Author: Lew

I call myself a sensible moderate, but not in the same way Peter Dunne does.
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Big Vehicle

The matters I discussed in the previous post to do with reality-adjacent campaigning are about targeting voters with messages they can grok about issues they care about. But empiricism is not much good for deciding a party’s ideological values or for developing policy. Parties made up of committed ideologues remain indispensable for that reason.

As is often pointed out to me, I am not such a person. I have never been a member of a party, nor involved in a campaign, and I have little desire to do either. For some people this means I obviously don’t know what I’m talking about; fair enough. As an analyst, I prefer the outsider’s perspective. I don’t feel any pressure to be loyal to bad ideas or habits, and I try to answer only to the evidence. Ironically, though, there isn’t much hard evidence for the arguments I’m about to make about the medium-term future of the NZ left. Nobody has any. It’s value-judgements all the way down. So my reckons are as good as anyone else’s, right?

“That doctrine of the Little Vehicle of yours will never bring the dead to rebirth; it’s only good enough for a vulgar sort of enlightenment. Now I have the Three Stores of the Buddha’s Law of the Great Vehicle that will raise the dead up to Heaven, deliver sufferers from their torments, and free souls from the eternal coming and going.”
— Bodhisattva Guanyin, Journey to the West

For mine, the major shift from the 2014 election — apart from the unprecedented dominance of the National party — is away from Small Vehicle politics and towards Big Vehicle politics. Only National and NZ First gained modestly. All other parties all failed to meet the threshold or lost support. The destruction of Internet MANA and the failure of a much-improved Conservative party demonstrates that there is no tolerance for insurgency, and the cuts to Labour and the Greens indicates that any confusion or hinted shenanigans will be brutally punished. National can govern alone; it is including ACT, United Future and the Māori Party as a courtesy, and to provide cover. This is Key’s money term. It should be a period of grand political themes and broad gestures, and the left needs to attune itself to this reality: Labour needs to take the responsibility of being a mass movement with broad appeal and capability; a Big Vehicle. The Greens will hopefully get bigger, but I think they will remain a Small Vehicle, appealing to relatively narrow interests, however important they are.

Assuming it doesn’t annihilate itself utterly in the coming weeks, Labour will be the core of any future left-wing government, but the strategies that served it poorly as a substantial party of opposition will be utterly untenable in its diminished state. Throughout most of the past six years, Labour has been the party opposed to National. They haven’t been a party that clearly stands for anything, that projects the sort of self-belief that National, the Greens, and even NZ First does.

Labour therefore needs to re-orient its conduct and messaging to its core values, and those are fundamentally about secure and prosperous jobs for the majority of working people, and those who rely on the state as the provider of last resort. But I am emphatically not calling for a retreat to doctrinaire materialism at the expense of superstructural considerations. The demographic groups that kept Labour alive this election were women (6.6 points higher than men), Māori, and Pasifika, and the party would be insane not to recognise the debt that they owe these voters. Of 11 MPs in whose electorates Labour won the party vote, only one — David Clark — is Pākehā, and in his electorate of Dunedin North Labour got 24 votes more than National. Five (Williams, Mahuta, Sepuloni, Wall, and Whaitiri) are women. The return of Te Tai Hauāuru, Tāmaki Makaurau and especially Te Tai Tokerau to Labour underscores the opportunity that exists to reconnect with Māori.

There will be enormous pressure to begin taking these voters for granted again, and it must be vigorously resisted. As for talk of reaching out to “the base” — a party’s “base” is who votes for it when it is at its lowest. Labour’s base as demonstrated by the 2014 election is comprised largely of working-class women, Māori, and Pasifika. So policy proposals that impact those groups more directly — parental leave, free healthcare, ECE, support for family violence services, social welfare — should not be neglected. By and large, though, these voters will also be motivated by many of the same concerns that speak to anyone else, particularly as the National government’s policies begin to bite. But the party’s appeal must expand well beyond this base into the centre ground. It need not be zero-sum. Labour cannot afford to be caricatured as a party that only cares about those groups, it must be a party that a broad range of people feels like it could vote for — like the party understands their needs, and would act in their interests. The key is framing messages and policies in ways that speaking to the base without alienating the broader public, and to the broader public without excluding the members of these base demographics groups, using separate channels and emphasis where necessary. The key term here is “emphasis”.

The party also has to be smarter and more pragmatic than it has been, especially in social policy. At a minimum, this means an end to opposing Whānau Ora on principle. The new MP for Hauāuru, Adrian Rurawhe, speaking to Radio New Zealand’s Te Ahi Kā on Sunday, has a strong line on this: to not attack the philosophy, to not attack the model, but to attack the implementation of individual schemes. There’s a distinction between cartelised privatisation of service delivery, and self-determination, and a party of Māori aspirations should work, even in opposition, to strengthen and entrench the latter so it can succeed. National has spent six years making policies targeted at Māori, run by Māori and under Māori delivery models politically and culturally acceptable, and has made enormous progress on Treaty claims. Labour must capitalise on these gains. They also provide an opportunity to reach out to the Māori Party, should they survive another term in government and remain viable.

The same imperative also means collaborating with the government on distasteful topics like RMA reform, regional and rural development, and charter schools. The battle over whether these will happen is comprehensively lost; the questions now are how badly are they going to be done, and how much political capital will be wasted in trying to unshit the bed later. Better for Labour to work collaboratively with the government to limit the damage and make the best possible use of the rare opportunity to reform entrenched systems. Let the Greens fight them. Don’t worry! There will be plenty else to oppose.

The Greens are here to stay, and Labour should not be reluctant to bleed some of its liberal-activist support to them, to make up bigger gains elsewhere. This will infuriate many in the activist community, and most everyone on Twitter, but my sense is nearly all of those folks vote Green anyway, and they will be in safe hands. Labour hasn’t been a radical or activist party in recent memory, except for 1984-1990, and we know how that turned out.

There is an opportunity to coordinate and make use of the temperamental differences between the parties, with the Greens taking a more vigorously liberal and activist role against Labour’s moderate incrementalism. The strategy that has been proposed intermittently for ages that Labour should attack the Greens directly is insane — the two parties, while allied, do not and should not substantially share a constituency. Labour, like National, is is a mass movement of the people, and should become more so; the Greens are a transitional insurgent movement seeking to influence the existing mass movements, and they seem intent on continuing in that role.

Of all the Small Vehicles, the Greens are best equipped to thrive in a Big Vehicle-dominant context. New Zealand First will struggle. While Labour should collaborate with the Greens, Labour should contend with NZ First, and aim either to gut it of its voter base or, more plausibly, to drive it towards National where the inevitable contradictions and ideological enmities will probably cause harm to both parties. ACT and United Future are wholly-owned by John Key and are effectively irrelevant.

The worst case for Labour, apart from continuing in the blissful ignorance that nothing is really wrong, would be a retreat into sullen populism, trying to out-Winston Winston or out-Key Key, or chucking the vulnerable passengers overboard so that the ship might float a little higher in the water for those who remain. The party has to have its own identity and its own motive force, and it has rebuild its own constituency. It can be done. I hope they can do it, because we haven’t had an effective Labour party for a long time now, and we really need one.

L

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Reality-adjacent

John Key and David Cunliffe both spent much of the election campaign talking about the dreaded “things that New Zealanders really care about”. But Key, under direct attack, was much more disciplined about sticking to those things. The metacampaign, Dirty Politics, and the Dotcom Bomb were worth nothing more than haughty dismissal. At the time this seemed arrogant and ill-advised — how could he just shrug off such scandal? But he did. The National party ran an orthodox, modern campaign. They stuck to their guns amid all the madness, and the result was triumphant.

The poster child for this campaign was candidate Chris Bishop, who ran an old-fashioned shoe-leather campaign in the Labour stronghold of Hutt South and pushed the party’s strategic genius Trevor Mallard to within a few hundred votes of losing the seat he has held for 20 years. No stunts, no social media hype, no concern for the wittering about his being a former tobacco lobbyist, he just talked to the people and listened to the answers that came back.

But how did they know?
A few days before the election, Russell Brown was polled by Curia, and posted the questions. Russell noted that “these questions aren’t really geared towards firmly decided voters” — and this is key. They don’t presuppose a strong position, they’re simple and to the point, and they lead respondents through a narrative about what leadership is about and what government is for. And they seem as if they would yield an enormous amount of actionable data, not only about what voters value, but about why they value it. On election night, Key singled out Curia pollster David Farrar for particular praise:

“To the best pollster in New Zealand — and don’t charge us more for it — David Farrar, who got his numbers right! And who I rang night after night, even though I was told not to, just to check.”

John Key could afford to dismiss the metapolitics because he had plenty of good data telling him that people didn’t care about it, and to the extent that they did care about it, it favoured him. The single most evident difference between the campaigns is that When John Key said “the things New Zealanders really care about” he actually knew that these were the things that New Zealanders actually care about. The National party ran a reality-based campaign, not a hype-based, or a hope-based, or a faith-based campaign. In this they mirrored the most famous hope-based campaign of all time — Barack Obama’s — where the breezy, idealistic messaging was built on a rock-solid data foundation.

Key seems to have been the only party leader who was really secure in this knowledge. The Greens and Labour did seem to want to stick to their guns, but their data was evidently not as good, and they bought at least some of the hype that Dirty Politics and the Dotcom Bomb would bring Key low. So did I. But nothing much is riding on my out-of touch delusions. But opposition has a responsibility to be, if not reality-based, then at the very least reality-adjacent.

Play, or get off the field
I am a terrible bore on this topic. I have been criticising Labour, in particular, since at least 2007 on their unwillingness or inability to bring modern data-driven campaign and media strategy to bear in their campaigns — effectively, to embrace The Game and play it to win, rather than regarding it as a regrettable impediment to some pure and glorious ideological victory. Mostly the responses I get from the faithful fall under one or more of the following:

  • National has inherent advantages because the evil old MSM is biased
  • the polls are biased because landlines or something
  • the inherent nature of modern neoliberal society is biased
  • people have a cognitive bias towards the right’s messaging because Maslow
  • it inevitably leads to populist pandering and the death of principle
  • The Game itself devours the immortal soul of anyone who plays ( which forms a handy way to demonise anyone who does play)

But data is not a Ring of Power that puts its users in thrall to the Dark Lord. And, unlike the One Ring, it can’t be thrown into a volcano and the world saved from its pernicious influence. Evidence and strategy are here to stay. Use them, or you’re going to get used. The techniques available to David Farrar and the National party are not magic. They are available to anyone. Whether Labour has poor data or whether they use it poorly I do not know. It looks similar from the outside, and I have heard both from people who ought to know. But it doesn’t really matter. Data is only as good as what you do with it. Whatever they’re doing with it isn’t good enough.

The best example from this campaign isn’t Labour, however — it’s Kim Dotcom. He said on election night that it was only in the past two weeks that he realised how tainted his brand was. He threw $4.5 million at the Internet MANA campaign and it polled less than the Māori Party, who had the same number of incumbent candidates and a tiny fraction of the money and expertise. Had he thought to spend $30,000 on market research* asking questions like those asked by Curia about what New Zealanders think of Kim Dotcom, he could have saved himself the rest of the money, and saved Hone Harawira his seat, Laila Harré her political credibility, and the wider left a severe beating.

That is effective use of data: not asking questions to tell you what you want to hear, but to tell you what you need to know. This electoral bloodletting is an opportunity for the NZ political left to become reality-adjacent, and we can only hope they take it. Because if they don’t, reality is just going to keep winning.

L

* In response to this figure, UMR pollster Stephen Mills tweeted “$1000 would have been enough”.

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Culture, strategy and an end to the phony war

It is a truth universally acknowledged that, in business and elsewhere, culture eats strategy for lunch.

Nicky Hager’s latest book Dirty Politics (which I haven’t read, but here’s Danyl’s summary) seems certain to cause a strategic shift in the electoral landscape. It should give credence to some of the left’s claims about the National party, and turn public and élite scrutiny on the character and activities of the Prime Minister and his closest aides, including his apparently-extensive irregular corps of bin men, turd-mongers and panty-sniffers. To do so is probably its primary purpose, and the timing and cleverly-built hype around the book reflects this.

But what I hope is that it also produces a cultural shift in New Zealand politics — weakening, or at least rendering more transparent, the intrigue and back-room, or back-door, dealing that characterises this sort of politics.

The book apparently alleges that the Prime Minister’s office is at the heart of a broad network of nefarious intelligence and blackmail, where they collect and hold a lien over the career or private life of everyone close to power. Nobody is their own person; everyone is owned, to some extent, by the machine. Patrick Gower wrote before the 2011 election that John Key owns the ACT party, and Hager’s book seems to substantiate this, detailing how they forced Hide’s resignation, in favour of Don Brash.

That is culture, not strategy, and it exerts considerable influence on those over whom the lien is held.

Immediately upon the book’s release, Cameron Slater noted that some journalists, and some Labour and Green MPs, would be getting nervous. Well, good. If there has emerged some sort of mutual-assured destruction pact to manage this culture, ending it could be Nicky Hager’s lasting contribution to New Zealand. Let the comfortable and the cozy live in fear for a bit. This includes Kim Dotcom, who claims to hold such intrigue against the Prime Minister, and is the target of a similar campaign, though it remains in abeyance.

This is a phony war about preserving the position of political élites on both sides of the ideological divide, to the general detriment of the sort of politics we actually need as a nation. Unlike the original MAD pact, we don’t risk the end of the world if this all blows up — we just might get our political and media systems cleaned out.

At least that’s the theory. I’m not very optimistic — cultural systems are sticky and resilient, and clearly many people have much invested in them. As we have seen with bank bailouts and phone hacking, the system can’t be destroyed from outside, and the influence wielded applies also to anyone who might be called upon to investigate.

The final point is about intelligence and security. The book alleges that the Prime Minister’s office released information from the Security Intelligence Service to these people, and that National staffers illicitly accessed Labour’s computers. The documents that form Hager’s source material also were apparently illicitly obtained from Cameron Slater’s website during an outage. That’s probably the most serious cultural indicator: sometimes you have to fight fire with fire. We are well beyond due for a serious discussion about the acceptable bounds of espionage, leakage and spying, and if Nicky Hager’s book generates this debate, he will have done Aotearoa a great service.

L

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What is success for Internet MANA?

In the previous two posts I’ve covered the strategic rationales behind the Internet MANA alliance, and how, even if they spend their money very inefficiently, they are still very likely to gain a stronger presence in Parliament. But what does success actually look like for Internet MANA?

This is a complex question to answer because Internet MANA, for all its potential, is a mess of vanity projects existing in a state of ideological and pragmatic tension. But tensions all resolve sooner or later.

Kim Dotcom: Disruption (a change of government, or 10%)
Of all these vanity projects, Kim Dotcom’s is the greatest. It’s hard to imagine a guy who donated $50k to John Banks starting a cyber-utopian radical-left-aligned political vehicle for altruistic reasons, and it seems plain that he means to prevent, by any possible means, his extradition to the USA on copyright infringement and money-laundering charges. This is fair enough from his perspective — he can’t spend his pile in a US prison. NZ is a well-chosen target: a country with a small (therefore shallow, cheaply-manipulated) political system, but, unusually, also possessing a reasonably robust and independent judiciary.

To get his extradition case thrown out, Kim Dotcom needs to change the government, and prevail upon an incoming Minister of Justice that he and his party are great assets to that government.

The likelihood of this is slim, because he has already antagonised Labour, and because the leader of his own party has insisted she will not be led on the matter. Other members of the radical left groups aligned with the party are probably supportive of his ideological aim here, if only due to generalised anti-authoritarianism and anti-Americanism. And the other branch of Kim Dotcom’s game is fame, or notoriety, and if he can put his disruption engine in parliament, he will gain that, and it may provide him strategic cover for other manoeuvres regardless of who is in government.

The other way it could happen is if Internet MANA shocks everyone and polls very high — say, 10% — which would ruin almost everyone’s coalition plans. This is also extremely unlikely, but clearly it is Kim Dotcom’s hope, and it would be the purest sort of success for everyone involved.

Laila Harré: A launch (5%+) or a lifeboat (3%)
Her return to politics with the Greens last year was welcomed, and the conventional wisdom is that her appointment to lead the Internet Party was a strategic coup. I agree. But as I discussed in the first post, the deck is stacked in Te Mana’s favour. It is plausible, if the alliance performs poorly, that Harré would find herself marooned amid the wreckage of the Internet Party as its only MP, or even outside parliament, when the Internet MANA agreement expires six weeks after the election.

There’s a quirk here: Te Mana gets list places 1,3 and 4; Internet Party 2, 5 and 6, after which they alternate. So if they win five seats or fewer, Te Mana MPs will outnumber the Internet Party’s. If they win six or more seats, the numbers are more or less even. This provides a strong incentive for the Internet Party to perform, and also suggests shrewd negotiation by Te Mana.

In the event that the Internet Party bring Harré only into parliament (four seats or fewer), or if Kim Dotcom withdraws his cash and the party structure is no longer found to be self-sustaining, it seems very likely that Harré would join Te Mana formally. While her history in parties of this sort is its own guide, I suspect they would welcome her and it would be a fruitful arrangement: a win, of sorts, both for her and Te Mana.

The Internet Party: A future (7%)
The Internet Party doesn’t really exist. Kim Dotcom exists and Laila Harré exists, but without them it has no motive force. It could acquire such force by gaining a very substantial share of the party vote (7-8%, or 9-10 MPs), half of whom woulf be from the Internet Party, which could possibly — not probably — become self-sustaining. Without Laila Harré’s star power and Kim Dotcom’s money, this is a hard row for Vikram Kumar and the Candidate Idol contestants to hoe.

Te Mana and Hone Harawira: The only way is up
Te Mana’s case is easiest here: everything looks like a win for them. They have one MP facing a strong electorate challenge and polling under 1%, with no money, who is almost universally hated by the political mainstream. Even a mediocre performance of 2-3% would see Annette Sykes and possibly John Minto join Hone Harawira in parliament, which would make for some impressive fireworks. Even if the party then has to fend for itself, as Kim Dotcom’s largesse expires, or he is shipped off overseas, they have been granted a rare opportunity to galvanise the marginal electorate, and that’s better than under any other conceivable scenario.

The Left: It’s complicated
Given Labour’s current posture towards all parties that aren’t Labour, there is no way that Internet MANA benefits the left generally in the immediate term. Many commentators — Phil Quin has a good example at Pundit — have argued that the mere existence of Internet MANA could return John Key with a clean majority and the ability to have his way with Aotearoa in a glorious third term. I think this is pretty plausible. By no means does the left look like winning this election. But Labour has been underperforming for most of the past decade, and it might be that an injection of crazy disruptive ideas from a weird agglomeration of old leftwing radicals and young idealistic crypto-libertarians is what they need to shock them back to their senses.

There remains the slight possibility that they will bring enough MPs into parliament to make a chaotic and unholy alliance of the left a just slightly less-bad alternative to the Golden Age of John Key. As an aside: the better the Greens do, the better for Internet MANA post-election; and if nothing else they should hopefully form a strong ideological and generational counterpoint to New Zealand First, which I fear starts to fancy itself as the UKIP of the South Seas.

Aotearoa as a whole
I think New Zealand is better off having this argument than not. Much of what Internet MANA stands for has been unduly marginalised and is due consideration; especially the emergent aspects, such as with regard to modern standards of surveillance, the relationship and competing loyalties of the state to the citizenry and to its international community, and to the comparatively trivial matter of copyright. These debates feed into the notions of sovereignty and the primacy of people, rather than corporations and institutions, which mobilise Te Mana, and there are significant areas of ideological overlap, such as the flagship Internet Party policies of free tertiary education, withdrawal from the TPPA, severe constraints on the GCSB and other security and intelligence services, and — less popular with Hone Harawira than with his voters — the decriminalisation of marijuana. These are debates worth having, and we will be better off for having had them, whether the major parties want to or not.

L

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Doubloons

Phil Sage in comments to my previous post about Internet MANA observes that “The question is whether Kim Dotcom’s money will translate into poll support and votes.” I have no knowledge of what’s going on inside the Internet MANA HQ bar what’s been reported in the media, but those reports indicate a large full-time campaign staff, and that will burn a large share of the money. Matthew Hooton was on the wireless yesterday scorning this approach and saying the money will be pumped into glossy brochures and Internet ads nobody will watch. Which might be fair enough.

But wait, we actually have some data! Each election, David Farrar helpfully puts together a breakdown of party votes won versus dollars spent (CPV). The 2008 and 2011 tables were stolen from DPF, with thanks.

2011 Election

In 2011, almost all parties spent less than $5 per vote — exceptions were the Conservatives ($32), ACT ($26) and Social Credit ($20).

2008 election

In 2008 the expenditure was higher and the field more spread, probably because the result was less certain and the stakes higher. (EDIT: Also, it appears the broadcast allocation was not included in the 2011 figures). The two main parties again spent less than $5, most others spent $10-15, and there were two outliers — RAM ($49) and Social Credit ($55).

Internet MANA in 2014
Turnout in both those elections was famously modest (2.2-2.4 million). Since both Labour and Internet MANA are trying to mobilise the “missing million” let’s assume turnout increases to 2.5 million in 2014, which yields a nice round 25,000 party votes per 1%. Let’s also assume that Internet MANA only spends the $3 million put in the pot by Kim Dotcom, which in reality will be higher.

The first point here is that high polling tends to correlate with low CPV. Incumbency and brand value count for a great deal. So it is unlikely that any new party would be able to achieve good CPV by any means. To match the major parties Internet MANA would need to poll 25%, in which scenario Labour would effectively cease to exist. Even though that’s only a little over half of the “missing million”, it’s not happening.

My guess in the post was that Internet MANA would get 2-3% for $3 million. That would mean per-vote spending of around $50, far higher than any of the parties in 2011, on a par with the unelectable outliers in 2008. I still think that’s the most likely outcome.

If they tank and gain only what the combined Internet and Mana parties are polling now (1-1.5%) they would have outspent 2011’s most profligate parties by a factor of three in terms of CPV. This has to be the worst conceivable outcome for Internet MANA, and even so, it very probably yields them a second MP, assuming either Hone Harawira or Annette Sykes wins their seat. Anything more than this is gravy. Te Mana teaming up with Kim Dotcom is, at least tactically, a no-lose situation.

If they match 2011 CPV outliers the Conservatives, they would need to pull at least 100,000 votes — a tenth of their missing million — which would yield 5-7 MPs and make them a force to be reckoned with between now and 2017, giving them a platform to profoundly disrupt the plans of every other party in NZ politics. It’s unlikely, but with this sort of money, it’s not impossible.

UPDATE: Andrew Geddis points out in comments that I’ve failed to account for the electoral spending limit, which prevents Internet MANA from blowing the whole $3 million on declarable election expenses, which is what the cited 2008 and 2011 numbers cover. The expenditure limit is $25,700 for a constituency candidate and $1,091,000 for a registered political party plus $25,700 per electorate contested by the party.

So all the CPV figures in that last table are about double what they will be in reality, which means the premise and conclusions of this post are rather weaker than they seemed.

L

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Mongrel renegades, castaways, and cannibals

So Herman Melville described the crew of the Pequod. While it probably seems tendentious to equate them to the Internet MANA party, that seems to be how Kim Dotcom, at least, regards himself — as Captain Ahab, nailing his doubloon to the mast and urging them to seek the destruction of his Prime Ministerial Moby-Dick. But in spite of the many failings he, or Ishmael, attributed to them, that crew were good people, enormously effective, and very nearly successful in their hopeless task of hunting a single whale across all the oceans of the world.

In spite of Dotcom’s megalomania, Key — unlike the white whale — just doesn’t care that much. But in any case, the hauling-together of two unlikely vessels that form the Internet MANA alliance is more interesting than one rich eccentric’s personal grudge, or his attempts to avoid extradition.

The conventional reading of Internet MANA — even among some on the left — is that Kim Dotcom has colonised the Mana movement, buying himself a tame savage who’ll do his dirty work for him. But I don’t think so: I think the Internet Party is trying to bite off more than it can chew.

The Mana movement has always been about those outside the political mainstream. Even while he was forced into collaboration, Hone Harawira was plain about his radicalism. His legacy — barring some major change — is unlikely to be that period, or Te Mana, but the previous three decades of dogged activism in service of his people. One of these was his role in the haka party incident which demonstrated — or rather, reiterated after a long hiatus — to Pākehā New Zealand that Māori were’t going to take it.

Even so, if it were just Harawira this colonisation line might be fair — he’s a tough and principled guy, but running a fringe party without a benefactor — in the form of an electoral liege, or a millionaire backer, or both — is hard going. (Ask Winston Peters.) But Harawira is not alone. Both Annette Sykes and John Minto have decades of unglamorous and largely unrewarded activism behind them, and enormous credibility. Not among the National and Labour-voting public, but in radical and Māori circles, where it counts for their purposes. There is clearly some division — Sue Bradford quit the party, prompting a rush of right-wingers who have for decades said the most vile things about her to praise her integrity. But all in all, few people who know them believe that all of Harawira, Minto, and Sykes can be bought, in one go.

To which add Laila Harré. Many people have written that her appointment as leader of the Internet Party brings it credibility, and I agree. It is a brave, or reckless, appointment from Kim Dotcom’s perspective, because Harré is bigger than he is and, if elected, will influence the party more by leading it than he will by funding it — especially when his largesse runs out, as it inevitably will. Her parliamentary achievements have been limited because of her commitment to activism, but her record outside parliament has been more significant. She has demonstrated she can’t be bought, and is willing to hold her own line and walk away from a bad political situation, even when the stakes are very high.

What’s cleverest about this alliance is how neatly it separates ends and means. Morgan Godfery has argued persuasively that the alliance is a deeply conventional bit of strategy and an obvious next-step, from a Māori nationalist perspective, both mainstream and nationalist-insurgent political vehicles for Tino Rangatiratanga having been thoroughly co-opted by mainstream (white) imperatives. I would say further that it indicates a strategic maturity we have not yet seen from Māori parliamentary parties, and an elaboration of the māori party’s strategy of pragmatic coupling, though this time, to a vehicle it can more readily control. At least in this case, the Internet Party’s agenda is clear.

The two parties seem incongruous, and they are — but what they have in common is a claim to stand for those who feel like mainstream politics doesn’t speak for them, or listen to them. Both parties have links to the Occupy movement, and the policy platforms are pitched at groups with some core interests in common: those who are (or feel) criminalised or oppressed by the mainstream, and who wish to disrupt it. These include tech-libertarians and utopian futurists, internet “pirates” and disaffected geeks, anti-GCSB and TPPA activists, land rights and Māori sovereignty activists, actual socialists (as opposed to the Labour kind), the very poor and economically marginalised (especially rural, Māori), marijuana smokers, and a more fringey element of anti-Fluoride campaigners and other assorted cranks and conspiracists. In aggregate it seems clear that these people comprise more than 5% of the electorate — if only you can get them to vote. And that’s what Kim Dotcom’s millions are for: not so much to persuade them of a single, coherent policy platform, but to fly a radical banner to which the disruptors can flock. For this purpose they need not be all of one kind.

Te Mana has its own marginal voters, which comprise less than 1% of the electorate, and because of the difficulty of persuading it seems unlikely the Internet Party will mobilise much more. But a party vote total of 1.5% should see a second MP, and anything much above 2% should see a third, and this does not seem totally implausible. Even if these are “new” voters — not drawn from Labour or Greens — this probably comes at cost to the wider left if mainstream swing-voters are scared from Labour to National by the prospect of a left coalition including Internet MANA, as Danyl and Russell Brown have suggested. It might well be that the success of Internet MANA weakens Labour’s prospects, but it seems to have little chance of victory anyway, and has declared against Internet MANA, so a robust challenge from the left — as well as the one it has had from John Key on the right — is probably a good thing in the long term. What cares Mana for the neoliberal Pākehā Labour party’s fortunes?

Paradoxically, the addition of Internet Party voters would give Mana voters a stronger chance at locking the Internet party — and Harré — out if they are suspicious of Kim Dotcom’s influence. Harawira is facing a strong challenge in Te Tai Tokerau, but Waiariki is also close. If Labour, Green or Māori party voters tactically support Annette Sykes, hers could be the anchor seat. In this case, the second MP (whether he wins Te Tai Tokerau or not) would be Hone Harawira, with Harré third. Given that two or three MPs seems much more plausible than four or five, the most likely outcome seems to be that Te Mana is no worse off, possibly better off, and has a chance to swap Sue Bradford for the much more politically-viable Laila Harré. It looks less like the Internet Party colonising the Mana movement than the opposite.

L

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The hazards of MMP

David Cunliffe’s apparently-rash pledge to scrap the coat-tail rule that permits a party with less than 5% of the party vote to bring in additional MPs as long as it wins an electorate within 100 days turns out to not be quite so bold: it looks as if they simply intend to introduce Iain Lees-Galloway’s member’s bill — currently before Parliament — enacting (most of) the recommendations of the Electoral Commission as government legislation. That isn’t bad. It initially seemed as if he intended to ram through just this one cherry-picked rule under urgency, and some of us overreacted to it. There are still problems with the plan, but they are more complex.

Anyway, the episode throws light upon a lot of the tradeoffs and subtleties inherent in MMP — the major one of which is whether proportionality or equity in the distribution of proportionality is more crucial.

What MMP is good for
MMP is a rather ugly, instrumental system for balancing the expressed wishes of fickle and often arbitrary voters with regard to an volatile and rather shallow pool of political talent against the need for stability. It is not a means by which to determine moral merit, as trial-by-political-combat FPP claims to be, and nor is it a route to the mutually-least-bad choice, as in STV and related systems. It is what it is.

What it is not is an elegant expression of noble political aims. I guess this is why traditionalists dislike it viscerally: it feels kinda shabby, but it works.

“Rorts” and electorate-level match-fixing
So with that last point in mind, Danyl has said it best: the game is the game. Its job is not to look nice, it’s to deliver representative parliaments. I don’t much like it, but the utility of the kind of strategy in play in Epsom is obvious, so fair enough — as I said before the 2011 election, “If the electorate won’t punish them for doing so they’d be rude not to.”

Two things to add. The first is that the electorate clearly isn’t inclined to punish the ACT and UnitedFuture parties, at least not locally, because in the solitude of a cardboard booth, orange marker in hand, self-interest tends to overcome ethical compunctions. But the appeal to such compunctions is still the only way to reduce the viability of the “rorts”, so it is natural that those opposed will try to jawbone those compunctions. Patrick Gower is leading the charge here — although he, too, has been consistent in his derangement about this topic since before the 2011 election.

Second, the agreement between the Internet and Mana parties where Hone Harawira’s seat in Te Tai Tokerau will, they hope, bring in Internet party votes and list MPs is emphatically not of the same type as Epsom and ÅŒhariu, where major parties throw the electorate to exploit the coat-tail rule. Nobody is throwing anything in Te Tai Tokerau — in fact, it seems likely to be one of the most strongly-contested electorates in the country, a fact which is causing conniptions in some quarters. While the electoral outcome will look similar to the undiscerning eye, the Internet MANA deal is different — smaller parties allying to overcome structural barriers to their participation in democracy. Not only is it not only not a rort, it is perfectly just and rational behaviour in the face of an iniquitous system.

Consensus and timing of law changes
In general there should be consensus in changes to electoral law. But I agree with Rob Salmond that “should” is not the same as “must” — the object is to be sure that changes will be generally popular, and will be durable, and in this case an independent commission and the deep consultation that occurred during and after the referendum strongly suggests that implementing the recommendations via the Lees-Galloway bill will be both those things.

But timing matters: now that Internet MANA has declared its hand and chosen to take advantage of the coat-tail rule in a similar way as ACT and UnitedFuture, it would be unjust to change the rule immediately before the election. Depending on how things play, it might still be unjust to change the rule without further consultation after the election, because it may be that people see in the Internet MANA a new way to challenge the entrenched parties (I plan on writing more about this if I get time). For this reason it is good that John Key has ruled out supporting the Lees-Galloway bill.

Proportionality versus equity
All that having been said, I favour scrapping the coat-tail rule. Even though, as Graeme Edgeler has explained, it increases proportionality rather than decreasing it, mitigating the effect of the 5% threshold that kept New Zealand First, with 4.07% of the party vote, out of Parliament in 2008. The trouble is that it increases proportionality selectively rather than equitably — that is, among minor parties who are willing and able to become the vassals of larger parties — as Gower said in 2011 “It’s finally official: John Key owns the ACT Party.” Proportionality in an instrumental system is not an intrinsic good that automatically trumps other considerations. Process does matter. But outcomes matter too.

Political clientism in an instrumental system is not so much morally or ethically wrong as it tends to degrade representativeness, and delivers huge benefits to the strongest parties — who have the ability to burn political capital to take advantage of these sorts of relationships — in ways other parties cannot. So while you get the appearance of more diverse representation, the effect is more that the liege party gets to offload political risk and responsibility to its vassals. The clearest case of the present government is the charter school policy that, had National passed it of its own volition, would have endangered Key’s moderate reputation. ACT’s presence in parliament — even without deputy leader Catherine Isaac, who was outrageously granted the sinecure implementing the charter schools plan — gave the government cover to implement policy they wanted, but which was too politically risky.

Self-interest dressed as principle
So to an extent the proposal from Labour is sour-grapery from a political middle power that is neither big enough to be able to benefit from the coat-tail rule, nor small enough to potentially need it. For all their posturing about the integrity of the system, I am sure they would use it if they could get away with it (as they did in Coromandel in 1999), but they can’t. They have no potential clients, so they have no need for the coat-tail rule. The Greens, secure above the threshold, don’t need them for this, and they (correctly, in my view) regard Internet MANA as too radical for such a relationship. The retreat to electorate nostalgia is also strategic positioning from a party that has seen the resentment that exists towards list MPs, and has pledged to re-take the provinces and rebuild its electorate network.

National’s refusal to implement the findings of the commission also come clearly down to self-interest. They are so far the major beneficiaries of the coat-tail provisions, having used their two vassal parties to good effect through both terms of their government.

Ultimately while both the major parties’ positions are self-interested, Labour comes closest to the right conclusion: that the iniquity of the coat-tail rule’s additional proportionality is a greater cost than the additional representation gained by it is worth. The best cure for the problem is to cut the party vote threshold — to 1/120th of the party vote, or a “full seat”, which would obviate the coat-tail rule. Scrapping the coat-tail rule is a rather distant second-best outcome, but doing that as well as cutting the threshold to 4% as recommended by the commission seems like the sort of compromise with which nobody will be totally happy, but which will endure.

Because functionality is what matters, not perfection.

L

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On Resistance to Climate Change Politics

Yesterday the Green Party released its Climate Tax Cut policy proposal comprising, mostly, a carbon tax offset by an income-tax-free threshold for individuals and a decrease in the company tax rate. There’s much to be said about the cleverness of the tax-swap policy and so on, but I’m more interested in the cultural differences I observe in Green supporters (who love climate-change mitigation policies) from the rest of the populace at large (who regard them as a necessary evil at best).

Seeing that this cultural gap results in an amount of criticism from greens directed at those less enthusiastic, this morning I put it into the form of a twitter-treatise, as follows:

This seems to me a pretty fundamental map/territory problem: people are cognisant of the threat of climate change and might be willing to do something about it, but are alienated by alarmist rhetoric, guilt-trips and castigation, and policies that might inconvenience them.

The Greens as an increasingly professional and mainstream political operation are, for the most part, pretty good at staying positive on this topic. But how are they to mobilise their activist base without bringing out the elitist and badgering tendencies that come so naturally when people are so convinced of their rightness that they genuinely can’t understand why everyone else doesn’t agree with them?

L

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The housing problem isn’t a housing problem; it’s a regional development problem

I have noted with growing despair the xenophobia which is becoming a political commonplace this election cycle. On the left it’s about house prices.* But this post is not about racism; it’s about development.

The national median house price is $415,000, a figure skewed substantially upwards by the extraordinary cost of housing in Auckland. But you can buy a three bedroom house in Taumarunui for $26,000, or for $67,000 in Tokoroa. These are extreme examples, but for considerably less than half the median price you can buy a charming colonial villa in Tapanui ($149,500). For a little more than half the median you can buy a newly-renovated house on an acre in central Gisborne ($225,000). Similar houses are available for not very much more money in larger regional centres like Dunedin and New Plymouth, and that’s without considering many apartments, townhouses and more modest types of dwelling.

There are houses out there: there just aren’t jobs to go with them.

The chart above shows income and employment growth by region, and this is why the houses are so cheap. The growth is just not there. (From the Ministry of Business, Innovation and Employment Regional Economic Activity Report 2013).

Opportunity
It’s not just jobs, though; there’s more to life than work. People need confidence in their opportunities in a new place before they will, as Jolisa Gracewood says, buy shares in that community by owning or renting a house there and settling down. They need schools and hospitals and civic institutions and a sense of belonging, they need certainty about their community’s future, and their future within it.

The community likewise needs needs certainty in its new arrivals. A gold rush or an oil boom might provide jobs and cash, but it doesn’t provide certainty for either group. Certainty — and opportunity — comes from deep and sustained development. The fly-in/fly-out mining towns in Australia are a good example, and while that industry has been instrumental in maintaining Australia’s robust economy, its direct value to the regions has been limited — trickling down, lifting all boats — without the adoption of targeted development initiatives such as Royalties for Regions, which seek to return a share of the proceeds of industry to local communities.

As Eric Crampton said about the census income growth figures, increases in average wages across much of the South Island have been coupled with decreases in population, as people on low incomes move in search of better-paying work. Rob Salmond agreed, saying:

The regions with the supposedly highest median income growth also had some of the worst records in population growth, while the areas whose populations grew the fastest had relatively little change in median incomes.

Returning to the MBIE chart above, notice the regions in the top-right quadrant: the West Coast, Waikato and Taranaki. These are distinguished by two characteristic sectors: dairy, and mining, each of which provides a relatively small number of well-paid jobs within a narrow sector, skewing up the income levels but not necessarily changing the overall development picture very much. As crucial as the dairy industry, in particular, is and will continue to be to New Zealand’s economy, a complete solution to development it sure ain’t. Which is why you can buy an enormous Moorish-inspired villa for $220,000 in the middle of gas and dairy country.

Diversification and specialisation
The object of a regional development policy must be to promote structural change, to create industries and communities that are sustainable in their own right — neither transient nor exhaustible, and which attract people whose commitment is likewise neither transient nor exhaustible. These jobs need to go beyond the traditional churn industries like tourism, hospitality and service; though, of course, these jobs will be needed, they should be incidental to development, not its purpose. They need to be high-value and export-led — unlike, for example, our timber industry, and our wool industry. One of our key advantages here is our reputation for being clean and green — demand for premium food, the safety and quality of which can be assured, and including organic and sustainably-produced, is likely to grow strongly and we seem ill-prepared to meet this opportunity, as just one example. Another example is the potential of Māori business, which is as yet terribly underutilised.

In New Zealand we talk a lot about the roles of government in distributing wealth, and in ensuring public access to health, education and other scarce resources. These levers are well-recognised and there is at least a moderate degree of bipartisan agreement on their use. This is not the case with regional and economic development strategies, where there are deep practical and ideological divisions between the parties. I can see why the noninterventionist technocratic right parties like ACT and National are reluctant to consider — or even recognise the viability of — the sort of robust, hands-on regional development strategy that will sustainable economic and community growth in regional areas and persuade the frustrated and overcommitted residents of our major cities to risk a change. It will require considerably more input than building roads, granting mining permits and water rights to permit the extraction of value directly from the land. It will require a lot more than public-private partnerships and white-elephant monorails through virgin rainforest. It very likely will require PPPs, roads, and mining rights, though, meaning the left will have to reconsider some of its positions as well. It will require thorough investment in infrastructure, especially transport infrastructure, and purposeful community-building, possibly funded by a deeper cut from mineral royalties, a localised share of revenues from key industries, or loans from the government. It will probably require considerable autonomy devolved to the communities affected, and the strengthening — rather than the weakening, as is currently happening — of local government. It needs to be a little bit New Deal and a little bit Think Big.

Diversity is resilience, and our economy is very narrowly based. That must change. Different regions have their own strengths — environmental and historical, in terms of personnel and capability — and this represents an opportunity to improve the national economy holistically, by strengthening each of its component parts, rather than by building one economic muscle until it threatens to throw everything else out of balance. In many cases these nascent strengths will need considerable augmentation, and some will need to be developed almost from scratch. That requires significant and sustained investment in research and development — contributions to which the National government cut during the time when it was most crucial; when talent needed to be incentivised to stay here, and when industry needed to prepare to take advantage of the recovery, when it arrived. Public-sector research agencies can be beneficial in quite unpredictable ways, and when it comes to blue-sky research, patience can pay off enormously. If you’re reading this over Wi-Fi, you can thank the Australian government’s scientific agency, the CSIRO.

People and places
One obvious and direct means by which the government can influence regional development is by decentralising — by relocating government departments or agencies to regional centres. At a minimum, governments could decline opportunities to actively dismantle regional industries — such as Invermay — for the sake of short-term cost savings or change for its own sake.

It is clear that having a critical mass of mobile public servants all located within a kilometre of each other can increase efficiency and cross-pollination in government and business. Some significant new businesses — such as Xero and Vend — clearly benefit from strong cohabitation and the development of their own start-up cultures. On the other hand, in the past decade telecommuting has become plausible for a large proportion of people whose work is predominantly reading, writing and talking on the phone, and the major reasons it is not more widely used are to do with middle-managers wishing to retain some measure of direct control over their staff, which they label “team culture”.

There are costs and benefits to decentralisation, but it is hard to shake the sense that government, and the public service, are growing increasingly remote from the people whose interests they ostensibly serve. The gap between the experience of living in Auckland or Wellington and living in the rest of the country is vast already, and is likely to grow. Over the long term, as regional development improves, mobility will increase, as the economic and cultural risk of moving to or from a major centre will decrease, and this seems likely to yield an even greater cross-pollination benefit than that sacrificed by decentralisation.

Political laziness from the left
The reason the housing markets in Auckland and Wellington are refusing to cool is because people — both internal and external migrants — want to live where there is opportunity, and Auckland and Wellington is where the opportunity is. Blaming foreigners for the continually-rising house prices in Auckland is counterproductive. It’s lazy populism for the opposition to monger fear on these grounds, and it’s clear why the government is perfectly willing to let them do so: first because it cuts against the left’s political brand, and second, because it frees them from responsibility for what has proven a poor regional growth strategy during their time in government.

Labour and the Greens have taken strong and well-articulated positions in favour of regional development and smart growth but they’ve also gifted the government an opportunity to reframe what is essentially an economic development debate as being about housing and migration, when the former is a symptom and the latter is all but irrelevant. As a consequence the whole discussion gets sucked into an unwinnable partisan slagging-match. This isn’t so much a failure of policy, but a failure of political emphasis. It should be relatively easy to correct: they mainly need to stop complaining about the yellow peril, and start talking about the future of a country where wealth and innovation is spread beyond its main centres.

Although I disagreed with his dismissive attitude towards the marriage equality debate, it seems likely that the once and future member for Napier, Stuart Nash, will be an important member of the Labour caucus in future. Late last year he argued persuasively that the regions are crucial not only for the economic wellbeing of the country, but for the wellbeing of that party, and so for the wider left. As he says:

If any party only holds seats in Akld, Wgtn, Chch and Dunedin, then they don’t have a particularly wide mandate to govern because they haven’t got MPs in caucus putting forward the views of the vast majority of geographic NZ.

To an extent it is understandable that this hasn’t happened yet. Development is hard. It takes a long time and a lot of money, and in a political context where governments change no less often than once per decade, it requires an uncommon degree of accord between increasingly diverse political movements. With the Greens now forming a substantial and apparently-permanent adjunct to Labour on the left, and the emergence of new climate-sceptic and anti-environmentalist sentiments within National and its allies, this is a big ask. But it needs to be done nonetheless. The regions aren’t going to develop themselves; they haven’t got the wealth or the people to do so, because it’s all tied up in tastefully-renovated villas on the North Shore and in Thorndon.

Downsouthing
This is not an entirely theoretical discussion for me. All going to plan, at some point later this year my family and I will move from the Kāpiti Coast to Dunedin. My wife is going to the University of Otago to work on the postgrad study she’s been wanting to do for 10 years. We’d have done it years ago if we could — every time we’ve been to Dunedin, we’ve said we’d move there in a heartbeat if only there was work. Mostly what’s changed now is that I can bring my work with me.

The reason we live out here is because out here is where we could afford to buy a house on one modest Wellington income. The idea was always to move into town at some point, but that has gotten more distant, not closer, over the past five years with Wellington’s housing market proving largely impervious to the recession. So off we go.

We anticipate significant benefits. My wife will be able to do something meaningful with her life other than raise our kids full-time or working as a rest home carer, worthy though both those tasks are. Commuting into Wellington would cost dozens of hours and hundreds of dollars a week, and at some point both of us would inevitably end up far from our young kids when they needed us. But not least among the advantages is the regional arbitrage of continuing to bring in something like a modest Wellington income while living in a place where houses are, very conservatively, $100,000 cheaper.

But there’s the thing: unless you’re privileged enough to work in a field where you can telecommute (and bosses who’ll let you), or unless you work in a literal field, moving from Auckland or Wellington to pretty much anywhere else in the country is a big risk. (In Christchurch, the case is much more complex.) You can move, but for many people, the opportunity is just not there, and the risk of giving up what you have is very great.

The government that raises those opportunities will find favour with those who want to move, those in the regions whose economies and communities are boosted by new growth, and those in the main centres who wish to stay, or must stay, who will have richer opportunities for doing do.

L

* On the right it’s more about asylum seekers (National) and internal threats to the colourblind state (ACT). The only party that seems clean of this is United Future, for which Peter Dunne should be congratulated.

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National Lite

It’s been almost a year since I wrote anything here. Things have been complicated. Anyway, this will — I hope, and circumstances permitting — begin a return to participation. All thanks due to Pablo for holding things together.


Answer: Nobody. That’s the problem.

Today was budget day. The carnage in Australia with Joe Hockey’s first budget two days ago was worse than even the Abbott government’s enemies had predicted, with deep cuts to education, welfare, superannuation, science funding and many other fields, including the imposition of a $7 surcharge for GP visits. The contrast here could not be more stark: a return to surplus not immediately thrust into lowering taxes, modest cuts in some areas, increased entitlements in others, particularly in support for young families, and notably the extension of free GP visits to children under 13 years of age.

I’m no big-city economist so I’ll stick mainly to the political aspects. But it basically looks like Bill English’s sixth budget — somewhat like the preceding five, but to a greater extent — does a little good and almost no evil, and that basically ruins the opposition’s game plan, which relies on Bill English and John Key being terrible ogres that eat babies, rather than supporting their parents with leave entitlements. When the man touted as the Labour party’s most left-wing leader in a generation is reduced to complaining that John Key has stolen his party’s policy — as if that is supposed to be a bad thing — things are pretty dire. The opposition’s increasing desperation over the past six years, continuously prognosticating doom over the horizon, simply looks ridiculous when the doom never arrives. The government has snookered the New Zealand left by simply doing what it said it would do, and as Pablo argued persuasively at the start of the year, that makes clear how lacking the New Zealand left is in its strategic vision. They — Labour especially — are relying on the government to do their heavy ideological lifting, and when the government declines to be explicitly evil, the opposition is left with nothing to say.

When your enemies move to occupy your ideological ground, it is an opportunity to extend that ground, replacing what they claim from you with more advantageous ground deeper within your ideological territory. The trouble for Labour is that National has moved towards them, and Labour are still trying to fight them for the same ground rather than staking out more ground of their own. Six years after the “Labour lite” campaign that saw them ousted in the first place, they haven’t learned. Today’s budget has been tagged Labour lite by commentators including Bryce Edwards and Labour’s own Rob Salmond.

Due to assiduous work by National, and a conspicuous lack of it by Labour, “Labour lite” is now more or less indistinguishable from “Labour”, and Labour has offered no sort of “Labour heavy”; full-cream Labour, deep-red Labour, or whatever other metaphor you like. Because of this lack of difference, the electoral decision comes down to competence: of these two groups of mendacious grey technocrats, which is the least likely to inadvertently screw things up, or intentionally, as Jan Logie puts it, f&%k people over? That’s an easy answer: Labour demonstrates its lack of general competence every single day. If it’s not clear by now that they’re simply not as good at being the Nats as the Nats are, when will it ever be?

It’s too late, now, to change this ahead of the election. The die is cast. Labour has — again — decided to rely on political meta-strategy like syllogising failures of judgement or conduct by individual MPs out to the wider government, and it might have worked had they any sort of foundation to build upon. But they don’t. Far from full-cream Labour, Labour itself is Labour lite. Light-blue, even; 98% Ideology-free. If they’re going to play the National-lite game, they at least need to get good at it.

L