Flawed political economics are behind the calls for fiscal conservatism

September 10, 2013

Think Left

Flawed political economics are behind the calls for fiscal conservatism

By Michael Lloyd 

Article previously published here by Class Online, and reproduced by kind permission,

Notwithstanding the social democratic motivation of the writers of the recent essay Moving Labour ‘into the black’, there is a fundamental political economic flaw in their representation of the situation Labour are expected to inherit in 2015.

Their arguments were put forward in their initial leaflet and are starkly illustrated here:

“And third, confronting the reality of limited resources reveals priorities as the true currency of politics. In the coming years, the central distinctions will be about what the political parties choose to spend scarce funds on as much as the total they plan to spend.”

There is a confusion implicit in this description. Clearly in any economy there are going to be limited real resources. The capacity of a national economy…

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