The words “left” and “right” are no longer of real significance.

Some people still do not understand that the debt burden in Britain and across the industrialised world is so large that it cannot be paid down. The belief persists that if taxes on the rich could be raised a bit more, that would fix it. But, even if all citizens were taxed 100% of their income, the debt burden would still surpass the income. Therefore, there is no longer a very fruitful debate to be had between the “left” and the “right”. The bigger question is: what is the appropriate relationship between the citizen and the state?

After all, there is always the social contract that governs this relationship. Citizens abide by the law and pay taxes but expect the state to deliver certain outcomes in exchange. They expect a police force, a military, a certain level of universal education and a health system. What the financial crisis revealed was that the state has been over-promising for some time, possibly over the last two centuries. Those on the “left” want to believe that somehow there is a way to close tax loopholes, increase tax collection and thereby make ends meet. Those on the “right” want to believe that somehow markets can deliver enough growth and raise GDP to grow our way out of the malaise.