Labour's far left takeover is a setback for those hoping for sound economic policy to prevail.
£500bn for "investment" is a made up number, and crazily high. It emerges from an ideology of regaining control over commanding heights.
Markets won't welcome it, because they will rightly suspect there will be no pressure to extract returns from the investment to pay the debt
Any investment program needs to focus on things with hypothetcatable returns, and leave fiscal space for another crisis.
The fixation on the state rebirthing "manufacturing" is depressing [maybe, as John Kay suggests, male chauvanistic] nostalgia.
Govts already struggling to keep existing public good/insurance functions in good repair, and with Brexit to deal with...
...it's laughable to think a govt could also deliver an industrial policy, even if one were remotely desirable.
It's not long since JM was recommending 'People's quantitative easing' to pay for this. A colossal joke of a policy borne out of..
JM's view that the BoE [agent of neoliberals] QE and other policies were just about helping friends in banking and capitalism, plus a ..
misunderstanding/indifference/ to how money and inflation work, alluded to in the apt 'magic money tree' jibe by @ChrisLeslieMP
While this economic nonsense is being spouted, the real econ challenges and failures of today will go unchecked/unscrutinised
And that's the problem: wd be nice to think 'socialism with an ipad' was just a hilarious mumbling of a Marxist, fun in the retelling..
But it's not, it will make the compass-less Brexiteering govt of the day look like expert tillers by comparison.
Who knows, it may embolden the extremes of the economic right who think that the state is always the problem...
Or make pragmatists who urge state action on some real issue of the day easily dismissable by association as Marxian transformationalists.