Biden has abandoned 40 years of US neo-liberalism. He is attempting the greatest change in US economic policy since Reagan. This change in economic policy will make the US a more formidable economic competitor to China.
Austerity measures are integral to the current economic policies of the US and UK. They amount to an all-round attack on wages and the social wage while there is a temporary boost to demand. That is why it is extremely foolish and misleading to compare them to the policies of Corbyn, McDonnell or Keynes.
Keir Starmer’s speech on A New Chapter for Britain was heralded as a breakthrough moment where he would simultaneously set out his vision for the economy and society while beginning to outline a wholly different economic policy.
If that was its purpose, it failed miserably in every respect.
Already reeling from job losses and pay cuts, workers and those on fixed incomes will see their living standards fall even further, if central bankers’ policy to increase inflation is successful.
The following article by Michael Burke, on the economic framework being set out by Labour’s Shadow Chancellor John McDonnell, was previously published by Socialist Economic Bulletin.
Labour lost the last general election because it had no economic credibility, as the overwhelming bulk of opinion polls show. John McDonnell’s new ‘Fiscal Credibility Rule’ decisively and correctly addresses that issue.
The following article, by Michael Burke and John Ross, on Labour’s economic policy, was previously published by Socialist Economic Bulletin.
Labour is now carrying out extremely effective campaigning against Tory policies – on tax credits, on the sweetheart Google taxation deal, in support of the junior doctors and pinning the responsibility for the crisis in the NHS squarely on the Tories. This excellent work needs to continue and be strengthened.