Ed Balls is delivering his keynote economic speech today.
I have no real idea what he will say but note the reports this morning that he will stress long term credibility. This, of course, is meaningless - he was hardly going to espouse long term irresponsibility, was he?
So what should he be saying? First that without growth neither we nor any other economy will get out of recession.
Second, growth must come from investment right now.
Third, since the private sector is not going to invest the state has to - and it is responsible to take advantage of low interest rates to do so. A whole raft of options are available.
Fourth, this investment pays. First it cuts benefits. Second it raises tax. Third, if focused heavily on UK based infrastructure a great deal of the benefit stays here in the UK. And this means that investment can actually pay for itself.
Fifth, as Samuel Brittan said last week, the aim for Lloyds, RBS and Northern Rock should not be sale as if continuation of the existing banking structure were enough when it clearly has failed completely and utterly. That would be a big mistake. These banks must become the core of regeneration of our economy right now by being the agents for injecting money - the money created by quantitative easing - into the economy - and if that means buying out residual private stakes for the time being, so be it.
Sixth, international measures are needed in which the UK must be an active participant to regulate the banks, ensure an orderly right off of debt, expose risk in tax havens and elsewhere through greater accountability and transparency and to demand that banks fully cooperate on issues such as tax collection as part of the grand bargain the world's governments are making with them to stay in business.
Seventh, domestically the tax burden must be shifted onto those best able to pay it.
Eighth, the tax gap must be aggressively tackled.
And at all times the focus must be ensuring people can live without fear - fear of unemployment, fear of homelessness, fear of poverty in old age, fear of young lives blighted by their being no prospect of them working.
The first eight are important.
The last issue is vital - Labour has to remember, always it's job is to deliver freedom from fear - the very fear the market wants to create and maintain to ensure people are forced to work on unacceptable terms: a fear deliberately reinforced by unemployment that suits large companies oh so well.
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Yes well good luck hoping Labour, the people who bought us the Atos testing of the disabled, will bring us a future without fear. Here’s a sample of when the delightful Yvette Cooper gave the ok for disabled folk who can’t walk far to be tested as though they have wheelchairs – when they don’t; “The shock plans for ‘simplifying’ the work capability assessment, drawn up by a DWP working group, include docking points from amputees who can lift and carry with their stumps. Claimants with speech problems who can write a sign saying, for example, ‘The office is on fire!’ will score no points for speech and deaf claimants who can read the sign will lose all their points for hearing.
Meanwhile, for ‘health and safety reasons’ all points scored for problems with bending and kneeling are to be abolished and claimants who have difficulty walking can be assessed using imaginary wheelchairs.” Cooper passed that lot.
Full eye-opening text is at http://www.benefitsandwork.co.uk/blogs/2010/04/13/thousands-will-lose-benefits-as-harsher-medical-approved/
I dare say if this were wider known neither Cooper (nor Balls by association) would have a shred of credibility left between them. it’s difficult to suggest these two could ever represent any kind of courageous state when to atone for the sins of the very wealthy all they can suggest is outright abuse of society’s weakest and most vulnerable members.
BB
“Labour has to remember, always it’s job is to deliver freedom from fear”
Why just Labour? That implies that you believe that Tory and Green politicians are somehow responsible for terrorising us. Which is pretty odd (well, for Greens anyway).
Also, seeing as Labour gave us the War on Terruh, which was pretty the definitive example of legitimised state terrorism, I don’t really think you’ve picked the right horse to receive your back-handed endorsement here, Richard. I respect your political insight and your financial expertise but I’m completely baffled by this. Labour have barely deviated from the Blair/Brown program of Neoliberalism-Lite.
Eg: http://www.politicalcompass.org/ukparties2010
Why you think they are deserving of having your excellent words put into their mouth I cannot fathom. Of course Labour should deliver freedom from fear. They should be backing the unions’ strikes. They should be calling for banks to be nationalised/forcibly mutualised, etc. etc.
But they’re not. They’re busy selling out by regurgitating the coalition’s policies in a mildly sanitised form. Ten years ago their manifesto would have made the Tories soil their underwear with envy. I just don’t get it.
I live in hope Labour can deliver
There is no other way right now I can see a left alternative being delivered – much as I in my heart am at least as much a Green
So I carry on arguing what Labour should do
I’m under no illusion about what they also are – far too often
In Norwich South the greens doubled their share at the last election to 14.2%, well above the 10% at which they’ll start gaining traction.
I think you might be a little too hasty in your dismissal of the Greens.
I specifically referred to Norwich as a place where I know there’s a real green alternative yesterday!
I agree there are places where break throughs can happen and I’d welcome it
Sadly I agree with your sentiments. I am a Green supporter but I’m under no illusions that they’ll sweep the next election in a landslide. The UK electoral system is too dysfunctional and the media’s political coverage too corrupted by vested interests and cynicism to ever produce such a radical swing.
By the way, have you seen this? Notice who has the largest share of the vote, and who is second. Also note the Tories coming in fourth.
How can he say he won’t deviate from the present tory spending cuts and yet advocate growth at the same time?
Can’t really be done, can it? He seems to be arguing for growth through tax cuts! Yet he must know he cannot reverse the stagnation we have now unless he is prepared to spend, and spend big!
It seems to be all big ideas and no real substance!