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Yvette Cooper: change Labour's clause IV to champion equality

Labour leadership candidate says clause does not go far enough, and party needs to ‘tackle widening inequality itself’

 

Yvette Cooper
Yvette Cooper: widening equality is ‘the big challenge of the next 10 to 20 years’. Photograph: Ken McKay/ITV/Rex Shutterstock

Yvette Cooper has sought to energised her determined late run for the Labour leadership by announcing she wants to rework the famous clause IV of Labour’s constitution so that it includes a new explicit commitment to champion equality.

The shadow home secretary said that the current clause IV– rewritten two decades ago by Tony Blair in a symbolic ideological break with Labour’s previous commitment to public ownership – was striking in that it calls only for equality of opportunity.

In an interview with the Guardian, Cooper said: “That is not enough. We need to tackle widening inequality itself. In the 90s it was argued, ‘So long as we just champion equality of opportunity everything else will look after itself,’ but it does not. The big challenge of the next 10 to 20 years is widening inequality.”

She said Labour could only cement its moral purpose by making it clear that its mission is to secure greater equality of wealth and income, as well as equal rights between sexes and races. “We have to set out what we have always believed in our heart of hearts. We have to put equality at the heart of our crusade and values, and promise to fight the big new forces that are now driving inequality across the globe”, she said.

Voting in the Labour leadership contest closes at lunchtime on Thursday, with the leader announced on 12 September.

As late as Tuesday, only 50% of the 554,000 people entitled to vote had returned their ballot papers. This prompted the Cooper camp, accused of running an over-cautious campaign until now, to argue the party electorate was taking its time to decide before the ballot closed.

Cooper said: “The next seven days could well decide the next 10 years.”

Jeremy Corbyn, the leftwinger speaking to packed and enthusiastic meetings across the country, remains the odds-on favourite to win, although the shadow home secretary has enjoyed a week in which she seized the domestic political initiative by demanding David Cameron accept 10,000 refugees from the war-torn Middle East.

There are signs that voter turnout is highest among those who have spent £3 to register as party supporters, thought to be Corbyn supporters, but with turnout lowest among party supporters in the unions.

Labour leadership candidates Jeremy Corbyn, Yvette Cooper, Liz Kendal and Andy Burnham
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The Labour party leadership candidates: Jeremy Corbyn, Yvette Cooper, Liz Kendal and Andy Burnham. Photograph: Paul Kingston/AFP/Getty Images

Clause IV sets out the party’s aims and values and says that Labour should aim for “a community in which power, wealth and opportunity are in the hands of the many, not the few”. Cooper added: “I don’t think we need to start from scratch. We should be confident about our values, but we need to add to clause IV so that core purpose is explicit.”

 

Cooper believes the change was not window dressing, but would provide a modern ideological framework that united the party and reflected new insights into how a globalised economy was deepening inequality.

The new clause IV, she said, would give the party an agreed ideological framework to combat the four new forces driving inequality and so lower growth – a polarised labour market, the absence of equal chances in the early years, widening wealth inequality fostered by failings in the housing market, and the return of discrimination and prejudice.”

First written in 1918, the original wording backed the common ownership of the means of production, distribution and exchange, and was interpreted to mean public ownership. Earlier in the campaign, Corbyn also spoke of recasting clause IV, but has since appeared to backtrack.

Cooper, however, rejected a rewrite that went closer to the original version: “We are not going to win the elections of the 2020s by going back to the politics of the 1970s and far earlier. It’s more radical to be talking about Sure Start, empowering parents, the housing market and combatting corporate high pay than it is to spend billions of pounds to shift power within an energy company from one small group of people to another small group based in Whitehall.”

Cooper added the governor of the Bank of England, Mark Carney, warned that inequality damaged growth, while the director of the International Monetary Fund, Christine Lagarde, had spoken of a gilded age and the impact of widening inequality on reducing global growth.

On the question of Syrian refugees, she attacked the prime minister’s response, saying Britain could not fulfil its commitment to Europe if it refused to take any of the refugees already on the continent, notably some of the 50,000 that had arrived in Greece in a month.

Cameron said on Friday that Britain would only take an unspecified number of asylum seekers from UN-run refugee camps on the borders of Syria.

Cooper said: “Clearly it is better to have a legal asylum route from the camps so as to prevent people travelling in the first place, but right now, given the scale of the humanitarian crisis, we also have to do our bit to help Europe deal with those who have fled into European democracies. We need a managed response by government, otherwise some parties right here and in Europe will use this to play the politics of fear and division. What is striking right now is the number of people that want to say the British way of doing things is to provide help. People are saying they do not want to turn inwards and be a darker and narrower country.”

 

She said 43 councils had now written to her in less than 24 hours saying they wanted to help, and she would be meeting with Citizens UK next week to build on the very British desire to help.

She condemned remarks by Viktor Orbán, the Hungarian prime minister, on Muslims trying to enter Europe and accused him of “preying on the anxiety about the disorder on the border to escalate fear and division.”

“It is deeply chilling to hear a European, elected prime minister say this, given the distress we see from the crowded families on the trains,” she said.

She opposed EU refugee quotas, saying “it is better for people to come forward voluntarily though their communities, churches and councils to help rather than it being decided by a European bureaucracy. But if we do it that way, the onus is then on individual government, including Britain, to act.”

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This Is the Biggest Mistake Young Job Changers Can Make

 
Cashing out your  401(k) is a bad idea at any age but can really kneecap millennials and Gen X-ers
  June 26, 2015 — 2:12 PM EDT  
  
   
Photographer: Getty Images
     

 

 

Consumers who feel better about their finances and job prospects spend more, and that's a huge driver of the U.S. economy. The latest consumer sentiment numbers, which blew past the estimates in a Bloomberg survey, are a good sign.

But a rise in confidence also leads employees who are antsy in their jobs to move on—and cash out of their company's 401(k) while they're at it.

In the year ended Mar. 31, 2015, more than 40 percent of 401(k) participants between the ages of 20 and 29 cashed out all or part of their plan balance after leaving a job, according to Fidelity, rather than leaving it in the plan, or rolling it into a new 401(k) or an IRA. Even for those between the ages of 40 and 49, the cash-out percentage was high, at 32 percent. 

 

Cashing out means losing gobs of money to taxes and penalties. There’s the 20 percent your old plan will send to the IRS to cover taxes you may owe, and a 10 percent penalty for withdrawing money before age 59½. For someone in a top tax bracket, the bite could be even bigger. That’s a huge price to pay to get at your own savings.

  
  

Over the long run, cashing out early takes a big toll. You lose out on earnings that ideally should be compounding, tax-free, over decades.

There are three better options.

Leave it with your previous employer

Pros: If you quit when you're 55 or older, and your old employer lets you stay in the plan, you gain flexibility in terms of when you can withdraw money. As long as you left during or after the year you turned 55, you won’t pay a 10 percent early withdrawal penalty on distributions from your plan (you will pay income taxes). If you roll it into a new plan, you can generally touch it without penalty only at age 59½.

 

Cons: If your balance is below $5,000, you may not be allowed to keep it in the plan. If you leave 401(k)s at a bunch of former employers, you could pay a lot in fees over time, and it’s a pain to keep track of them.

Roll it into your new employer’s plan

Pros: Having assets in one spot is more convenient, and you pay only one set of fees. Depending on your plan, you’ll likely be able to take out loans against your balance.

Cons: You have to make sure your new plan accepts rollovers. And there may be funds you like in your old plan that aren’t in the new one—if your old one offers a variety of low-cost index funds, check that your new plan does, too. Fees could be higher and the services offered may be different. You can get a feel for what funds are in a plan at Brightscope’s website, and check how good your current or future 401(k) is, with this interactive tool from Bloomberg.

Roll it into an IRA

Pros: Your money in a traditional IRA still grows tax-free, but the range of investments to tap can be wider.

Cons: There have been concerns about conflicts of interest when advisers recommend rolling 401(k) money into an IRA. The fees may be higher than in a new employer’s 401(k), where you often benefit from institutional pricing. (That said, if you’re with a small company, where fees can be higher, you might find products with lower fees with an IRA.) Also, you can’t take loans out from an IRA.

The easiest way to roll into an IRA: Have your company write a check directly to the firm setting up your IRA. If you have the check made out to you, an employer may still send that 20 percent to the IRS to cover taxes. Then you have to come up with the money when you open an IRA, or the IRS may view the difference as an early withdrawal.

If you’re a procrastinator, the direct route may be best. If you don’t roll the money into a tax-deferred vehicle within 60 days, it will be taxed as a withdrawal. 

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Why we should let our children fail

When she realised her risk-averse parenting was holding back her children’s progress, Jessica Lahey took a step back and gave her boys the freedom to make their own mistakes
 

Jessica Lahey with sons Finn and Ben

I became a parent and a secondary school teacher in the same year. During my first decade raising two boys and teaching hundreds of children, I began to feel a creeping sense of unease, a suspicion that something was rotten. But it was only when my elder child started secondary school that my worlds collided and the source of the problem became clear to me: today’s overprotective, failure-avoiding parenting has undermined the competence, independence and academic potential of an entire generation.

Over a decade of teaching, I’d seen my students descend in to a constant state of fear and trepidation, a state that spells disaster for learning. When students are too afraid to take intellectual risks, too hesitant to raise their hand and take a chance on an idea that could change the course of class discussion, teachers can’t teach. It’s that simple.

We’ve ended up teaching our kids to fear failure – and, in doing so, we have blocked the surest path to their success. Out of love and a desire to protect our children’s self-esteem, we have bulldozed every uncomfortable bump and obstacle out of their way, depriving our children of the most important lesson of childhood: that setbacks, mistakes and failures are the very experiences that will teach them how to be resourceful, persistent, innovative and resilient.

I didn’t intend to teach my children to be helpless. On the contrary, I thought my kids would grow up brave, in the sort of wild, free idyll I experienced as a child. I wanted them to explore the woods with a pocket knife and a couple of cookies shoved in their pockets, build tree houses, shoot handmade arrows at imaginary enemies. I wanted them to have the time and the courage to try new things, explore their boundaries and climb one branch beyond their comfort zones.

But somehow, somewhere, that idyllic version of childhood morphed into something else: a high-stakes, cut-throat race to the top. The pressure to succeed from an early age has ramped up. There’s no longer room in our children’s schedules for leisure time in the woods, let alone opportunities for them to problem-solve their way out of the muck and mire they encounter out there. The more successful our kids are as students, athletes and musicians, the more successful we judge ourselves to be as parents. What kind of negligent mother allows her kids to play alone in the woods, with pockets full of sugar?

Jessica Lahey with sons Ben and Finn
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Jessica Lahey: ‘The first step is to get honest with ourselves and our children that ­mistakes have been made.’ Photograph: Jennifer Hauck/Guardian

Modern parenting is dictated by fear. Risks seem to lie around every corner – antibiotic-resistant germs, bullying kids, unfair teachers, lurking paedophiles – so when we tuck our kids in to bed at night, free of cuts, bruises or emotional hurt, we have, for one more day, found tangible evidence of our parenting success. Maybe tomorrow I’ll let them walk to school, we tell ourselves, but today they got to school safely. Maybe tomorrow they will do their own homework, but today they are successful in maths. “Maybe tomorrow” continues until it’s time for them to leave home, and by then they have learned that we will always be there to save them from themselves.

 

When tomorrow arrives, and the responsibilities, freedoms and risks inherent in adult life arrive with it, overparented children will be less likely to manage all of it successfully. It’s vital that we give children experience managing this autonomy, to build competence in everything from filling out paperwork to making responsible decisions about risk to expressing their needs and wants to adults.

I’m as guilty as the next parent; I’ve extended my children’s dependence in order to feel good about my parenting. Every time I pack my child’s lunch for him or drive his forgotten homework to school, I am rewarded with tangible proof of my conscientious mothering. I love, therefore I provide. I provide, therefore I love.

While I know, somewhere in the back of my mind, that my children really should be doing these kinds of tasks for themselves, it makes me feel good to give them small displays of my deep, unconditional love. My kids will have their entire lives to pack their lunches and remember their school bags, but I have only a brief window of time to be able to do these things for them.

There’s a term for this behaviour in psychiatric circles. It’s called enmeshment, a maladaptive state of symbiosis that makes for unhappy, resentful parents and “failure-to-launch” children who move back in to their bedrooms after university.

In 2012, 36% of 18- to 31-year-olds in the US were living with their parents; in the UK, 26% of 20- to 34-year-olds were living at home in 2013, a 25% increase since 1996. While part of this is due to increased housing costs, these numbers are part of a trend that has been rising for decades. Doing what feels good as parents has fostered a generation of narcissistic, self-indulgent children unwilling to take risks or cope with consequences.

So, what would be a better way? What parenting practice can help our children acquire the skills, values and virtues on which a positive sense of self is built? Parenting for autonomy. Parenting for independence and a sense of self, borne out of real competence, not misguided confidence. Parenting for resilience in the face of mistakes and failures. Parenting for what is right and good in the final tally, not for what feels right and good in the moment. Parenting for tomorrow, not just for today.

Jessica Lahey
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Lahey says the pressure to succeed from an early age has ramped up. Photograph: Jennifer Hauck/Guardian

The first step is to get honest with ourselves and our children that mistakes have been made, but that we’re learning to learn. The day I finally came to terms with my overparenting, I was determined to start making amends with my children.

I needed to do something immediate, something symbolic, and I knew where to start. My younger son, then aged nine, had never learned to tie his shoes. I blamed this oversight on the invention of Velcro and his preference for slip-on shoes, but, if I’m completely honest, I knew I was falling down on the job. He freaked out when I mentioned the situation, even in my most enthusiastic “Won’t this be a fun project we can do together?” voice. He got frustrated with my instruction, I got frustrated with his helplessness and the entire endeavour dissolved into anger and tears. Tears. Over shoelaces. When I began to look closely at the source of his issue with the shoelaces, I realised that what he was feeling – the frustration and helplessness – was my fault, not his. I had taught him that.

Every time I tied his shoes, rather than teach him to do it himself, I reinforced his perception that I believed the task was too hard for him. Eventually, he and I both began to wonder whether he’d prevail. One day before school, when he’d left his Velcro shoes at a friend’s house and had to wear the backup pair with laces, he said he’d rather wear his wellington boots than try to tie his shoes. He didn’t even care that wearing boots meant he’d have to sit out PE.

 

So, that afternoon, I took out his backup trainers. I empathised with his worry, and I told him that, while the task might be hard for him at first, I knew he could conquer it with some effort and perseverance. I told him I was so confident that we were going to stick with it until he mastered those darned shoelaces. In less than an hour, the embarrassment he’d felt about being the only child in his year who couldn’t tie his shoes was gone. He’d succeeded, and I’ve hardly seen him so proud of himself. All it took was a little time, a little faith in each other and the patience to work through the tangle of knots and loops.

It’s not always going to be this simple. The stakes get higher and the consequences get bigger as our children get older. Lumpy knots and uneven shoelaces give way to flawed university dissertations and botched job interviews, and there’s only so much time available to instil confidence and resilience.

The work of raising a resourceful adult takes time, but it begins with a simple equation. We need to give our children autonomy, allow them to feel competent, and let them know we support them as they grow. This process begins the moment our babies fail to grasp a toy or fall as they toddle across the room and continues until they head out into their own lives. The sooner parents learn to appreciate the positive aspects of hardship and allow children to benefit from the upside of failure, the sooner all of us will have the opportunity to share in the moments of pride such as the one I saw on my son’s face as he tied those laces.

This is an edited extract from The Gift of Failure by Jessica Lahey, published by Short Books, £14.99. To order a copy for £11.99, including free UK p&p, go to bookshop.theguardian.com or call 0330 333 6846

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