Throughout January, there has been much excitement in the main stream media about the state of the government finances. Apparently the ‘bond vigilantes’, by reducing the amount they were prepared to pay for a government bond, were expressing their displeasure with proposed government policies. We were told that Reeves was ‘all out of money’ and would likely … Continue reading Reeves’ False Debt and Interest Problems
bank of england
Introduction to “Fiat Socialism” by Carlos Garcia Hernandez.
Published by Lola Books, 2023 By John Clayden Worker's MoneyI remember well over thirty years ago standing outside one of the biggest halls in Newcastle upon Tyne with a group of unemployed workers lead by a great unsung hero of the working class - Andy Robertson an oil rig worker who had organised his fellow … Continue reading Introduction to “Fiat Socialism” by Carlos Garcia Hernandez.
MMT Debate
Below we reprint selections from a lively debate on Modern Monetary Theory (MMT) that has been taking place under the auspices of the Workers’ Party of Britain. Those who are interested can access the full debate on the Workers Party website. MODERN MONETARY THEORY (MMT) FOR WPB Chris Williamson No political party in Britain has … Continue reading MMT Debate
The Independence of the Bank of England—Editorial
Central Bank Independence Readers will be familiar with the term ‘independence of the central bank’. Of late, it has been much referred to in the media. The tone is always that this independence is a good thing. And Labour proudly remind us that the Bank of England (BoE) was made independent by Gordon Brown in 1998 when he … Continue reading The Independence of the Bank of England—Editorial
How to pay for it. The case for the elimination of the cap on child benefit.
An imaginary interview between the BBC and a progressive Labour Party by Michal Lerner BBC: Labour says that it will eliminate the cap on child benefit. That will cost some £1.3 billion. How will Labour pay for it? LP: A Labour government will pay for it the way British governments pay for everything that has been approved by … Continue reading How to pay for it. The case for the elimination of the cap on child benefit.
Starmer’s Moment of Weakness Approaches
Martin Seale Keir Starmer has a primary objective – that Labour forms the next government. For that to be achieved he believes that he will have to convince voters who have never voted Labour before to switch their vote to Labour in the 2024 general election. Anything that in any way endangers this happening will be … Continue reading Starmer’s Moment of Weakness Approaches
What You Should Know about Labour’s Economic Policy.
The Labour Party wholeheartedly supports the war on Russia in Ukraine and sanctions against the import of cheap energy from Russia. UK support for sanctions is the main driver of domestic inflation in Britain as energy is an input into all products and services. Labour is not committed to any significant revenue raising measures by … Continue reading What You Should Know about Labour’s Economic Policy.
Public Sector Wage Increases and Inflation—Editorial
Public Sector Wage Increases and Inflation British society as a whole is poorer because of the war it is waging against Russia. The sanctions that it has imposed on Russia have resulted in dramatically higher energy prices. Britain must give up a much larger share of its income to consume the same amount of energy. How is … Continue reading Public Sector Wage Increases and Inflation—Editorial
Fiscal Rules – A Scam To Justify Austerity — Editorial
Early in his Autumn Statement to Parliament on 17th November, the Chancellor, Jeremy Hunt, announced two new fiscal rules: “…I also confirm two new fiscal rules. The first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period. The second is that public sector borrowing over … Continue reading Fiscal Rules – A Scam To Justify Austerity — Editorial
The Non-Existent UK Fiscal Black Hole— Editorial 2
The story we are being told about UK government finances by virtually every main stream media (MSM) commentator goes something like this. The government wants to spend more than it is raising in taxes. This means that it will have to borrow from the private sector. The private sector may choose not to lend to the government. In … Continue reading The Non-Existent UK Fiscal Black Hole— Editorial 2
The Kwarteng Budget
Kwasi Kwarteng’s Budget Adventure. Dave Gardner Did the then Chancellor of the Exchequer Kwarteng mention the need for extra borrowing when he presented his tax cutting plans to the House of Commons on 23 September? The answer is NO he didn't - although opposition speakers (including Rachel Reeves) did assert that substantial extra borrowing would … Continue reading The Kwarteng Budget
Animal Spirits, Taxing and Borrowing — Editorial
Kwasi Kwarteng is clearly a believer in animal spirits, or more specifically, the animal spirits of the UK private sector. The term ‘animal spirits’ was used by the economist J. M. Keynes to describe the spontaneous forces of vitality that drive human action. Apparently these animal spirits have been held back by too much taxing and … Continue reading Animal Spirits, Taxing and Borrowing — Editorial
On Interest Rates and Mini-Budgets
Interest Rates and Mini-Budgets Martina Seale On May 4th the Bank of England (BoE) decided to raise the Bank interest rate by 0.25% to 1%. The stated purpose of the increase is to help fight inflation. The logic that the BoE is following is really quite simple. Inflation is caused by demand for products being greater that the … Continue reading On Interest Rates and Mini-Budgets
Levelling up or Covering up?
Levelling Up or Covering Up? The government White Paper on levelling up. By Dave Gardner In 2019 the Tories won a general election largely on the basis of capturing seats that have traditionally sent a Labour MP to Westminster. These are for the most part seats in the Midlands and the North of England that … Continue reading Levelling up or Covering up?
How to Pay For It — Q & A
How to Pay for it - 150,000 new council dwelling per year at social rents. By Michal Lerner To win the next general election, Labour must give bold answers to the question ‘How will you pay for it?’. Let us therefore imagine an interview between an interviewer (I) and a member of the Shadow Cabinet (L) and suggest … Continue reading How to Pay For It — Q & A
Sunak’s Agenda is Labour’s Opportunity
Editorial The party which wins the next general election will be the party which presents to the electorate, in the clearest and most convincing way, a view of the role of the state in the society. No one knows what the position of the Labour Party is on the role and size of the state. Keir … Continue reading Sunak’s Agenda is Labour’s Opportunity
How to pay for it. The case of Universal Credit
By Michal Lerner To win the next general election, Labour must give bold answers to the question ‘How will you pay for it?’. Let us therefore imagine an interview between an interviewer (I) and a member of the Shadow Cabinet (L) and suggest how the dreaded question should be dealt with in the context of … Continue reading How to pay for it. The case of Universal Credit
Quantitative Easing, or “How will you pay for it?’
Parliament Notes QE, or printing money, is capitalism’s cunning plan to overcome economic and financial crises. In the massive economic crisis of the 1930s, the US state financed public works with money it hadn’t ‘earned’ from taxes. The economies of the US and Europe have practised it since to avoid the worst disasters of the 2007/8 financial … Continue reading Quantitative Easing, or “How will you pay for it?’
Labour Affairs 