The FT reported last night:
Boris Johnson is preparing to spend billions more on health and social care, including a hospital building programme and a far-reaching plan to ease the costs of care in old age as he seeks to lay out an expansive post-Brexit reform agenda.
But questions are likely to be raised about how new PM will fund the required spending.
So let's come down to what this is all about.
Let me say it loud and let me say it clear. Boris Johnson does not care how he is going to fund these promises. And that's because he knows he has a central bank. And he knows it can create money. And he knows he can use that power to guarantee he wins an election. And that is exactly what he intends to do.
So whilst Labour has been going round writing fiscal rules that it knows are meaningless because they could never apply and at the same time they have been rubbishing modern monetary theory when they know that it describes how the economy really works Johnson has been absorbing all this. And like the Republican glove puppet he really is he has decided to do what every GOP President has done in recent decades, which is ignore all financial constraints. That is because he knows, first of all that, he can because deficits can be covered by quantitative easing, and second that buying the electorate is the result and that’s what he wants to do.
And if Labour loses as a result of falling into this trap they have only theselves to blame because some of us told them to change their ways long ago and they did not. Now they'll have to instead present themselves as the austerity party. Which is a sure fire humdinger of an election strategy against Boris Jo0hnson and a promise of lots of new hospitals.
Of course I am annoyed with Labour. For a long time it’s been known that ‘How are you going to pay for it?’ is stupid question. The answer has always been ‘By putting people to work to do it’ and now it is the Tories who are going to exploit that fact for populist gain, with outcomes that will overall most likely be deeply prejudicial to many in the UK. But Labour has never had the courage to break the austerity narrative and now Johnson will. It’s deeply discouraging.