Ed Miliband's conference speech opened up a new paradigm in British political discourse. The prospective future Prime Minister has calculated that the nation is ready to listen to his vision of how a 'good capitalism' can work. But the potential pitfalls are plentiful.
In an era of reality entrepreneurial television, programmes such as The Apprentice and Dragons' Den have helped ideas about wealth creation permeate the zeitgeist of the mainstream voter.
It is also a sore point that Tony Blair achieved electoral success by appearing to be comfortable with the 'filthy rich' and there therefore exists the belief that for Ed Miliband to turn his back on aspiration would be to forfeit the votes of millions. This poses a problem for Ed Miliband, for if cynical reductionism allows his ideas to become reduced to anti-wealth dogma then the Labour leader could regret ever raising the issue. And so the stakes are high.
But to settle for the above political wisdom would be lazy and dangerous. Most of all it would ignore both the growing anger at the record prices rises being charged for essential services, coupled with the record profits and dividends being paid to shareholders. Instead, Ed's 'good capitalism' is the celebration of a business practise that promotes worker welfare, training and job security. Good capitalism is one that cherishes its tax obligation and that ploughs profits back into re-investment. The key tenet of good capitalism is for businesses engaged in the supply of essential services to recognise that they are custodians of that sector and not simply rapid profiteers.
That is why when the six energy companies raise their prices by 17-24% this year, Labour are right to protest. When a dual energy bill jumps from £65 to £90 a month overnight pushing an extra half a million families into fuel poverty, even though energy companies enjoy good profit margins, Labour should be brave about supporting Ed's vision of how a better capitalism can resolve this. When rail providers see record revenues of £6.4bn in the last 4 quarters and make record profits, Labour should step up in support of voters' concerns over 8% fare hikes. Likewise, when private rents exceed a record £8,500 a year, it is right that Labour makes the choice to stand with private renters who spent a record £10.7bn in the last quarter on rents. In short, Ed Miliband recognises that the squeeze on living standards has put capitalism in crisis. Private companies who provide essential services such as energy, transport, care and housing have a duty to behave more ethically than other private sector companies.
If capitalism is to emerge safely from the current economic storm then it must be a reformed and ethical capitalism. If record prices occur it should be because of natural market forces and not as a result of British Gas, Virgin Trains or Rightmove's desire to increase their profit margins. The private sector companies as custodians of essential services have a duty to nurture their share of the market in an ethical manner. Simply treating workers, children, commuters and households as sponges to be squeezed for the last buck is the reason capitalism is in the mess it is. It is also the reason that Ed Miliband can benefit from taking a strong lead in championing a new and better capitalism.
There is also electoral ground to be gained in Ed Miliband campaigning for a better capitalism. Labour could commit to giving new powers to pricing regulators. They could also encourage new competition in essential sectors especially by encouraging Co-Operative enterprise. If all else fails, Ed Miliband should make clear Labour's intent to use wind fall taxation to temper the excesses of bad capitalism. Whatever, these are exciting times for those seeking an alternative political vision to neo-liberalism.