Rightwing economic myths could derail Burnham’s project – to destroy them, look to Keynes
Borrowing can be good, there is no such thing as the ‘nation’s credit card’, and, yes, you can buck the markets – as previous governments have shown
TL;DR
- Andy Burnham's political project invokes nostalgia for a post-war Britain where working-class lives steadily improved.
- The article argues that Burnham's government is constrained by neoliberal economic ideas, such as the 'nation's credit card' analogy and the idea that governments cannot 'buck the market'.
- These ideas are presented as myths that serve the interests of those who favor shrinking the state and hinder necessary public spending and intervention.
- The author suggests that a country printing its own currency cannot go bankrupt like an individual, and that 'anything we can actually do we can afford', referencing Keynes.
- Historical examples, including the Attlee government's creation of the welfare state and recent government interventions like the furlough scheme, show that governments can and do 'buck the market'.
- Re-industrializing Britain requires the government to 'pick winners', a practice common in countries like China and South Korea, but taboo under neoliberalism.
- The article concludes that shifting away from market subservience is crucial for governments to pursue domestic economic goals, and that new economic thinking, inspired by figures like Keynes, is needed.