In a welcome twist of events, the May government adopted Labour Party policy this week. Described as more “Balls than Osborne”, Chancellor Philip Hammond announced that Conservative economic policy = fiscal discipline + investment for growth.
Whilst this positively Keynesian economic approach is welcome, two things need to happen.
Firstly, Government borrowing should stimulate economic growth through an active industrial policy focussed on the future digital economy. With hard Brexit now on a timer, Britain can’t afford to fall off the European Digital Single Market without a coherent vision of a Digital Britain.
And secondly, Jeremy Corbyn and John McDonnell need to set out how Labour’s economic strategy will deliver on Jeremy’s promise of bringing the Keynesian economic approach of the 20th century into the 21st century.