Labour government fails to escape austerity’s grasp | William Keegan

In a thought-provoking analysis, the Chancellor’s blame game is scrutinized, questioning her stance on economic inheritance and austerity measures. The impact on pensioners struggling with heating bills, the refusal to lift the two-child benefits cap, and dismissing proposals for social care contributions are highlighted. There are concerns that Labour’s focus on “red wall” voters hinders progress for the wider electorate, evidenced by opposition to rejoining the single market.

As the Chancellor tries to attract foreign investors post-Brexit, domestic capital projects are being cut, potentially hindering growth plans. The adherence to fiscal rules inherited from the Tories may stifle long-term public investment, echoing the damaging effects of past monetarist policies. The need for a rethink on fiscal rules is emphasized by the potential adverse impact on economic growth.

Drawing parallels to Thatcher’s failed monetarism experiment, the dangers of blindly adhering to fiscal rules are exposed. The book by Tim Lankester offers valuable insights, prompting reflection on the current government’s approach. Overall, there is a call for a more pragmatic and balanced economic strategy to foster sustainable growth.

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