Labour took its first step to economic credibility by Jeremy Corbyn’s appointment of John McDonnell as Shadow Chancellor. It was vital to appoint someone who would break from the confused economic policies pursued by previous Labour administrations and in opposition. John McDonnell’s was the correct appointment and he proved it immediately and at Labour conference. His establishing the position that Labour would not run a budget deficit over the course of the business cycle on current expenditure, but would borrow for investment, was precisely the correct position. It was in line with the theoretical analyses of both Marx and Keynes. It provided the framework for the other correct polices that began to be laid out at the Labour Party conference – for example on the National Investment Bank, opposition to removing the budget deficit by cuts to welfare.
The following article by Matt Willgress was originally published by the Morning Star. It sets out some of Correa’s achievements since he was first elected President, including poverty reduction, low unemployment and an economy growing at four per cent a year – all underpinned by a huge increase in state investment, whose proportion of GDP has trebled in eight years.
Eight years ago President Rafael Correa was elected in Ecuador and, as in many Latin American countries in recent years, there’s been a tremendous shift in the country.
Following Syriza’s victory in the Greek elections far wider forces than socialists are supporting the new Greek government’s calls for renegotiation of Greece’s debt – for example the Jubilee Debt Campaign. Before the election letters to the Financial Times and Guardian by leading economists supported this. The following article analysing the the situation after Syriza’s victory appeared on Socialist Economic Bulletin by socialist economists Michael Burke and John Ross.
By Nicky Dempsey
Labour’s recent National Policy Forum was a missed opportunity on economic policy, one with potentially grave consequences. There was no attempt to address the economic crisis that Labour will inherit in 2015. As a result, the Labour leadership has also made it harder to win an overall majority next May, even when the Tories are flat-lining close to 30 per cent in the polls shows they cannot possibly win.