Labour is wrong to choose austerity

JVL Introduction

This is another clear analysis of why austerity is a choice – and an unnecessary one at that – that this Labour government has made.  Alexander argues here that it is useful for this Labour government to emphasise the “missing” £22 billion.  Many economists, not only on those on the left, make it clear that other choices are available and that choosing austerity is disastrous.  In this interview with Owen Jones, economist Danny Blanchflower, who originally backed Labour, outlines its harmful impact on the (capitalist) economy.  Those of us on the left also emphasise the horrendous and enduring impact of ongoing austerity on those with the narrowest shoulders. Governments can, for example, take on debt; the issue is what this will be spent on. Spending it on investment – eg in infrastructure, training, research and development and public services will help the economy rather than drain it.  But, as Dominic Alexander says:  “It would be easy to make a centre-left argument that borrowing to invest in public services is necessary for economic recovery after fourteen years of austerity, and that the borrowing would be repaid through a healthier economy a few years down the line. However, even such a moderate, social-democratic class argument is clearly beyond the capacity of Starmer and Reeves.”  (my emph) 

This article was originally published by Counterfire on Sat 31 Aug 2024. Read the original here.