Neutrality matters: Bank of England

Neutrality matters: Bank of England

Ah yes, a blog about the Governor of the Bank of England, Andrew Bailey, and his comments on UK/EU relations. Procrastination at its finest—I’m dodging my other drafts because this feels more worth talking about. Andrew Bailey recently gave a speech at Mansion House about growth, and you can find the transcript here. The UK government has made growth a cornerstone of its platform. Without growth, we can’t have better public services.

There’s loads to say about this speech, but journalists have been a bit naughty by not publishing the full section that’s causing headlines. Here it is, quoted in full:

Now, as I have said many times, as a public official I take no position on Brexit per se. That’s important. But I do have to point out consequences. The changing trading relationship with the EU has weighed on the level of potential supply. The impact on trade seems to be more in goods than services, that is not particularly surprising to my mind. But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people.

But, we should not focus just on the effects of Brexit. The picture is now clouded by the impact of geopolitical shocks and the broader fragmentation of the world economy. I will own up to being an old-fashioned free trader at heart. It’s a British characteristic, I like to think. My point is this: amidst the important need to be alert to threats to economic security, let’s please remember the importance of openness. Openness is an important determinant of productivity. There is nothing new about saying this, just to be clear.

The first point is simple: Bailey should stick to speaking about policy matters and decisions delegated to him. That means avoiding topics reserved for the government. When officials break that norm, it increases the likelihood of political appointments—people chosen not for expertise but for their loyalty to the government’s messaging. For an independent central bank, this is a massive challenge to its independence.

This norm exists for a reason. If future governors are picked for loyalty over skill, the quality of decisions will decline, and the central bank’s independence could crumble entirely. It’s not just central bank governors—look at the USA right now. You’ve got people with no experience or expertise holding office because of loyalty. It’s a total mess. And if you want a closer-to-home example, think of UK magistrates. They often have no legal experience but still help run the legal system. That already causes massive miscarriages of justice. Now imagine amateurs running the state itself.

Such comments also risk fuelling resentment, which already exists in some political quarters. Remember Liz Truss? She called out Bailey for simply doing his job during the fallout of her mini-budget.

Bailey is, of course, right in what he’s saying, but urging the Chancellor to act isn’t his job. His role is to set monetary and financial policy as effectively as possible within the framework of government decisions. That’s already difficult enough. Just look at how the central bank had to step in to stabilise the financial system after Liz Truss’s mini-budget. That fiasco caused bond market turmoil, massive losses, and a serious hit to pension values.

The temptation to comment must be enormous, given the job and the platform it provides. Journalists are relentless in trying to get a juicy quote to spark drama. But, just like the King or Queen stays silent on politics, or a deputy coach avoids publicly criticising the head coach, central bank officials need to adhere to the principle of collective responsibility. For Americans, think of it like the Hatch Act. These norms exist for a reason: they prevent the government’s reputation and decision-making from being publicly undermined. Would you invest in a company where employees openly disagreed with the CEO? People can have different opinions, but sometimes, your role demands silence.

Bailey raises valid points, but he could’ve expressed them more diplomatically. Given how quickly journalists pounced on his remarks, it’s clear he should’ve said less—or nothing at all. Let’s be honest, most people don’t have the reading comprehension to fully understand his nuanced message. The Chancellor might do well to send Bailey a strongly worded letter reminding him where the line is.

As much as Bailey’s comments reflect valid concerns, the bigger issue here isn’t Brexit or even growth—it’s how we protect the independence of our institutions. Norms exist to safeguard against political interference, and when they’re ignored, trust erodes. We’re already seeing attacks on institutions and the resulting collapse of trust. The last few years have given us enough warning signs to know better. It’s worth reflecting: would you feel the same if it were someone with different views at the helm? Institutions thrive on neutrality, and we lose that at our peril.

Economics of Choice

Economics of Choice

Every small action, like a grain of sand, might seem insignificant on its own. But when many people act together, these small choices can reshape entire industries and even impact our environment. Consider how individual choices in food, fashion, and household products have led to widespread shifts over time.

Small Changes Lead to Big Trends

Take coffee, for example: when everyone starts buying a particular blend, it quickly becomes the most popular choice, and similar options soon flood the market. Or look at fashion—when an actor wears a certain outfit in a movie, it often sparks a trend, and suddenly, similar styles are everywhere. While one person’s actions may feel insignificant, when trends catch on, they can shift entire markets. For example, the rise of veganism has led to a surge in plant-based options. With more vegetarians, restaurants have moved from offering a single option to providing diverse, plant-based menu items.

Eco-Friendly Products

Deodorant is another example. Once, store shelves were dominated by aerosol-based deodorants. As people sought eco-friendly options, roll-ons became popular, and today, refillable and vegan options are mainstream. The cleaning aisle has seen similar changes, with refillable and reduced-plastic packaging now commonplace. A few years ago, I had to buy a full plastic bottle for floor cleaner; now, I can buy a smaller, eco-friendly refill packet.

Personally, I’ve transitioned to refillable products—from cleaning supplies to deodorant—and now use eco-friendly soaps for skincare and showering. With simple changes like just adding water, I can get the same cleaning results with less packaging. Switching to soap for my hygiene routine has left my skin feeling more hydrated, without the dryness that comes with other products. Now, I even have choices in eco-friendly deodorants with a variety of scents. While change can be slow, it’s steady. There are many ways to encourage new behaviours, whether through incentives, accessibility, or raising awareness. Economics essentially studies people making choices based on their environment, and many of these choices are made simply because they’re easier or more affordable.

Economic Trade-Offs and Industry Impact

However, these shifts often come with trade-offs. For example, as we use less oil for plastics, demand in the oil industry decreases, which can lead to job conflicts for those working in the field. Moving away from plastic packaging towards cardboard is another trend, but it requires more water and energy for production, which has its own environmental impact. As traditional retail faces challenges from the rise of online shopping, campaigns worldwide are proposing levies on online shopping to help protect jobs in physical retail. In response, some stores have blended elements of online shopping into their offerings—for instance, “click and collect” services allow people to research items online and view them in-store. These stores increasingly function like warehouses supported by vast logistics networks. The Covid pandemic accelerated this trend, and home delivery is now the standard for many shoppers. Even my razors now arrive directly at my door, and I can send them off for recycling.

Small Choices, Big Impact

Next time you’re making a choice—whether it’s about food, fashion, or an everyday product—remember that even small decisions add up. Every choice we make can contribute to a larger movement toward meaningful change. When I’m in the store, I find myself considering more than just price and quality these days—sometimes leading me to have a bit of a “staring contest” with a product as I weigh my choices.

The middle – US presidential election

The middle – US presidential election

The U.S. presidential election will take time to analyze as we wait for data to explain the outcome. I’ve posted some early, sleep-deprived thoughts here. Trump’s gains were widespread, so any explanations should start there. The incumbent’s party lost, following a familiar pattern—recent incumbents have often lost for similar reasons. Voters were fed up with high inflation, and the incumbent didn’t address their concerns. Here’s a chart showing global voting patterns, and another highlighting trends from the 2024 U.S. election.

Red Dawn

Trump didn’t just improve his margins in swing states; he made gains in Democratic strongholds too. Harris’s campaign managed to swim against very strong currents, losing by only a small margin in seven swing states. The swing fell within the polling error, which isn’t bad, but this defeat feels more significant than 2016. It’s a harsh loss that will demand a complete rethink and strategic response moving forward. The forces that put Trump in the White House could easily turn against him, but I wouldn’t bet on it. There’s a much deeper trend here—one that’s been building for years and has now solidified. Non-graduate voters shifting from Democrats to Republicans has been ongoing, but now, non-white working-class voters are following the path of their white counterparts. One positive: Black voters have largely remained loyal to the Democrats. A good starting point for analysis could be the working-class boroughs in New York City. This chart from Nate Silver illustrates the long-standing issue Democrats face.

Help!

It’s not that voters are in love with Trump or his policies—they just want him to fix inflation and the cost-of-living crisis. Many are deeply frustrated with the political system and the economy. Ironically, while Republicans have helped break the system, Democrats are taking the blame. Most people don’t follow politics closely; they care more about gas prices, eggs, and other essentials. It’s only when things get chaotic that they tune in. So, when Trump talked about gas prices, many voters turned out for him and tuned out the rest. Trump is still unpopular, and that’s a huge problem: if he oversteps his mandate—which he’s likely to—it’ll store up trouble down the line. His win isn’t a vindication; it’s about people wanting him to make them feel better off. Failing to deliver will cause issues, from policies that could trigger an inflationary spiral to deportations affecting people who never expected it to happen to them.

Twist and Shout

Smart Republicans should take note and avoid indulging their worst impulses. Like the Democrats, they’re likely to face internal conflicts—free-trade business interests versus protectionism, or the desire for social security programs versus cutting government spending. Billionaire libertarians and the highly educated elite want different things. Republican leaders without degrees have a stronger grasp of what the non-graduate majority feels and have tapped into that sentiment. Democrats could learn from their opponents, especially about how people consume news today. The far right now has a new breeding ground based on old ideas. Engaging in unfamiliar or even unfriendly spaces and fostering new media networks could be essential. The elephant in the room is disinformation and misinformation—Republicans have ruthlessly exploited this, along with the far right leaking ideas into the right mainstream.

Under the Waves

There’s also a chance for a reset here, with the next battle coming in just two years at the midterms. Time hasn’t stopped, and history hasn’t ended—it’s about getting back up after being knocked down. Rethinking is required to handle a political force like Trump. A fresh perspective is essential, but it’s going to be painful—a real catch-22. Polarisation among educated voters makes shifting rightward on some issues challenging. “Sacred cows” that are non-negotiable leave many voters thinking, “You don’t speak for me.” As a British progressive, I can say this is incredibly painful and a global challenge for centre-left parties. Failing to deliver what voters want could quickly turn the tide, but that won’t solve the larger problem. After three straight defeats over 14 years, the UK Labour Party came back from its worst defeat to its largest majority by ditching several unpopular stances and making changes. Nothing is set in stone.

We also won’t know turnout details for a while or whether voters switched allegiances or simply stayed home, feeling torn between Trump and Harris.

Owner of a Lonely Heart

Expanding on the Labour Party example, Democrats can make a comeback too, but it will require hard work and a deep understanding of the challenge ahead. To put it another way—didn’t Republicans make a massive comeback after Obama? My heart breaks with you; the grief will take time to process. Rebuilding won’t be easy, and it will require some genuinely painful compromises. Talk to Republicans about how much they had to change with Trump. Political apathy will only give Trump and his allies more power—they’re counting on it, and with the level of grief you’re likely feeling now, losing trust in the process makes sense. I know what that feels like. As I said earlier, it’s going to require a shift in perspective and some serious rethinking.

Sense of Direction

Ignoring legitimate grievances is how we got here. Trying to shame people won’t help your cause. Labeling people as racists or fascists won’t stop them from voting for far-right nationalist parties. So maybe it’s time to focus on listening to them. Speaking of which, moderates fared far better than others. Calling people “garbage” only causes them to shut down before you can even speak. I speak from experience on that. I don’t have all the answers, and frankly, it’s going to take time before anyone does. The worst thing you can do is double down on a failed approach.

Don’t Look Back in Anger

Defiance and resilience are needed. Let’s avoid hyperbole and over-the-top rhetoric. Yes, tensions are high, and so is fear, but we should treat each other with kindness. Actions speak louder than words, and America could use some kindness right now.

Lost in the Echo

The hard truth is that the Democratic Party has failed to speak to voters in a straightforward way. This was a party failure, not a single person’s fault—not Biden’s or Harris’s alone. The party focused on news channels most ordinary people don’t watch and disconnected itself from the pulse of American life. Closing note: everything will be okay, if you listen to the message voters have just sent.

I may have included some song references in this blog post. See if you can spot them.

Stream of Thoughts on US Election 2024

Stream of Thoughts on US Election 2024

Writing this at 7 a.m., still on an empty stomach, so this will be a bit of a ramble. We’re seeing incumbents around the world facing losses. It’s all down to them being in power through the COVID mess and the inflation that followed. Some have barely clung to their majorities, and others have been completely booted out. That’s a point that tends to get lost in a lot of the analysis, which is always about the campaigns rather than the real underlying issues.

Take the U.S. – people are angry over high prices for basic stuff like eggs and still haven’t adjusted. No wonder it looks bad for Harris or any candidate who seems tied to the current state of things. Another big factor here is the loss of status among men without degrees. There was a time when men were the main earners, but those days are gone, and the role’s shifted. A lot of men are dealing with this identity crisis and swinging to the right, leaning on a more traditional outlook. In American politics, inflation anger is centre stage, but you can’t ignore the undercurrent of this cultural shift.

Then there’s Trump. The irony is he’s likely to drive inflation too, but he still comes across as the “change” guy, which appeals to people feeling low after a couple of rough years. This race isn’t over yet; it’s neck-and-neck. People are acting like we’ve already seen the end result, but nothing’s been called just yet. We’re in this weird time of change, so let’s be kind to each other. Things are tense, and there’s going to be a lot of fear for a while, but we should be sticking close, comforting each other. It’s going to be okay – America’s been through worse.

Whatever happens tonight, it’s going to be historic. So, fasten your seat belts – yes, that’s a song reference for the drum and bass fans. I really hope America doesn’t relapse, but it’s worth understanding that voters’ grievances, even if they’re blaming Biden or Harris unfairly, are legitimate. Let’s avoid hyperbole and over-the-top rhetoric. Yes, tensions are high along with fear, but we should treat each other with kindness. Actions speak louder than words, and America could use some comfort right now.

On Fairness, Accountability, and the Problem with Bias

On Fairness, Accountability, and the Problem with Bias

The disclaimer on the blog post inspired me to read The Secret Barrister: Stories of the Law and How It’s Broken. I haven’t yet finished reading it, but it’s already had me reflecting on accountability, fairness, and the impact of bias in how we judge others.

For me, individuals should be accountable for their actions, and that should remain the overriding consideration. When bias enters the equation, it raises the bar unfairly for some and creates massive space for miscarriages of justice. It’s frightening to think that someone could be deemed guilty just by being in the wrong place at the wrong time. Worse still, unchecked bias can corrode trust and damage reputations. When there’s already a preconception against someone, how can the system claim to be fair?

Let me give an example. Imagine a politician releases misleading information. Are the people around them, who choose not to push back, equally responsible? Or is the platform that publishes the information at fault simply for association? What about those responding to the information—should they be morally responsible for fact-checking it? And if someone commits a crime, is everyone connected to them morally accountable, even if they had nothing to do with it?

Would we want to be judged by the actions of others, especially those we have no control over? It’s easy to see the appeal of this “guilt by association” approach, but consider yourself in their shoes. The problem, as I see it, is that many people rarely interact with certain groups and therefore assume that “bad actions” result from people simply being “bad.” This view often ignores the social failures that lead up to those moments. It’s like blaming a dam for bursting but ignoring the long-term changes in the river’s path or the increased rainfall leading up to the event.

When we paint everyone with the same brush, we risk repeating the mistakes of the past. As a society, we’re not yet ready to answer complex questions about prejudice when social injustice remains so high. People aren’t born “bad”; we’re all just one poor decision away from doing something we may regret.

From personal experience, I know there have been times I didn’t call out certain behaviours, and I’m still working on that. I’ve often felt uncomfortable or unsure of myself, and I shouldn’t be judged for this hesitation—only for my own actions. We all make mistakes, and we should be held to account for those, not for the actions of others.

So, as we judge others, let’s also reflect on the standards of fairness we apply. Are we looking at each person as they truly are, or are we holding them accountable for things beyond their control? The difference might seem subtle, but it’s fundamental to justice and to how we see each other.

Polling and the Weather Forecast: A Lesson in Uncertainty

Polling and the Weather Forecast: A Lesson in Uncertainty

Polling is like the weather forecast: it offers a range of outcomes. It may seem unlikely to rain where you are, but it’s still possible, just as somewhere nearby could stay completely dry. Polling models work the same way, providing a range of possibilities, with the most likely outcome somewhere in the middle. However, journalists often don’t report or explain this range, and some polling companies don’t fully address it either.

When the herd (the electorate) moves, it usually moves together—yet occasionally, it splinters, adding layers of uncertainty. This unpredictability is what allows people to sometimes defy the odds and come out on top. The margin of error means the actual result could land on either side of the median outcome or even on the outer edges of what’s possible. Think of it as science fiction: in The Hitchhiker’s Guide to the Galaxy, when travelling across space, you might theoretically turn into an apple. Highly unlikely, but technically possible!

What Do the Current US Election Models Tell Us?

So, how does this translate to the current U.S. election landscape?

The current model from FiveThirtyEight has Harris at 268 electoral votes and Trump at 270. Just a few days ago, it was the other way around. It’s a remarkably close race, one we haven’t seen for decades. In practice, this means the herd is taking different paths, with some states following separate trajectories from others. Why? This could be due to local issues or unique demographics at play, which are often difficult to model accurately.

Certain demographic and local factors influence swing states differently, adding complexity to polling models. For example, Arizona’s growing Latino voter base leans conservative in some areas, potentially benefiting Trump. Meanwhile, Pennsylvania’s situation is unique, with its declining manufacturing jobs and large Arab population possibly making it more competitive. In other states, recent events or changing demographics play a big role; a hurricane’s impact on voters or a high Black population could sway support towards Harris, especially given her profile as a Black female candidate. Each of these factors highlights why swing states can defy broader polling expectations and swing differently depending on local issues.

The Swing State Landscape and Possible Outcomes

Based on current numbers, swing states could align—or they might diverge entirely. Swing voters typically follow similar trends, but today’s models suggest they’re all over the place. The final result could be a landslide, a narrow victory, or a razor-thin margin. The most unlikely outcome is a tie, which would be decided by Congress. The only time this happened was in 1800, between Thomas Jefferson and Aaron Burr.

In practical terms, we could see anything between 320 and 270 electoral votes for either side, making predictions a toss-up due to how close it is. And despite the possible range of outcomes, most commentary doesn’t explore these diverse possibilities in-depth, though they should.

Swing states, which often switch between the two main parties, are pivotal in deciding elections. These states can shift as demographics evolve—much like music tastes changing over time. Currently, there are seven key swing states: Arizona, Georgia, Michigan, Pennsylvania, Wisconsin, North Carolina, and Nevada. Pennsylvania holds the biggest prize in terms of electoral college votes, which is why it’s often rated the most crucial.

At the moment, Harris has more paths to the White House than Trump. In fact, nine out of twenty-one possible routes for Harris don’t require Pennsylvania, whereas only five out of twenty-one for Trump don’t need Pennsylvania. Care to guess the tipping point state?

Current polls suggest a 51-56% chance of Trump winning and a 49-45% chance for Harris. This modelling assumes only seven states are in play. I’d say Harris has the advantage based on the seven swing states, yet betting on either side winning is difficult due to the close margins. The only thing we know for certain is that results may not be known for days if trends follow recent averages. The final outcome will either take one candidate to the White House or the jailhouse—but we’re likely heading to the courtroom first.

In a race this close, every voice truly counts. So, whatever the forecast, cast your vote—because, in the end, even a small shift in the herd can tip the balance.

America and British politics what the differences?

America and British politics what the differences?

American politics feels rather alien to me, with extreme levels of partisanship. Cooperation is dying, replaced by a desire to vote only along party lines. Why is that? I’ll come back to that later. The total control of two parties over the political system makes it nearly impossible for anyone else to break in. Political appointments cover every level of the executive, including the courts. The Supreme Court now has a Christian conservative supermajority, and courts overall lean conservative, shaping the justice system in profound ways. Not only that, but the parties also control the writing of election rules and, by design, make it difficult for anyone outside the two main parties to get on the ballot. This level of control lets them game the system in their favour, using gerrymandering to manipulate district boundaries. It’s all about packing voters who don’t support you into one district while splitting others to maximise your own chances. Urban and city areas, which should have more representation due to larger populations, are ignored. As a result, more attention is given to the small minority who could deselect you rather than the loyal base who will vote for you anyway.

Given the size of America, the amount of money spent on election cycles is staggering. Both Harris and Trump combined are projected to spend somewhere around $15.9 billion. Then there’s the religious influence, which holds considerable power in what’s supposed to be a secular country. Christian conservatives on the Supreme Court are pushing their ideological views, particularly on issues like abortion. Christian nationalism has gone mainstream on the right side of American politics. Some are pushing to change that, linking the church to the state and dismantling the secular order. Briefly, these are some of the things that make the system feel strange and distant to me.

Compared to British politics, while the two main parties hold sway, it’s not total control. The number of voters with strong partisan views is declining rapidly. Cooperation still exists, even in a winner-takes-all system, and people don’t always vote along party lines. Other parties have a real shot—currently, the UK has four major political parties. The last election saw a range of parties perform well across the country. There are far fewer barriers stopping new parties or individuals from standing. In the last hundred years, we’ve gone from two major parties to three, then four, and arguably five if you count certain regional parties. You could even say we have five and a half major players now. These include the Conservatives, Labour, Liberal Democrats, Reform, and the Greens, plus regional parties like the SNP and Plaid Cymru. The last two are nationalist parties with significant regional influence. After the 2024 election, independent candidates have risen due to the cynicism embedded in politics. While smaller parties still struggle with funding, local campaigns have been successful.

The newest party on the block runs in as many constituencies as possible to maximise funding and target winnable seats. Speaking of funding, the UK has strict limits—you can only spend around £34 million ($44 million). Political appointments are often cross-party, and the courts maintain their independence. Privately educated individuals do make up the majority in certain professions like the courts or media. Certain areas remain separate from the executive altogether. When it comes to writing the rules for elections, parties actually talk to each other and reach an agreement. And on that note, electoral boundaries are out of politicians’ hands, managed by independent bodies. Boundaries are based on population size and are equalised across the board.

We Brits have a sense of fair play, though I’ll admit there have been recent attempts to undermine that, with tactics like voter ID. Voters will remember rule-breaking and breaching that spirit of fair play. As for religious influence, the only real presence left is in the House of Lords, and even that’s weakening. Some on the right have tried to push a Christian viewpoint, but that largely goes against public opinion. The UK is largely secular these days, with the number of people identifying with religion in steady decline. Bishops in the Lords act as a moral voice, but in practice, they don’t have enough votes to swing decisions.

We may share the same language (sort of), but the differences in how we approach politics even show in how we run elections. In the US, elections seem like an unending cycle. Campaigning starts years in advance, dominating political life. Debates, attack ads, constant rallies, and endless streams of fundraising—it’s like a political marathon that never ends. In contrast, here in the UK, elections are much more condensed and far less consuming. Campaigns last about six weeks from the moment Parliament is dissolved to election day. None of this dragging it out for two years or more. It’s a sprint, not a marathon, and frankly, I think most of us prefer it that way.

And then there’s how we count votes. In the US, it’s like a patchwork quilt—some states use electronic voting, others rely on paper ballots, and each state seems to have its own rules on how and when to count them. Here, it’s much simpler. Everyone follows the same rules: paper ballots, counted on the night, with results typically announced by the next morning. None of this drawn-out waiting, recounts, or legal battles that drag on for weeks. We’ve streamlined it to the point that the system, while not flawless, works efficiently. Results are declared on the night, with no provisional votes hanging over our heads for days.

There’s even a sense of theatre when it comes to declaring results. Unlike in the US, where numbers trickle in and results are announced gradually, here, all the candidates stand together on stage as the result is read out. It makes for some pretty unforgettable moments in British political history—triumph and defeat all wrapped up in a single scene. You’d be hard-pressed to find an American election night with quite that much drama in one room.

I know one American friend will be reading this and spilling their coffee! But honestly, the differences are staggering. Small, minor differences add up pretty quickly to a completely different climate. That leaves us with two final differences: first, the timing of elections in the UK is in the hands of the prime minister, compared to the US presidential election being locked in place and unable to be changed. The final point is how centralised the UK system is—local government is far weaker compared to America. They lack the ability to raise revenue and so many other powers. In America, even cities can borrow money and raise taxes. After decades of weak local government, this is slowly starting to change in the UK.

So why did I write this blog? Well, I wanted to expand on a conversation I had with a friend and reflect on the nuanced differences between both systems. Often, these differences are missing in American and British media analysis. It comes from a point of view that ignores the contrasts, trying to make the systems mirror images of one another. That’s what I would consider lazy journalism and uninformed. Like in America, it’s still a rich man’s game in politics, but we’re just less flashy with the cash.

US presidential election 2024

US Presidential Election 2024

The US presidential election is only 17 days away. Polls show the race is neck and neck, but it could go either way within the margin of error. It’s shaping up to be one of the closest elections in history, with just seven swing states — the lowest number in recent memory — determining the outcome.

Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin.

AZ, GA, and NC lean towards Republicans, while MN, NV, PA, and WI lean towards Democrats.

America is deeply polarised between the two major parties, which hold an unbreakable majority. The result has been a dysfunctional executive, with Congress deadlocked and unable to fulfil its role. Other parts of the executive branch have become increasingly important.

Why is the race so close?

The aftereffects of the COVID pandemic have made Biden unpopular. The economic impact has resulted in higher inflation due to pent-up demand, and the Federal Reserve’s response has been to raise interest rates in an effort to curb inflation. Money given to people during the pandemic helped boost demand, further driving inflation. The economy was booming, with employment near record highs, when these factors began to take effect.

Biden has become unpopular due to the rise in inflation and interest rates, both of which are being blamed on him. Harris, as his vice president, is also being held accountable. She is positioning herself as the candidate for change, and with good reason. Trump, on the other hand, is benefiting from voters’ frustration and anger. However, he faces challenges regarding his age, his felony charges, and his continued claims that the 2020 election was stolen. His behaviour and mental capacity are causing him difficulties when compared to a much younger Harris.

In the background, demographic changes across various states are having an impact. People are moving to red states and turning them blue, and the opposite is happening elsewhere. Certain ethnic groups of voters have shifted their voting patterns. These small changes in polarised American politics are enough to create significant waves. It’s worth briefly noting that polarised politics means less crossover voting, which causes huge problems for control of the Senate and Congress, especially when combined with gerrymandering to favour one party. Who controls the executive at state levels has become hugely significant. The result is that American politics has become deeply dysfunctional, and major problems remain unsolved. As it stands right now, the race is too close to call.

Prepare for the worst, hope for the best. So far, Europe and the rest of the world are not preparing, instead choosing to ignore the situation. A few of Trump’s comments should be raising alarm bells, particularly his unwillingness to commit to defending NATO countries — a serious concern. European security is at genuine risk, and that’s just the beginning of the problems. His comments about starting a trade war with Europe should be ringing alarm bells as well. Everything he’s been saying should be cause for concern. Not just concern but making him unfit to be president.

The world waits for the outcome of the November election, and the result will be historic: the first female Black president or a felon entering the White House.

Israel and Palestine Conflict Revisited: One Year After October 7th

Israel and Palestine Conflict Revisited: One Year After October 7th

The Israel and Palestine conflict rages on without a solution. The war against Hamas, in response to the October 7th attacks, has devastated Gaza, while violence in the West Bank remains underreported. The Palestinian people have suffered greatly, not just in Gaza but also in the West Bank. Gaza is under a blockade, with 60% of its buildings destroyed or damaged. Core infrastructure, including water supplies, has been severely affected, further restricting essential services. The risk of famine in Gaza remains high. The situation in the West Bank, while less severe, is still alarming. Jewish settlers have been attacking defenseless villagers, sabotaging farms, engaging in harassment and violence, and attempting to displace people from their homes. This violence includes the murder of civilians and the demolition of homes with state approval. Despite these issues, global attention has largely focused on Gaza, leaving the West Bank’s struggles unnoticed.

The humanitarian impact breaks my heart. Hearing stories of people unable to feed themselves, lacking shelter, or of how people were injured is devastating. Children playing in the streets have been hit by sniper fire. Entire families have been wiped out by airstrikes. The reports are horrifying, and I’ve started to grow numb to them. Journalists and aid workers have been murdered for reporting on the war. The conflict remains largely closed off, with very few granted free access.

Gaza

The aim to destroy Hamas has failed, as Israel has leveled Gaza, yet Hamas remains. Its leadership has hidden within a vast tunnel network, making them moving targets that can’t easily be found. It’s a game of cat and mouse, with guerrilla warfare being waged against Israeli troops trying to clear the tunnels. It has been clear for some time that hostages are no longer the primary concern, and the threshold for acceptable civilian damage has shifted. Hostages are now leverage, not to be given away without something significant in return. A two-state solution seems impossible when everyone is moving the goalposts, and trust is at an all-time low. After so much blood has been spilled, no one is willing to make a deal.

The only bit of good news is that a regional war has been avoided so far. Hamas leadership hoped that, after October 7th, Hezbollah and other allies would launch a full-scale war against Israel, yet only minor escalations have occurred. Everyone seems to be responding in some way but avoiding an all-out war. The situation feels like a powder keg, with everyone lighting matches and setting off fireworks at each other. While the state of Israel is unlikely to be destroyed, it has become increasingly isolated on the global stage.

Hezbollah and the North

Attention has now shifted north toward Hezbollah, another Iranian-backed group in Lebanon. Unable to fully defeat Hamas, Israel has degraded them enough that its next focus appears to be Hezbollah. Rocket strikes into northern Israel have caused people to flee border areas. Despite Lebanon’s status as a failed state, Hezbollah is considered the strongest and most well-armed threat. Israel has targeted Hezbollah leadership by sabotaging their communication network and following up with airstrikes. The aim is to escalate in order to de-escalate, forcing Hezbollah into a deal. The goal seems to be dismantling Iran’s “axis of resistance” one group at a time. It’s unclear whether Iran itself will be the next target, possibly with Trump’s return to influence. Israel’s actions have left it isolated, as international opinion continues to turn against it.

Arab states have refused to work on normalizing relations until the war is over. European allies have strongly condemned Israel, and in some cases, voted to recognize the state of Palestine. Only the Americans have remained firmly on Israel’s side, though even they are questioning and growing frustrated. Some, including the British, have blocked arms exports to Israel. All sides are increasingly concerned about post-war plans, with ideas floated such as displacing people into the Egyptian desert.

Iran

Iran’s long-term goal is to reduce or remove American influence from the region. Over the last couple of decades, Iran has targeted American allies, and it also wants to destroy the state of Israel, which has aggressively pushed back. For now, Iran has kept its distance from the conflict. Both are powerful actors, but neither has the ability to destroy the other outright. They are trading blows using proxy forces under the united banner of the “axis of resistance.” However, the groups within this axis have different goals and ideas.

If tensions with Iran escalate further, we could see Israel and Iran engaging in more direct attacks. The risk of a war between the two sides looms, with the possibility of a single miscalculation setting off a conflict. It’s hard to predict what that would look like. A war would put the U.S. in a tricky position, especially since Trump has unfinished business with Iran. Trump, entangled in legal battles, has revealed Pentagon plans to attack Iran, and Iranian hackers have targeted his campaign as an act of vengeance for the assassination of Qasem Soleimani, which Trump ordered.

When you consider the geopolitical complexities, the situation becomes even more tangled. Powers in the Middle East—America, Russia, Iran, Israel, Saudi Arabia, Egypt, Turkey, and Qatar—all have different views and goals. Arab states are divided on how to act, especially those allied with the U.S., who fear Iran’s growing influence.

The interconnected conflicts of the Middle East have added yet another chapter to this war. A year after October 7th, we have seen one deadly gamble after another. The conflict in Gaza has turned into a stalemate, while in the West Bank, Israel has the upper hand with settlers driving people out. Peace is a distant dream, and the Palestinian people are being forgotten. Now, as attention shifts toward Hezbollah, the biggest threat to Israel may lie within, as extremist settlers appear to have gained control of the nation’s future. This paints a bleak picture for both Israel and the Middle East, leaving me feeling uncomfortable and deeply sad.

Labour budget dilemma

Labour’s Budget Dilemma

The UK Labour Party is grappling with a significant budgetary challenge. While there is widespread agreement on the need to increase public spending to repair public services, there is no consensus on who should bear the cost. The economy is currently operating at maximum capacity, meaning any increase in spending without corresponding tax hikes would lead to inflation. Higher taxes are not just about raising revenue but are necessary to free up resources. However, this solution is unpopular and risks destroying jobs. It could also reduce consumer spending, particularly in sectors with high productivity growth due to intense competition for labour. Redirecting that labour towards the public sector, which has struggled with low productivity in recent years, is a troubling prospect given the UK’s lacklustre productivity growth.

When people shift from consuming goods and services to investing in assets to protect their gains, other negative consequences emerge. A reduction in consumer spending could create economic “doom loops.” There’s already a pervasive sense that high streets are dying, giving many areas a bleak, stagnant vibe. This is dangerous both economically and politically. Economic stagnation breeds intolerance and reactionary politics, fostering support for far-right movements among disillusioned voters. The ability to spend hard-earned money outside the home is a key factor in personal happiness. The post-COVID surge in spending at shops and pubs highlights this, as people sought to regain a sense of normalcy and joy.

This helps explain why the UK has settled on a tax-to-GDP ratio of 37%, with little appetite for increasing it. Higher taxes come with trade-offs that the public has been unwilling to accept. Taxing the rich won’t solve the core issue of freeing up resources for the public sector, though I wish it would, out of a sense of social justice.

But this leads to a critical question: Are we, as a society, ready to make the sacrifices needed for better public services, even if it means paying more in taxes?

The Path Forward

The solutions lie in raising the inflation target to better reflect economic realities and boosting productivity. The public sector, particularly the NHS, needs real capital investment to become more efficient—better computers, rebuilt hospitals, and modern infrastructure. For example, investing in modern healthcare technology could shorten waiting times and improve patient outcomes. Hospitals built with better infrastructure would also become more energy-efficient, saving long-term operational costs.

Planning reform is a good start, but we need to shift taxes from income to land, among other reforms. A land value tax, for example, could encourage the productive use of land and help tackle the housing crisis. However, these changes will be fiercely opposed by vested interests who benefit from the current system.

Another challenge is reallocating labour in a more efficient economy, which could mean the disappearance of tens of thousands of jobs. These workers would need support while transitioning to new employment, and not just “bullshit jobs” created by overly complicated systems propped up by tax breaks. Simplifying the tax code would provoke fierce resistance from those with a stake in the current system. Redirecting labour will require targeted, specific measures—not broad-brush solutions.

How can we ensure that workers in obsolete or inefficient industries are given the support and retraining they need? This is where government policy must be proactive, not reactive. Without adequate support, we risk creating a new wave of economic and political dissatisfaction.

The Core Problem

So far, the government has shown little interest in tackling the vested interests that resist raising productivity. This leaves higher taxes as the only option, with the accompanying risk of fueling far-right sentiment. If Labour is to succeed in its mission and counter the rise of the far right, it must rethink its approach. Addressing the most problematic aspects of capitalism is necessary—not just as a matter of left-wing idealism but as a pragmatic strategy. The political right has been co-opted by landlords and predatory, reactionary capitalism.

While Labour must act decisively, it also needs to frame its efforts as a step toward a more equitable and functional economy. Yes, reform will be difficult, and opposition from powerful vested interests is inevitable, but change is not only possible—it is essential.

Is it not time for a government that puts the long-term well-being of its people above short-term gains?

Conclusion

The UK faces a crossroads. The budget dilemma Labour grapples with is emblematic of deeper systemic issues—stagnant productivity, growing inequality, and a political landscape susceptible to far-right sentiment. Raising taxes, increasing public spending, and improving services aren’t easy choices, but they are necessary steps toward a more sustainable future.

The challenge is not just about managing the economy—it’s about confronting the vested interests that have for too long blocked meaningful reform. Labour must be bold in its vision, but also pragmatic in how it implements change. Tackling inefficiencies in the public sector, reallocating labor, and modernizing the tax system are all achievable with the right political will.

Ultimately, the public must be persuaded that short-term sacrifices, like higher taxes, are worth the long-term benefits—better public services, more meaningful jobs, and a more just society. Failure to act now will only deepen the cycle of stagnation and discontent, further empowering reactionary forces.

As the UK stands at this pivotal moment, the question becomes: Will we choose progress and shared prosperity, or continue down a path of economic decline and political instability?

Labour has the opportunity—and the responsibility—to steer the country toward a more hopeful future. The time to act is now.