For anyone worried that the Labour Party has not done enough to challenge the flawed economic philosophy that enabled, and failed to foresee, the 2008 financial crisis, the policy review report One Nation Economy – summarised on this blog [Shifting Grounds] by Jon Cruddas – will come as something of a relief.
Our economy had become horribly unbalanced, with far too little investment outside the confines of the M25, and wages in most sectors being driven down and substituted by unsustainable levels of consumer debt. The financial sector, upon which growth became over-reliant, was itself floating on an ocean of debt. The policy commitments it contains are somewhat limited, but One Nation Economy at least acknowledges that our economic problems are profound, rather than attributable to the decisions of a single administration.
Yet several gigantic questions remain about Labour’s vision for the economy. Indeed, some of the most serious flaws of Britain’s pre-crisis growth model have been, if not ignored, at least glossed over.
Click here to continue reading this post.
Image: Paul R Bednall