Originally Posted by KJ_Red:
“Seems to me you haven't a clue when it comes to economics. Allow me to educate you.
Among our [many] problems are: weak capital spending; a fiscal policy which [at the ZLB] cannot cushion the economy from adverse shocks; stagnant productivity and real wages; and unaffordable housing.
Now it seems to me that Labour certainly DOES have some decent answers to these. A NIB can step up investment in new technology and infrastructure; Labour’s fiscal rule increases flexibility of policy; the pledge to increase house building is obviously a good idea [and just because previous govts haven't done this doesn't make it a bad idea.. if you think that through to it's logical conclusion] ; I would also add that John McDonnell’s claim that there would be a clear boost to the economy from worker ownership is also correct; it is a proven fact that worker democracy can raise productivity.
Granted, Labour’s ideas aren’t fully worked out yet, but this is only to be expected more than 3 years from an election. The fact that McDonnell is seeking advice from top quality economists augurs well, though. Don't you think?”
Its magic money tree and nothing else. No one is going to lend Corbyn money, you might as well burn it, and borrowing, or printing, it, died as a sane economic idea - when Brexit started to put inflation and eventually interest rates up. Interest rates rising would easily eat up any extra borrowing.
He's also returned to his ideas of taxing business more - as a good communist would - which would be suicidal in a post brexit environment - when we would be desperately trying to get business to stay and come here. Corbyn essentially thinks business exists to do what he tells it - because he think in terms of an old style command economy where the party pretends the workers own things , but takes all the decisions, usually badly. . He would be in for a shock in practice.
And he's also offering higher tax rates, higher wages, and greater union power - which would complete the process of putting investment here off - and make productivity worse ,not better , and lead to even more unemployment, and inflation.
Corbyn is also so dogmatic, and innumerate, that he's also already promised no NHS cuts or closures, a restoration of benefit cuts, an end to student loans, and better social care - which has already spent the 50 billion a year extra he wants to spend.