Bad economics, bad politics – Britain’s policy towards Syrian refugees

There has been an ongoing public debate in Britain about what the country’s policy should be towards the refugees arriving in Europe from Syria and other war torn countries. The consensus is that our Prime Minister’s response has been determined by the hatred expressed for refugees in the popular media and fear of losing votes to the anti immigration party (UKIP). However there is another compelling reason as to why our Prime Minister is so opposed to Britain taking its fair share of the immigrant population now arriving in Europe and that is bad economics. This government has claimed the mantle of fiscal probity and as such is committed to keeping public spending to minimal levels. If the government admitted large numbers of refugees to the country it would be committed to increasing it’s spending. Much of that increase would go to local authorities (to house the refugees) just at a time when the government is committed to reducing their budgets. It is fear of breaking its fiscal rules that prevents it from admitting these refugees.

The government has as a consequence made a pig’s ear of its policy and produced a immigration policy that will please no one. It has made a commitment to admit 20,000 refugees over five years or 4000 a year on average. This will be financed from the foreign aid budget, money that would otherwise be spent in developing countries will instead be used to finance the accommodation needs a modest number of refugees for one year. After that the councils will have to fund from their much reduced budget all the extra services that these new arrivals will require.

What the government fails to understand is that economics is unsuited to providing policy goals at what can be called the ‘summum bonum’ policy level. Economics is a servant subject a subject that when used correctly determines the feasibility of government policy proposals, it cannot provide the grand objectives that determine all policy decisions. The object of economic policy making is to set intermediate goals whose attainment will make possible the attainment of the greater goals of universal policy making. This government has reversed this process, the grand overall objective is to attain a budget surplus, whereas good economics would demonstrate how to or whether an open door policy to refugees is economically feasible. If this government is trying to disguise its greater policy goal of keeping Britain a predominantly white non-muslim country through rejecting these immigrants, this would count as a greater policy goal.

What I am trying to state is that economics is a terrible subject for providing the greater goals that should be at the heart of any government policy making, that is the role of ethics or political philosophy and economics should not intrude areas into which it is unfitted. Formerly the conservative party was a practitioner of “One Nation Toryism”, a philosophy that stated while the aristocracy, financial and industrial elites were best fitted and entitled to rule, they owed an obligation of care to the lower orders of society. This is why the Conservative party of the 1950’s was able to embrace the National Heath Service and full employment. Now the vision of the Conservative party has shrunk to accommodate the goals and principals of Neo-Liberal economics, which can offer nothing more than series of lower order objectives. The philosophy of Ayn Rand dominates this government, a government that like her sees the lower orders of society as nothing more than a drain on the nation’s resources. While the only people it see’s as demanding of respect are the giants of business and finance. These people it rewards with generous tax allowances and government grants. Hume, Oakshott and all the great conservative philosophers of the past would despair of a government that only had good housekeeping as the only summum bonus of its policy making. Minimal government of the sort practised by this government makes for ineffective and bad government.

The folly of an economics first policy is demonstrated by the government’s policy towards Syria. It is now proposing armed intervention to end the current conflict so as to halt the flow of refugees from that country, yet its policy of budget cuts have denied it the means to make any effective intervention. The cuts have reduced the fighter bomb force to a total of six planes and its cuts to the army budget have made it impossible for the army to make any effective contribution to any overseas conflict through lack of resources. Realism demands that the policy becomes not one of intervention but one of appealing to other countries to fight the battle on Britain’s behalf, not the most effective of policies.


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