewish label. The dissidents and the heretics in these communities may get some flak here and there, but they aren’t getting killed for dissenting.
This is in stark contrast to the Muslim world where, according to a worldwide 2013 Pew Research Study, a majority of people in large Muslim-majority countries like Egypt and Pakistan believe that those who leave the faith must die. They constantly obsess over who is a “real” Muslim and who is not. They are quicker to defend their faith from cartoonists and filmmakers than they are to condemn those committing atrocities in its name. (Note: To their credit, the almost universal, unapologetic opposition against ISIS from Muslims is a welcome development.)
***
The word “moderate” has lost its credibility. Fareed Zakaria has referred to Middle Eastern moderates as a “fantasy.” Even apologists like Nathan Lean are pointing out that the use of this word isn’t helping anyone.
Islam needs reformers, not moderates. And words like “reform” just don’t go very well with words like “infallibility.”
The purpose of reform is to change things, fix the system, and move it in a new direction. And to fix something, you have to acknowledge that it’s broken — not that it looks broken, or is being falsely portrayed as broken by the wrong people — but that it’s broken. That is your first step to reformation.
If this sounds too radical, think back to the Prophet Muhammad himself, who was chased out of Mecca for being a radical dissident fighting the Quraysh. Think of why Jesus Christ was crucified. These men didn’t capitulate or shy away from challenging even the most sacred foundations of the status quo.
These men certainly weren’t “moderates.” They were radicals. Rebels. Reformers. That’s how change happens. All revolutions start out as rebellions. Islam itself started this way. Openly challenging problematic ideas isn’t bigotry, and it isn’t blasphemy. If anything, it’s Sunnah.
Get out there, and take it back.


A Free Market in Tax

Nick Cohen in The Guardian

Donald Trump’s tax affairs are as nothing compared to those of the great global corporations



 


Keeping it offshore: Jost Van Dyke in the British Virgin Islands, a tax haven for the world’s rich. Photograph: Alamy


Donald Trump is offering himself as president of a country whose federal income taxes he gives every appearance of dodging. He says he is fit to be commander in chief, after avoiding giving a cent more than he could towards the wages of the troops who must fight for him. He laments an America where “our roads and bridges are falling apart, our airports are in third world condition and 43 million Americans are on food stamps”, while striving tirelessly to avoid paying for one pothole to be mended or mouth to be filled.

Men’s lies reveal more about them than their truths. For years, Trump promoted the bald, racist lie that Barack Obama was born in Kenya and, as an unAmerican, was disqualified from holding the presidency. We should have guessed then. We should have known that Trump’s subconscious was trying to hide the fact that he was barely an American citizen at all.


He would not contribute to his country or play his part in its collective endeavours. Like a guest in a hotel who runs off leaving the bill, Trump wanted to enjoy the room service without paying for the room. You should never lose your capacity to be shocked, especially in 2016 when the shocking has become commonplace. The New York Times published a joint piece last week by former White House ethics advisers – one to George W Bush and one to Barack Obama, so no one could accuse the paper of bias. They were stunned.

No president would have nominated Trump for public office, they said. If one had, “explaining to the senate and to the American people how a billionaire could have a $916m ‘loss carry-forward’ that potentially allowed him to not pay taxes for perhaps as long as 18 years would have been far too difficult for the White House when many hard-working Americans turn a third or more of their earnings over to the government”.

Trump’s bragging about the humiliations he inflicts on women is shocking. Trump’s oxymoronic excuses about his “fiduciary duty” to his businesses to pay as little personal tax as he could are shocking. (No businessman has a corporate “fiduciary duty” to enrich himself rather than his company.) Never let familiarity dilute your contempt.

And yet looked at from another angle, Trump is not so shocking. You may be reading this piece online after clicking on a Facebook link. If you are in Britain, the profits from the adverts Facebook hits you with will be logged in Ireland, which required Facebook to pay a mere €3.4m in corporate taxes last year on revenues of €4.83bn . If you are reading on an Apple device, Apple has booked $214.9bn offshore to avoid $65.4bn in US taxes. They are hardly alone. One recent American study found that 367 of the Fortune 500 operate one or more subsidiaries in tax havens.

Trump may seem a grotesque and alien figure, but his values are all around you. The Pepsi in your hand, the iPhone in your pocket, the Google search engine you load and the Nike trainers you put on your feet come from a tax-exempt economy, which expects you to pick up the bills.


The short answer to Conservatives who say “their behaviour is legal” is that it is a scandal that it is legal. The long answer is to invite them to look at the state of societies where Trumpian economics have taken hold. If they live in Britain or America, they should not have to look far.

The story liberal capitalism tells itself is heroic. Bloated incumbent businesses are overthrown by daring entrepreneurs. They outwit the complacent and blundering old firms and throw them from their pinnacles. They let creative destruction rip through the economy and bring new products and jobs with it.

If that justification for free-market capitalism was ever true, it is not true now. The free market in tax, it turns out, allows firms to move offshore and leave stagnant economies behind. Giant companies are no longer threatened by buccaneering entrepreneurs and innovative small businesses. Indeed, they don’t appear to be threatened by anyone.

The share of nominal GDP generated by the Fortune 100 biggest American companies rose from 33% of GDP in 1994 to 46% in 2013, the Economist reported. Despite all the fuss about tech entrepreneurship, the number of startups is lower than at any time since the late 1970s. More US companies now die than are born.

For how can small firms, which have to pay tax, challenge established giants that move their money offshore? They don’t have lobbyists. They can’t use a small part of their untaxed profits to make the campaign donations Google and the other monopolistic firms give to keep the politicians onside.

John Lewis has asked our government repeatedly how it can be fair to charge the partnership tax while allowing its rival Amazon to run its business through Luxembourg. A more pertinent question is why any government desperate for revenue would want a system that gave tax dodgers a competitive advantage.

What applies to businesses applies to individuals. The tax take depends as much on national culture as the threat of punishment, on what economists call “tax morale”.

No one likes paying taxes, but in northern European and North American countries most thought that they should pay them. Maybe I have lived a sheltered life, but I have no more heard friends discuss how they cheat the taxman than I have heard them discuss how they masturbate. If they cheat, they keep their dirty secrets to themselves. Let tax morale collapse, let belief in the integrity of the system waver, however, and states become like Greece, where everyone who can evade tax does.

The surest way to destroy morale is to make the people who pay taxes believe that the government is taking them for fools by penalising them while sparing the wealthy.


Theresa May promised at the Conservative party conference that “however rich or powerful – you have a duty to pay your tax”.

I would have been more inclined to believe her if she had promised, at this moment of asserting sovereignty, to close the British sovereign tax havens of the Channel Islands, Isle of Man, Bermuda and the British Virgin and Cayman Islands.


But let us give the new PM time to prove herself. If she falters, she should consider this. Revenue & Customs can only check 4% of self-assessment tax returns. If the remaining 96% decide that if Trump and his kind can cheat, they can cheat too, she would not be able to stop them.