This policy's fatal flaw is the left-winger's belief that government money should be spent on his pet schemesby Anatole Kaletsky / September 8, 2015 / Leave a comment
Published in October 2015 issue of Prospect Magazine
Whatever you may think of Jeremy Corbyn, he has a point about economic policy. Actually he has two good points and one bad one. Corbyn has been right about what he called People’s Quantitative Easing, a potentially transformative idea for restoring economic prosperity that was proposed years ago by several radical economists but has never taken seriously in Britain until it became the centrepiece of Corbynomics.
Corbyn has also been right about the problem to which PQE is a convincing response—the fallacy that government can do nothing more to strengthen Britain’s pitifully slow post-crisis recovery because “there is no money,” in the fateful words of Liam Byrne. In fact, there is more money available to the British government today than ever in history, since the Bank of England has been printing the stuff like wallpaper.
The problem, and the fatal flaw of Corbynomics, has been Corbyn’s belief that the government money which is easily availab…