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Wednesday 2 June 2021

2 Why central bankers no longer agree how to handle inflation

Chris Giles, James Politi, Martin Arnold and Robin Harding in The FT 

Once, central bankers knew what they needed to do to handle inflation. As they grapple with the economic consequences of the coronavirus pandemic, the consensus on how best to foster low and stable price growth has broken down. 

After years of setting interest rates on the basis of inflation forecasts and seeking to hit a target of about 2 per cent, the leading monetary authorities around the world are pursuing different strategies. 

The OECD warned this week that “vigilance is needed”, but any attempt to raise interest rates should be “state-dependent and guided by sustained improvements in labour markets, signs of durable inflation pressures and changes in the fiscal policy stance” — so vague that every major central bank can say its policy meets the criteria. 

The US Federal Reserve has shifted its stance to give more leeway to inflation and greater priority to employment, the European Central Bank is embroiled in a row over whether to be more tolerant of any inflation overshoot, and the Bank of Japan is vainly battling to revive consumers’ price growth expectations. 

The US shift in strategy has been the most radical; last year Fed chair Jay Powell announced a new monetary framework. 

The Fed’s creed seeks to move away from decades of pre-emptive interest rate increases to stave off potential inflationary pressures while more doggedly pursuing full employment, a strategy that it argues will benefit more Americans, including low-wage workers and minority groups. 

It will allow inflation to overshoot its 2 per cent target for some time after a prolonged undershoot, in an attempt to ensure companies and businesses expect interest rates to remain low for a long time and will therefore spend rather than save. One of the Fed’s motivations is to avoid repeating its stance after the financial crisis, when policy tightening slowed the recovery. 

“I am attentive to the risks on both sides of this expected path,” said Lael Brainard, a Fed governor, on Tuesday. She would “carefully monitor” inflation data to make sure it did not develop in “unwelcome ways” but also “be attentive to the risks of pulling back too soon”, she said, warning that pre-pandemic trends of “low equilibrium interest rates [and] low underlying trend inflation” were “likely to reassert” themselves. 

But critics worry the Fed’s strategy was designed for a world of cautious fiscal policy, not the pandemic era of massive borrowing and spending, and that this could leave it behind the curve if price pressures build. 

Friday’s 3.1 per cent annual rise in the core personal consumption expenditure index reinforced some of those fears. 

The BoJ has been pursuing an inflation-overshoot commitment for the past five years, but has not even got close to its 2 per cent target. Strikingly little has changed after the pandemic: inflation is nowhere on the horizon and spending growth is sluggish. 

Japan’s households and companies are convinced inflation will remain near zero, making it all but impossible for the BoJ to achieve its goal. 

“The formation of inflation expectations in Japan is deeply affected by not only the observed inflation rate at the time but also past experiences and the norms developed in the process,” BoJ governor Haruhiko Kuroda said in a recent speech. 

Meanwhile eurozone policymakers are embroiled in a furious argument as the ECB conducts its own policy review; the results will be announced in September. 

Olli Rehn, who sits on the council as governor of Finland’s central bank, recently said: “From the point of view of economic and social welfare it makes sense to accept a certain period of [inflation] overshooting, while taking into account the history of undershooting.” 

But Isabel Schnabel, an ECB executive director, warned that would be risky. Schnabel said last month that although the central bank should not overreact if inflation overshoots after sluggishness, she is “sceptical” of formally targeting average inflation over a set period. 

“How long should the period be over which the average is calculated? How much of that should be communicated?” she asked. “I personally don’t think we should follow such a strategy.” 

For some economists, these disagreements are beside the point: monetary policy has become so extended that central bankers lack effective tools to do more. 

Richard Barwell, head of macro research at BNP Paribas Asset Management, said the ECB was almost “out of ammunition” and while eurozone inflation in May rose just above its target of near but below 2 per cent, it would take ambitious fiscal policy or simply luck to do so for a sustained period. 

“Unless there is some massive Biden-style fiscal stimulus coming down the road in Europe or the disinflationary headwinds suddenly dissipate, the amount of monetary stimulus needed to get inflation above 2 per cent is . . . well beyond what they can do,” he said. 

That leaves the Fed alone with a difficult choice in the months ahead. US inflation is overshooting its target, demand is rampant and it needs to decide whether to apply the brakes gently. 

Policymakers are poised to open a debate winding down some support, but they have shown no sign of wavering from their new policy framework, insisting the recent inflation rise is likely to be transitory, not sustained. 

Last week Fed vice-chair Randal Quarles said the framework was designed for the current world with “slow workforce growth, lower potential growth, lower underlying inflation and, therefore, lower interest rates”. 

“I am not worried about a return to the 1970s,” he said.

Tuesday 1 June 2021

1 A new economic era: is inflation coming back for good?

 Chris Giles in The FT 


The December meeting of the Federal Reserve’s most important economic committee was routine. Policymakers agreed that the economy could cope with rising levels of spending “without any strong general upward pressure on prices”. 

Although prices of a few raw materials were rising sharply, “finished goods have not been subject to pervasive upward cost pressures”. 

Generalised inflation, the committee concluded, was not a serious concern. 

This meeting of the Federal Open Market Committee was held on December 15 1964, just two weeks before the start of a 17-year period the Fed now dubs The Great Inflation. Inflation: 

Turning points in price trends tend to occur just at the moment when the authorities and expert opinion dismiss the risks. The current consensus is that price rises in commodities and goods markets have clear pandemic-related explanations and that the risks of a resurgence in global inflation remains remote. 

Three decades after the authorities in advanced economies managed to suppress the beast, they remain confident they are in control. The mantra of the moment is summed up by Andrew Bailey, Bank of England governor, who likes to say he is watching inflation “extremely carefully” but not worrying. 

This view is still the mainstream but it is losing supporters. One notable recent defector is Roger Bootle, author of the book The Death of Inflation, who spotted the coming decline in price rises in the mid 1990s. He is now worried. “Financial markets are going to have to get used to the return of troublesome issues that had, until recently, seemed long dead,” Bootle wrote in May. 

Central bankers have not had to deal with an inflation problem during their careers. Having averaged around 10 per cent a year in the 1970s and 1980s, global inflation rates fell to an average close to 5 per cent in the 1990s in the rich world countries of the OECD, 3 per cent in the 2000s and 2 per cent in the 2010s. The question today is whether their view is complacent. Is the world entering another inflationary era? 

While many households think the definition of price stability would be an absence of inflation, economists and policymakers favour a gentle annual increase in prices of around 2 per cent. This reduces the risk that an economic crisis could spark a deflationary spiral with spending, prices and wages all falling, raising the real burden of debts and further hitting spending. Holger Schmieding, chief economist of Berenberg Bank, explains that a little inflation also greases the wheels of the economy, allowing declining sectors to fall behind gracefully. 

“Higher inflation eases economic adjustments as it creates more scope for changes in relative wages without a need for an outright fall in wages in sectors under pressure,” he says. 

In most advanced economies — the US, the eurozone and Japan — central banks have fallen short of meeting their targets of inflation of around 2 per cent despite having slashed interest rates to zero and having created trillions of dollars, euros and yen, which has been pumped it into their economies by purchasing government debt. A modest rise in inflation therefore would be welcomed by central banks, which have generally been delegated the task of achieving price stability. 

And until this year, the main economic concern regarding prices was the risk that countries were turning Japanese and might soon emulate the nation’s 30-year struggle with mild deflation. Such was the difficulty of keeping inflation high enough that some economists even began to question the doctrine of Ben Bernanke, former Fed chair, who argued in 2002 that “under a paper-money system, a determined government can always generate higher spending and hence positive inflation”. 

But this view of the world has turned on its head in 2021. A new whatever-it-takes borrowing and spending programme by the Biden administration, enforced savings during the coronavirus crisis giving households additional firepower, bottlenecks in the supply of goods and a reversal of longstanding downward pressures on global wages and prices have rekindled fears of excessive inflation. 

No one is talking about hyperinflation of the sort seen in Weimar Germany in 1923 or Latin America in the 1980s or even the 10 per cent global rate of the 1970s, but a creeping rise to persistent levels of generalised price increases not seen in a generation. When the April rate of US inflation jumped to 4.2 per cent, financial markets swooned. 

The new concern about a return to inflation is not just the result of immediate economic forces but also reflects longer-term, underlying changes in the structure of the global economy. The aggressive economic stimulus is being adopted at the very moment when the global economy is feeling the impact of ageing populations and the maturing of China’s 40-year transition. 

Moreover, history also tells us that neither politicians, economists nor policymakers can guarantee the world will maintain low and stable inflation. As the Fed’s experience from the 1960s demonstrates, turning points in inflation arrive with little warning. Unlike in the US, where there was no fear of inflation after the second world war, concern about inflation was “always rumbling on” following devaluations of sterling and higher import prices in the UK during the full employment years of the 1950s and 1960s, according to Nick Crafts, professor of economic history at Sussex university. 

But it only really took off in the 1970s after the first Opec oil shock and a switch in government policy from austerity to “a massively excessive stimulus, pushing the economy beyond any reasonable estimate of the sustainable level of unemployment”, Crafts adds. 

Research from Luca Benati, professor at Bern university, suggests that the world’s faith in central bankers being able to tame any similar episodes is probably overblown. The UK’s inflationary pressure in the 1970s was so strong, he found, that when he ran history again in multiple simulations assuming an independent central bank is in charge of controlling prices, inflationary forces would have been more powerful than any likely action by a Bank of England with an independent Monetary Policy Committee. In the 1970s, it would have had only a “limited impact” on quelling price rises which reached an annual rate of 26.9 per cent in 1975. 

According to Karen Ward, chief European market strategist at JPMorgan Asset Management, this means the Bernanke doctrine still stands and should not be forgotten. “We’ve always assumed that the structural supply side enhancements such as technology and globalisation are so great that we could never overwhelm them with demand, but it still must be the case that you can overwhelm supply with demand and ultimately generate inflation,” she says. 

It is exactly this fear which is raising inflation rate expectations in the US and Europe at the moment. Alongside a recovery of energy prices to pre-Covid levels, there has been a shortage of microchips, wood products, many metals and even cheese. These have been the proximate causes of higher inflation, but financial markets worry that the ultimate cause has been the pandemic-related fiscal and monetary stimulus which has led to a much faster economic recovery in advanced economies than was thought possible at the end of 2020. 

With economic policy pressing harder on the accelerator than at any time in recent history, spending could exceed the capacity of economies to provide goods and services, especially if the coronavirus crisis and government support have left people less willing to work, creating labour shortages and significant pressure on companies to raise wages. 

Such is the potential imbalance between rampant demand and more constrained supply, especially in the US, some supporters of centre-left policy ideas say that warning lights are flashing. Larry Summers, Treasury secretary in the Clinton administration, thinks policy has become far too lax, repeatedly criticising the “dangerous complacency” over inflation of today’s policymakers in recent weeks. 

While the White House has hit back, saying “a strong economy depends on a solid foundation of public investment, and that investments in workers, families and communities can pay off for decades to come”, even Janet Yellen, current Treasury secretary, has acknowledged the possible need for interest rates to rise “to make sure that our economy doesn’t overheat”. 

The policy shift has come at a point when economists generally accept that some of the big global forces holding prices down are much weaker than they were. In the 1990s and 2000s, globalisation led to a huge transfer of the production of goods from high wage economies to China and eastern Europe, accelerating a decline in the power of workers in advanced economies to force their employers to pay them more, keeping prices low. 

But these forces are at a turning point, according to Charles Goodhart, former chief economist of the Bank of England, and an author of the book The Great Demographic Reversal. The long boom in the size of its workforce has ended and its population is on the verge of falling for the first time in decades. Goodhart says that fewer new workers becoming integrated into the global labour force at a time of shrinking workforces in advanced economies as populations age will raise the pressures on companies to push up wages, increasing underlying inflationary pressures. 

The change in demographic pressures have already been around for a decade and are intensifying, Goodhart says. He had been wary of putting a date on the coming inflation, saying that the world is likely so see rising inflationary pressure within five years and “we are fairly sure it would have happened by 2030”. 

That was before Covid struck. Now, he says the underlying pressures, alongside more stimulative policies and Covid-related restrictions in supply, have brought forward the moment. “We tend to think that because of supply constraints in particular, it’s going to be more inflationary in 2021 than central bankers originally thought and it will last longer in 2022 and 2023 because there will be a confluence of the build-up of large monetary balances . . . combined with large continued fiscal expansion.” 

Turning to specific examples of prices he expected to see rise, Goodhart notes how the added demand for holidays in the UK would push up the prices of holiday rentals, hotels and even ice cream this summer. “You’d have to be a saint not to raise your prices,” he says. 

Demographic pressures are not something that can be reversed quickly, nor he argues can the forces of globalisation, which have gone into retreat having become politically unpopular in many advanced economies. Again, this is most acute in the US where economists such as Adam Posen, president of the Peterson Institute for International Economics, urges Americans to “embrace economic change rather than nostalgia” in domestic production, especially in manufacturing, as a means to improving living standards and promoting non-inflationary growth. 

So far, however, although financial market expectations of inflation have risen sharply in 2021, mainstream policymakers are remaining calm. 

There is increasing chatter in the Fed that at some point the current members of the interest-rate setting committee need to think about scaling back the pace of money creation and purchases of government bonds. But the view is that inflation is recovering to more normal levels and the US central bank has pledged to keep policy ultra accommodative until it achieves a more inclusive recovery. 

This is the right approach, says Laurence Boone, chief economist of the OECD in Paris, a view which chimes with similar attitudes in central banks around the world. “It’s too early to ring the alarm bells about inflation,” she says. “That doesn’t mean one doesn’t have to watch what’s happening and we’re seeing frictions with the reopening of demand and supply after the crisis . . . but the right policy is to ease tensions on the supply side more than central bank action [to quell inflationary pressures].” 

In most economies, there remains significant slack in the labour market, she adds, and the big demographic pressures could be eased significantly with later retirement, while other parts of Asia and Africa would be delighted to integrate into the global economy as China did. 

Boone’s view still represents the consensus opinion among economists and there is considerable confidence in central banks that any rise in inflation this year will be temporary and easily tamed without having to tighten policy significantly. 

But, for the first time in many decades, there is the possibility that a significant turning point has arrived, that price rises will be more than a flash in the pan and something more difficult to control.

Why every single statue should come down

Statues of historical figures are lazy, ugly and distort history. From Cecil Rhodes to Rosa Parks, let’s get rid of them all writes Gary Younge in The Guardian


Having been a black leftwing Guardian columnist for more than two decades, I understood that I would be regarded as fair game for the kind of moral panics that might make headlines in rightwing tabloids. It’s not like I hadn’t given them the raw material. In the course of my career I’d written pieces with headlines such as “Riots are a class act”, “Let’s have an open and honest conversation about white people” and “End all immigration controls”. I might as well have drawn a target on my back. But the only time I was ever caught in the tabloids’ crosshairs was not because of my denunciations of capitalism or racism, but because of a statue – or to be more precise, the absence of one.

The story starts in the mid-19th century, when the designers of Trafalgar Square decided that there would be one huge column for Horatio Nelson and four smaller plinths for statues surrounding it. They managed to put statues on three of the plinths before running out of money, leaving the fourth one bare. A government advisory group, convened in 1999, decided that this fourth plinth should be a site for a rotating exhibition of contemporary sculpture. Responsibility for the site went to the new mayor of London, Ken Livingstone.

Livingstone, whom I did not know, asked me if I would be on the committee, which I joined in 2002. The committee met every six weeks, working out the most engaged, popular way to include the public in the process. I was asked if I would chair the meetings because they wanted someone outside the arts and I agreed. What could possibly go wrong?

Well, the Queen Mother died. That had nothing to do with me. Given that she was 101 her passing was a much anticipated, if very sad, event. Less anticipated was the suggestion by Simon Hughes, a Liberal Democrat MP and potential candidate for the London mayoralty, that the Queen Mother’s likeness be placed on the vacant fourth plinth. Worlds collided.

The next day, the Daily Mail ran a front page headline: “Carve her name in pride - Join our campaign for a statue of the Queen Mother to be erected in Trafalgar Square (whatever the panjandrums of political correctness say!)” Inside, an editorial asked whether our committee “would really respond to the national mood and agree a memorial in Trafalgar Square”.

Never mind that a committee, convened by parliament, had already decided how the plinth should be filled. Never mind that it was supposed to be an equestrian statue and that the Queen Mother will not be remembered for riding horses. Never mind that no one from the royal family or any elected official had approached us.

The day after that came a double-page spread headlined “Are they taking the plinth?”, alongside excerpts of articles I had written several years ago, taken out of context, under the headline “The thoughts of Chairman Gary”. Once again the editorial writers were upon us: “The saga of the empty plinth is another example of the yawning gap between the metropolitan elite hijacking this country and the majority of ordinary people who simply want to reclaim Britain as their own.”

The Mail’s quotes were truer than it dared imagine. It called on people to write in, but precious few did. No one was interested in having the Queen Mother in Trafalgar Square. The campaign died a sad and pathetic death. Luckily for me, it turned out that, if there was a gap between anyone and the ordinary people of the country on this issue, then the Daily Mail was on the wrong side of it.

This, however, was simply the most insistent attempt to find a human occupant for the plinth. Over the years there have been requests to put David Beckham, Bill Morris, Mary Seacole, Benny Hill and Paul Gascoigne up there. None of these figures were particularly known for riding horses either. But with each request I got, I would make the petitioner an offer: if you can name those who occupy the other three plinths, then the fourth is yours. Of course, the plinth was not actually in my gift. But that didn’t matter because I knew I would never have to deliver. I knew the answer because I had made it my business to. The other three were Maj Gen Sir Henry Havelock, who distinguished himself during what is now known as the Indian Rebellion of 1857, when an uprising of thousands of Indians ended in slaughter; Gen Sir Charles Napier, who crushed a rebellion in Ireland and conquered the Sindh province in what is now Pakistan; and King George IV, an alcoholic, debtor and womaniser.

The petitioners generally had no idea who any of them were. And when they finally conceded that point, I would ask them: “So why would you want to put someone else up there so we could forget them? I understand that you want to preserve their memory. But you’ve just shown that this is not a particularly effective way to remember people.”

In Britain, we seem to have a peculiar fixation with statues, as we seek to petrify historical discourse, lather it in cement, hoist it high and insist on it as a permanent statement of fact, culture, truth and tradition that can never be questioned, touched, removed or recast. This statue obsession mistakes adulation for history, history for heritage and heritage for memory. It attempts to detach the past from the present, the present from morality, and morality from responsibility. In short, it attempts to set our understanding of what has happened in stone, beyond interpretation, investigation or critique.

But history is not set in stone. It is a living discipline, subject to excavation, evolution and maturation. Our understanding of the past shifts. Our views on women’s suffrage, sexuality, medicine, education, child-rearing and masculinity are not the same as they were 50 years ago, and will be different again in another 50 years. But while our sense of who we are, what is acceptable and what is possible changes with time, statues don’t. They stand, indifferent to the play of events, impervious to the tides of thought that might wash over them and the winds of change that that swirl around them – or at least they do until we decide to take them down.
Workers removing a statue of Confederate general JEB Stuart in Richmond, Virginia, July 2020. Photograph: Jim Lo Scalzo/EPA

In recent months, I have been part of a team at the University of Manchester’s Centre on the Dynamics of Ethnicity (Code) studying the impact of the Black Lives Matter movement on statues and memorials in Britain, the US, South Africa, Martinique and Belgium. Last summer’s uprisings, sparked by the police murder of George Floyd in Minneapolis, spread across the globe. One of the focal points, in many countries, was statues. Belgium, Brazil, Ireland, Portugal, the Netherlands and Greenland were just a few of the places that saw statues challenged. On the French island of Martinique, the statue of Joséphine de Beauharnais, who was born to a wealthy colonial family on the island and later became Napoleon’s first wife and empress, was torn down by a crowd using clubs and ropes. It had already been decapitated 30 years ago.

Across the US, Confederate generals fell, were toppled or voted down. In the small town of Lake Charles, Louisiana, nature presented the local parish police jury with a challenge. In mid-August last year, the jury voted 10-4 to keep a memorial monument to the soldiers who died defending the Confederacy in the civil war. Two weeks later, Hurricane Laura blew it down. Now the jury has to decide not whether to take it down, but whether to put it back up again.

And then, of course, in Britain there was the statue of Edward Colston, a Bristol slave trader, which ended up in the drink. Britain’s major cities, including Manchester, Glasgow, Birmingham and Leeds, are undertaking reviews of their statues.

Many spurious arguments have been made about these actions, and I will come to them in a minute. But the debate around public art and memorialisation, as it pertains to statues, should be engaged not ducked. One response I have heard is that we should even out the score by erecting statues of prominent black, abolitionist, female and other figures that are underrepresented. I understand the motivation. To give a fuller account of the range of experiences, voices, hues and ideologies that have made us what we are. To make sure that public art is rooted in the lives of the whole public, not just a part of it, and that we all might see ourselves in the figures that are represented.

But while I can understand it, I do not agree with it. The problem isn’t that we have too few statues, but too many. I think it is a good thing that so many of these statues of pillagers, plunderers, bigots and thieves have been taken down. I think they are offensive. But I don’t think they should be taken down because they are offensive. I think they should be taken down because I think all statues should be taken down.

Here, to be clear, I am talking about statues of people, not other works of public memorials such as the Vietnam Veterans Memorial in Washington DC, the Holocaust memorial in Berlin or the Famine memorial in Dublin. I think works like these serve the important function of public memorialisation, and many have the added benefit of being beautiful.

The same cannot be said of statues of people. I think they are poor as works of public art and poor as efforts at memorialisation. Put more succinctly, they are lazy and ugly. So yes, take down the slave traders, imperial conquerors, colonial murderers, warmongers and genocidal exploiters. But while you’re at it, take down the freedom fighters, trade unionists, human rights champions and revolutionaries. Yes, remove Columbus, Leopold II, Colston and Rhodes. But take down Mandela, Gandhi, Seacole and Tubman, too.

I don’t think those two groups are moral equals. I place great value on those who fought for equality and inclusion and against bigotry and privilege. But their value to me need not be set in stone and raised on a pedestal. My sense of self-worth is not contingent on seeing those who represent my viewpoints, history and moral compass forced on the broader public. In the words of Nye Bevan, “That is my truth, you tell me yours.” Just be aware that if you tell me your truth is more important than mine, and therefore deserves to be foisted on me in the high street or public park, then I may not be listening for very long.

For me the issue starts with the very purpose of a statue. They are among the most fundamentally conservative – with a small c – expressions of public art possible. They are erected with eternity in mind – a fixed point on the landscape. Never to be moved, removed, adapted or engaged with beyond popular reverence. Whatever values they represent are the preserve of the establishment. To put up a statue you must own the land on which it stands and have the authority and means to do so. As such they represent the value system of the establishment at any given time that is then projected into the forever.

That is unsustainable. It is also arrogant. Societies evolve; norms change; attitudes progress. Take the mining magnate, imperialist and unabashed white supremacist Cecil Rhodes. He donated significant amounts of money with the express desire that he be remembered for 4,000 years. We’re only 120 years in, but his wish may well be granted. The trouble is that his intention was that he would be remembered fondly. And you can’t buy that kind of love, no matter how much bronze you lather it in. So in both South Africa and Britain we have been saddled with these monuments to Rhodes.

The trouble is that they are not his only legacy. The systems of racial subjugation in southern Africa, of which he was a principal architect, are still with us. The income and wealth disparities in that part of the world did not come about by bad luck or hard work. They were created by design. Rhodes’ design. This is the man who said: “The native is to be treated as a child and denied franchise. We must adopt a system of despotism, such as works in India, in our relations with the barbarism of South Africa.” So we should not be surprised if the descendants of those so-called natives, the majority in their own land, do not remember him fondly.
A statue of Cecil Rhodes being removed from the University of Cape Town campus, South Africa, 2015. Photograph: Schalk van Zuydam/AP

A similar story can be told in the southern states of the US. In his book Standing Soldiers, Kneeling Slaves, the American historian Kirk Savage writes of the 30-year period after the civil war: “Public monuments were meant to yield resolution and consensus, not to prolong conflict … Even now to commemorate is to seek historical closure, to draw together the various strands of meaning in an historical event or personage and condense its significance.”

Clearly these statues – of Confederate soldiers in the South, or of Rhodes in South Africa and Oxford – do not represent a consensus now. If they did, they would not be challenged as they are. Nobody is seriously challenging the statue of the suffragist Millicent Fawcett in Parliament Square, because nobody seriously challenges the notion of women’s suffrage. Nor is anyone seeking historical closure via the removal of a statue. The questions that some of these monuments raise – of racial inequality, white supremacy, imperialism, colonialism and slavery – are still very much with us. There is a reason why these particular statues, and not, say, that of Robert Raikes, who founded Sunday schools, which stands in Victoria Embankment Gardens in London, were targeted during the Black Lives Matter protests.

But these statues never represented a consensus, even when they were erected. Take the statues of Confederate figures in Richmond, Virginia that were the focus of protests last summer. Given that the statues represented men on the losing side of the civil war, they certainly didn’t represent a consensus in the country as a whole. The northern states wouldn’t have appreciated them. But closer to home, they didn’t even represent the general will of Richmond at the time. The substantial African American population of the city would hardly have been pleased to see them up there. And nor were many whites, either. When a labour party took control of Richmond city council in the late 1880s, a coalition of blacks and working-class whites refused to vote for an unveiling parade for the monument because it would “benefit only a certain class of people”.

Calls for the removal of statues have also raised the charge that longstanding works of public art are at the mercy of political whim. “Is nothing sacred?” they cry. “Who next?” they ask, clutching their pearls and pointing to Churchill. But our research showed these statues were not removed as a fad or in a feverish moment of insubordination. People had been calling for them to be removed for half a century. And the issue was never confined to the statue itself. It was always about what the statue represented: the prevailing and persistent issues that remained, and the legacy of whatever the statue was erected to symbolise.

One of the greatest distractions when it comes to removing statues is the argument that to remove a statue is to erase history; that to change something about a statue is to tamper with history. This is such errantarrant nonsense it is difficult to know where to begin, so I guess it would make sense to begin at the beginning.

Statues are not history; they represent historical figures. They may have been set up to mark a person’s historical contribution, but they are not themselves history. If you take down Nelson Mandela’s bust on London’s South Bank, you do not erase the history of the anti-apartheid struggle. Statues are symbols of reverence; they are not symbols of history. They elevate an individual from a historical moment and celebrate them.

Nobody thinks that when Iraqis removed statues of Saddam Hussein from around the country they wanted him to be forgotten. Quite the opposite. They wanted him, and his crimes, to be remembered. They just didn’t want him to be revered. Indeed, if the people removing a statue are trying to erase history, then they are very bad at it. For if the erection of a statue is a fact of history, then removing it is no less so. It can also do far more to raise awareness of history. More people know about Colston and what he did as a result of his statue being taken down than ever did as a result of it being put up. Indeed, the very people campaigning to take down the symbols of colonialism and slavery are the same ones who want more to be taught about colonialism and slavery in schools. The ones who want to keep them up are generally the ones who would prefer we didn’t study what these people actually did.

But to claim that statues represent history does not merely misrepresent the role of statues, it misunderstands history and their place in it. Let’s go back to the Confederate statues for a moment. The American civil war ended in 1865. The South lost. Much of its economy and infrastructure were laid to waste. Almost one in six white Southern men aged 13 to 43 died; even more were wounded; more again were captured.

Southerners had to forget the reality of the civil war before they could celebrate it. They did not want to remember the civil war as an episode that brought devastation and humiliation. Very few statues went up in the decades immediately after the war. According to the Southern Poverty Law Centre, nearly 500 monuments to Confederate white supremacy were erected across the country – many in the North – between 1885 and 1915. More than half were built within one seven-year period, between 1905 and 1912.
A toppled confederate statue in Chapel Hill, North Carolina in 2018. Photograph: Sipa US/Alamy

The timing was no coincidence. It was long enough since the horrors of the civil war that it could be misremembered as a noble defence of racialised regional culture rather than just slavery. As such, it represented a sanitised, partial and selective version of history, based less in fact than toxic nostalgia and melancholia. It’s not history that these statues’ protectors are defending: it’s mythology.

Colston, an official in the Royal African Company, which reportedly sold as many as 100,000 west Africans into slavery, died in 1721. His statue didn’t go up until 1895, more than 150 years later. This was no coincidence, either. Half of the monuments taken down or seriously challenged recently were put up in the three decades between 1889 and 1919. This was partly an aesthetic trend of the late Victorian era. But it should probably come as little surprise that the statues that anti-racist protesters wanted to be taken down were those erected when Jim Crow segregation was firmly installed in the US, and at the apogee of colonial expansion.

Statues always tell us more about the values of the period when they were put up than about the story of the person depicted. Two years before Martin Luther King’s death, a poll showed that the majority of Americans viewed him unfavourably. Four decades later, when Barack Obama unveiled a memorial to King in Washington DC, 91% of Americans approved. Rather than teaching us about the past, his statue distorts history. As I wrote in my book The Speech: The Story Behind Dr Martin Luther King Jr’s Dream, “White America came to embrace King in the same way that white South Africans came to embrace Nelson Mandela: grudgingly and gratefully, retrospectively, selectively, without grace or guile. Because by the time they realised their hatred of him was spent and futile, he had created a world in which loving him was in their own self-interest. Because, in short, they had no choice.”

One claim for not bringing down certain statues of people who committed egregious acts is that we should not judge people of another time by today’s standards. I call this the “But that was before racism was bad” argument or, as others have termed it, the Jimmy Savile defence.

Firstly, this strikes me as a very good argument for not erecting statues at all, since there is no guarantee that any consensus will persist. Just because there may be a sense of closure now doesn’t mean those issues won’t one day be reopened. But beyond that, by the time many of these statues went up there was already considerable opposition to the deeds that had made these men (and they are nearly all men) rich and famous. In Britain, slavery had been abolished more than 60 years before Colston’s statue went up. The civil war had been over for 30 years before most statues of Confederate generals went up. Cecil Rhodes and King Leopold II of Belgium were both criticised for their vile racist acts and views by their contemporaries. In other words, not only was what they did wrong, but it was widely known to be wrong at the time they did it. By the time they were set in stone there were significant movements, if not legislation, condemning the very things that had made them rich and famous.
A defaced statue of Leopold II in Arlon, Belgium last year. Photograph: Jean-Christophe Guillaume/Getty Images

A more honest appraisal of why the removal of these particular statues rankles with so many is that they do not actually want to engage with the history they represent. Power, and the wealth that comes with it, has many parents. But the brutality it takes to acquire it is all too often an orphan. According to a YouGov poll last year, only one in 20 Dutch, one in seven French, one in 5 Brits and one in four Belgians and Italians believe their former empire is something to be ashamed of. If these statues are supposed to tell our story, then why, after more than a century, do so few people actually know it?

This brings me to my final point. Statues do not just fail to teach us about the past, or give a misleading idea about particular people or particular historical events – they also skew how we understand history itself. For when you put up a statue to honour a historical moment, you reduce that moment to a single person. Individuals play an important role in history. But they don’t make history by themselves. There are always many other people involved. And so what is known as the Great Man theory of history distorts how, why and by whom history is forged.

Consider the statue of Rosa Parks that stands in the US Capitol. Parks was a great woman, whose refusal to give up her seat for a white woman on a bus in Montgomery, Alabama challenged local segregation laws and sparked the civil rights movement. When Parks died in 2005, her funeral was attended by thousands, and her contribution to the civil rights struggle was eulogised around the world.

But the reality is more complex. Parks was not the first to plead not guilty after resisting Montgomery’s segregation laws on its buses. Before Parks, there was a 15-year-old girl named Claudette Colvin. Colvin was all set to be the icon of the civil rights movement until she fell pregnant. Because she was an unmarried teenager, she was dropped by the conservative elders of the local church, who were key leaders of the movement. When I interviewed Colvin 20 years ago, she was just getting by as a nurses’ aide and living in the Bronx, all but forgotten.

And while what Parks did was a catalyst for resistance, the event that forced the segregationists to climb down wasn’t the work of one individual in a single moment, but the year-long collective efforts of African Americans in Montgomery who boycotted the buses – maids and gardeners who walked miles in sun and rain, despite intimidation, those who carpooled to get people where they needed to go, those who sacrificed their time and effort for the cause. The unknown soldiers of civil rights. These are the people who made it happen. Where is their statue? Where is their place in history? How easily and wilfully the main actors can be relegated to faceless extras.

I once interviewed the Uruguayan writer Eduardo Galeano, who confessed that his greatest fear was “that we are all suffering from amnesia”. Who, I asked, is responsible for this forgetfulness? “It’s not a person,” he explained. “It’s a system of power that is always deciding in the name of humanity who deserves to be remembered and who deserves to be forgotten … We are much more than we are told. We are much more beautiful.”

Statues cast a long shadow over that beauty and shroud the complexity even of the people they honour. Now, I love Rosa Parks. Not least because the story usually told about her is so far from who she was. She was not just a hapless woman who stumbled into history because she was tired and wanted to sit down. That was not the first time she had been thrown off a bus. “I had almost a life history of being rebellious against being mistreated against my colour,” she once said. She was also an activist, a feminist and a devotee of Malcolm X. “I don’t believe in gradualism or that whatever should be done for the better should take for ever to do,” she once said. 

Of course I want Parks to be remembered. Of course I want her to take her rightful place in history. All the less reason to diminish that memory by casting her in bronze and erecting her beyond memory.

So let us not burden future generations with the weight of our faulty memory and the lies of our partial mythology. Let us not put up the people we ostensibly cherish so that they can be forgotten and ignored. Let us elevate them, and others – in the curriculum, through scholarships and museums. Let us subject them to the critiques they deserve, which may convert them from inert models of their former selves to the complex, and often flawed, people that they were. Let us fight to embed the values of those we admire in our politics and our culture. Let’s cover their anniversaries in the media and set them in tests. But the last thing we should do is cover their likeness in concrete and set them in stone.

If the Wuhan lab-leak hypothesis is true, expect a political earthquake

 Thomas Frank in The Guardian


‘My own complacency on the matter was dynamited by the lab-leak essay that ran in the Bulletin of the Atomic Scientists earlier this month.’
‘My own complacency on the matter was dynamited by the lab-leak essay that ran in the Bulletin of the Atomic Scientists earlier this month.’ Photograph: Thomas Peter/Reuters
 

There was a time when the Covid pandemic seemed to confirm so many of our assumptions. It cast down the people we regarded as villains. It raised up those we thought were heroes. It prospered people who could shift easily to working from home even as it problematized the lives of those Trump voters living in the old economy.

Like all plagues, Covid often felt like the hand of God on earth, scourging the people for their sins against higher learning and visibly sorting the righteous from the unmasked wicked. “Respect science,” admonished our yard signs. And lo!, Covid came and forced us to do so, elevating our scientists to the highest seats of social authority, from where they banned assembly, commerce, and all the rest.

We cast blame so innocently in those days. We scolded at will. We knew who was right and we shook our heads to behold those in the wrong playing in their swimming pools and on the beach. It made perfect sense to us that Donald Trump, a politician we despised, could not grasp the situation, that he suggested people inject bleach, and that he was personally responsible for more than one super-spreading event. Reality itself punished leaders like him who refused to bow to expertise. The prestige news media even figured out a way to blame the worst death tolls on a system of organized ignorance they called “populism.”

But these days the consensus doesn’t consense quite as well as it used to. Now the media is filled with disturbing stories suggesting that Covid might have come — not from “populism” at all, but from a laboratory screw-up in Wuhan, China. You can feel the moral convulsions beginning as the question sets in: What if science itself is in some way culpable for all this?

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I am no expert on epidemics. Like everyone else I know, I spent the pandemic doing as I was told. A few months ago I even tried to talk a Fox News viewer out of believing in the lab-leak theory of Covid’s origins. The reason I did that is because the newspapers I read and the TV shows I watched had assured me on many occasions that the lab-leak theory wasn’t true, that it was a racist conspiracy theory, that only deluded Trumpists believed it, that it got infinite pants-on-fire ratings from the fact-checkers, and because (despite all my cynicism) I am the sort who has always trusted the mainstream news media.

My own complacency on the matter was dynamited by the lab-leak essay that ran in the Bulletin of the Atomic Scientists earlier this month; a few weeks later everyone from Doctor Fauci to President Biden is acknowledging that the lab-accident hypothesis might have some merit. We don’t know the real answer yet, and we probably will never know, but this is the moment to anticipate what such a finding might ultimately mean. What if this crazy story turns out to be true?

The answer is that this is the kind of thing that could obliterate the faith of millions. The last global disaster, the financial crisis of 2008, smashed people’s trust in the institutions of capitalism, in the myths of free trade and the New Economy, and eventually in the elites who ran both American political parties. 

In the years since (and for complicated reasons), liberal leaders have labored to remake themselves into defenders of professional rectitude and established legitimacy in nearly every field. In reaction to the fool Trump, liberalism made a sort of cult out of science, expertise, the university system, executive-branch “norms,” the “intelligence community,” the State Department, NGOs, the legacy news media, and the hierarchy of credentialed achievement in general.

Now here we are in the waning days of Disastrous Global Crisis #2. Covid is of course worse by many orders of magnitude than the mortgage meltdown — it has killed millions and ruined lives and disrupted the world economy far more extensively. Should it turn out that scientists and experts and NGOs, etc. are villains rather than heroes of this story, we may very well see the expert-worshiping values of modern liberalism go up in a fireball of public anger.

Consider the details of the story as we have learned them in the last few weeks:

  • Lab leaks happen. They aren’t the result of conspiracies: “a lab accident is an accident,” as Nathan Robinson points out; they happen all the time, in this country and in others, and people die from them.
  • There is evidence that the lab in question, which studies bat coronaviruses, may have been conducting what is called “gain of function” research, a dangerous innovation in which diseases are deliberately made more virulent. By the way, right-wingers didn’t dream up “gain of function”: all the cool virologists have been doing it (in this country and in others) even as the squares have been warning against it for years.
  • There are strong hints that some of the bat-virus research at the Wuhan lab was funded in part by the American national-medical establishment — which is to say, the lab-leak hypothesis doesn’t implicate China alone.
  • There seem to have been astonishing conflicts of interest among the people assigned to get to the bottom of it all, and (as we know from Enron and the housing bubble) conflicts of interest are always what trip up the well-credentialed professionals whom liberals insist we must all heed, honor, and obey.
  • The news media, in its zealous policing of the boundaries of the permissible, insisted that Russiagate was ever so true but that the lab-leak hypothesis was false false false, and woe unto anyone who dared disagree. Reporters gulped down whatever line was most flattering to the experts they were quoting and then insisted that it was 100% right and absolutely incontrovertible — that anything else was only unhinged Trumpist folly, that democracy dies when unbelievers get to speak, and so on.
  • The social media monopolies actually censored posts about the lab-leak hypothesis. Of course they did! Because we’re at war with misinformation, you know, and people need to be brought back to the true and correct faith — as agreed upon by experts.
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“Let us pray, now, for science,” intoned a New York Times columnist back at the beginning of the Covid pandemic. The title of his article laid down the foundational faith of Trump-era liberalism: “Coronavirus is What You Get When You Ignore Science.”

Ten months later, at the end of a scary article about the history of “gain of function” research and its possible role in the still ongoing Covid pandemic, Nicholson Baker wrote as follows: “This may be the great scientific meta-experiment of the 21st century. Could a world full of scientists do all kinds of reckless recombinant things with viral diseases for many years and successfully avoid a serious outbreak? The hypothesis was that, yes, it was doable. The risk was worth taking. There would be no pandemic.”

Except there was. If it does indeed turn out that the lab-leak hypothesis is the right explanation for how it began — that the common people of the world have been forced into a real-life lab experiment, at tremendous cost — there is a moral earthquake on the way.

Because if the hypothesis is right, it will soon start to dawn on people that our mistake was not insufficient reverence for scientists, or inadequate respect for expertise, or not enough censorship on Facebook. It was a failure to think critically about all of the above, to understand that there is no such thing as absolute expertise. Think of all the disasters of recent years: economic neoliberalism, destructive trade policies, the Iraq War, the housing bubble, banks that are “too big to fail,” mortgage-backed securities, the Hillary Clinton campaign of 2016 — all of these disasters brought to you by the total, self-assured unanimity of the highly educated people who are supposed to know what they’re doing, plus the total complacency of the highly educated people who are supposed to be supervising them.

Then again, maybe I am wrong to roll out all this speculation. Maybe the lab-leak hypothesis will be convincingly disproven. I certainly hope it is.

But even if it inches closer to being confirmed, we can guess what the next turn of the narrative will be. It was a “perfect storm,” the experts will say. Who coulda known? And besides (they will say), the origins of the pandemic don’t matter any more. Go back to sleep.