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6 May 2020

Capitalism after coronavirus

In the latest in our new series on the consequences of the crisis, a distinguished economist makes the case for a new political settlement.

By Paul Collier

The coronavirus-triggered crisis, combining a health emergency with an economic collapse, is the biggest shock to Britain since the Second World War. Moreover, it coincides with a rare moment in British politics when both parties have a structural opportunity to reset themselves.

We should remind ourselves that only a year ago we faced the daily nightmare of Jeremy Corbyn versus Theresa May: the two worst party leaders since 1940. The transformation for the better in British politics is extraordinary. In the Labour Party, the hard left could not avoid responsibility for Labour’s crushing electoral defeat, and its ringmasters have been swept away. Not only is the party expecting change, but with his decisive leadership victory, Keir Starmer has the power to deliver it. Similarly, the Conservatives first ejected Theresa May, followed by Boris Johnson’s high-risk strategy of ousting the established order of Philip Hammond and Jeremy Hunt, which was rewarded with a decisive election victory. Both parties had been bitterly divided, and in both, the internal opposition has won an election.

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