Lawson and Liberty Valance
I woke this morning to the sad news that Lord Lawson has died. In my few dealings with him he was utterly charming and obviously easily on top of his brief. Not things you can say about every Chancellor I have had dealings with.
The last time I saw him, many years ago, he was enjoying a family meal in a cafe near his home in France, and he looked like a very contented man. My thoughts are with his family and friends.
His political career is more difficult to access. It is certainly true that he performed a complete hand brake turn in post-war British politics and economic policies. But let us also admit that he made mistakes and his legacy is mixed.
For a start despite the claims ever since, taxes rose under Margaret Thatcher. What happened was a large shift from taxing income to expenditure and from taxing the rich heavily to taxing the poor. North Sea oil was spent on this and the unemployment that destroying British industry created.
Chancellor Lawson also cut headline taxes so far and so fast in the middle of a housing boom that he crashed the economy. Something even I saw coming as I delayed buying my first property until after the crash.
Talking of crashes, the Big Bang in the City was bound to lead to the credit crunch and it did. You cannot let the financial system self regulate and fill its boots, when the state and the tax payer is responsible for bailing it out.
However it is in helping to create an atmosphere where it is almost impossible to win election by pointing out that the economy needs a state that works and that means higher taxation, that Lord Lawson had his greatest influence. Not, I would argue, a positive benefit but that is his legacy and to many Tories a powerful, intellectually justified, agenda setting, election winning, legacy.
In the end whether the Lawson legacy has been a benefit or not to the UK will not matter. As in the film “The man who man shot Liberty Valance”, when the facts get in the way of the legend, you print the legend.
Lord Lawson, like his PM is now a Tory legend.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media