Not new Labour

 

Related Stories

We continue to oppose the government's cuts but we can't promise to reverse any of them. That, in summary, is Labour's supposedly "new" position this weekend.

However, it does not represent, as many seemed to think, any change in the party's economic policy. It is a change merely of political message.

The Two Eds still believe that the government is cutting too far and too fast. They still believe that the chancellor's strategy is not just unfair but will lead to a bigger not a smaller deficit. They still oppose cuts like those to benefits, defeated in the Lords last week, and those which will be challenged in the weeks to come - as the Labour leader made clear this morning.

So, what justifies the talk of a big policy shift? The Eds believe, as I wrote earlier in the week, that Labour's economic credibility will be restored by what they say about the future not the past. Therefore, they have chosen to highlight promises that they won't make.

Yesterday's announcement that Labour will back and not oppose continuing public sector pay restraint was chosen precisely because it would cause a fuss. It was a carefully selected symbol of realism meant to prove that the party is not in denial about the deficit.

Ed Miliband and Ed Balls have been urged by some in their party to apologise for the past as a way of being taken seriously now. They will not do that. They have decided, instead, to sound tough about the future in order to be listened to more in the present.

It should worry the party that after two big speeches by the two Eds many seemed to have misunderstood what they were trying to say.

 
Nick Robinson Article written by Nick Robinson Nick Robinson Political editor

Why change in Scotland will change the whole UK

Proposals to give Scotland more powers is the start of a process of dramatic change and arguments about what UK politics is all about, says Nick Robinson.

Read full article

More on This Story

Related Stories

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    0

    Comment number 240.

    FBL

    Why are discussions of inequality a dogma when the declining marginal propensity to consume is one of the two planks of Keynes` General Theory, as is his proposal that putting money in the pockets of those with a high MPC,ie poor and middle incomes has a multiplier effect.

    This has implications for the political sociology of crisis management was used by Brown and advocated by DSK.

  • rate this
    0

    Comment number 239.

    JH there is lots govt can do to encourage risk capital investment in productive industry without big govt – e.g. limit tax relief on debt repayment, introduce proper asset impairment rules for inflated (fantasy) assets, introduce selected sector tax relief on equity investment and capital gains. Provide SME seed equity. That’s before we even start on finance sector regulation.

  • rate this
    0

    Comment number 238.

    Bryers you speak economics then ? LSE ? If you’ver read Keen you will know he targets Friedmann for special critiscism (monetary theory failed Thatcher and Bernake/Kings QE). If you are a post keynsian you are ok with a bit of proper maths, if you can do much more dynamics, develop a grown up theory of value and dump some of the political (inequality) dogma then we will start to agree.

  • rate this
    0

    Comment number 237.

    JH 235

    The habit of not investing here started early.Between 1870 and 1914 we invested 4 billion in new markets starving industry of capital as our competitors industriaized.

    Late industrialization has advantages in new plant and methods as Europe and the USA have discovered

    An industrial policy protects what we have,nourishes innovation,stimulates growth beyond economic stablization

  • rate this
    0

    Comment number 236.

    FBL 230

    It wasn`t debt deflation that rescued the world economy from the great depression but the war economy when debt increased astronomically.Nor was this debt a brake on growth post-war using Keynesian techniques of demand management.

    Marx,Keynes and the IMF young turks see depression as a consumption crisis.Keen is a late monetarist playing marbles in Friedmann`s backyard.

 

Comments 5 of 240

 

Features

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and how virus spread


  • A young Chinese girl looks at an image of BarbieBarbie's battle

    Can the doll make it in China at the second attempt?


  • Prosperi in the 1994 MdSLost in the desert

    How I drank bat blood and urine to survive in the Sahara


  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban


  • Flooded homesNo respite

    Many hit by last winter's floods are struggling to pay soaring insurance bills


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.