Since he has none of his ownby Anatole Kaletsky / February 18, 2015 / Leave a comment
Published in March 2015 issue of Prospect Magazine
Ed Miliband says that voters should judge him not by his personality but by his ideas. If so, Labour is doomed, because Miliband has not made a single economic pronouncement that deserves to be called an “idea.” Although time is running out, he still has a chance to establish economic credibility by launching an intellectual strategy in three parts.
First, as suggested by Alan Milburn and John Hutton, he must decisively refute the Tory myths that Gordon Brown’s policies were responsible for the 2008 financial crisis and that Labour’s economic record is a cause for embarrassment rather than pride.
Second, he must convince voters that the root cause of the crisis and subsequent recession was the over-zealous application of Tory free-market principles. This had consequences for financial deregulation, macro economic management and the support or nationalisation of banking systems: faster and more aggressive government intervention was needed.
Having done all this, Labour’s economic strategy must move on to its third and most important objective. Miliband must explain that a new model of global capitalism has been evolving since the 2008 crisis and that Labour will support this evolutionary process, while the Tories will try to resist it.