Hostage Nation

Larry Elliot, former Guardian Economics Editor in today’s Guardian

Rightwing economic myths could derail Burnham’s project – to destroy them, look to Keynes

The 1980s was a decade of deindustrialisation, asset-stripping and financial deregulation that has shaped modern Britain – and not in a good way.

But listen a bit more closely to the (Burnham’s) speech and it becomes clear that Burnham is struggling to find a way to turn back the clock. For a start, he might not be given time. Energy bills are forecast to rise sharply this winter. John Healey’s first budget, in less than a month’s time, is expected to raise taxes or cut spending – taking money out of an economy that is already struggling.

There’s no question that Burnham and Healey would prefer not to be taking these actions but feel they have no choice. Burnham may well rail against 40 years of neoliberalism. He may think neoliberalism was a dud. But his government is constrained by neoliberal ideas and the language used to express them. Burnham and Healey would never use this language themselves, but that’s irrelevant. To make a real difference, they need to tackle head-on the nostrums of the past four decades. Otherwise they will be for ever in thrall to them.

Top of the list is the idea that the UK government is no different from a household. That means it should match its spending to its income as closely as possible, borrowing prudently and within tightly defined limits. Otherwise it will “max out the nation’s credit card” and risk spiralling into unsustainable debt.

This analogy has the benefit of sounding like a statement of the obvious to many voters, but is actually entirely false. There is no such thing as the nation’s credit card, and a country that prints its own currency can never “max out” or face bankruptcy in the way an individual can.

www.theguardian.com/commentisfree/2026/oct/01/rightwing-economic-myths-andy-burnham-borrowing-markets

Worth a read.

At the moment we seem to be ‘hostage’ to those useless and economically illiterate ‘fiscal rules’ imposed by Reeves, which Burnham promises to stick to. He will achieve none of his fine conference promises if he tries to do it.

FGT, I agree with you. USSR is led by a man who would be emboldened to expand his plans if Ukraine falls.

I think that the 10 year plan will prompt more questions than Burnham’s conference speech.

However, I do think it was a good speech pointing the way the country will be going. There is some stuff e.g. NSC which will be a big spend, but until much more detail is thrashed out, we can’t ask the necessary questions.

Small point (until I read your link tomorrow MaizieD) to FranP which is, if we don’t support Ukraine, Russia will just eye us all up surely? Poland is a gatekeeper too. Yes it’s expensive but I don’t think we have much choice.

I’m bumping this as I’m anticipating lots of ‘how is he going to pay for it?’ after Burnham’s conference speech today.

This report could well provide answers.

I am also reading and learning. Thank you for posting the article.

Thanks for your response, FranP

Are you disagreeing with the proposals in the report and offering an alternative solution here?

The UK has a huge financial hole. A deficit that we cannot get out of unless we all pull together, get rid of our entitled attitudes that the mysterious "they" should do everything.

How do you think that should work? Does the government have any part to play?

Also, what is this ‘long drawn out war’ you refer to?

Any particular war you have in mind, FranP?

The UK has a huge financial hole. A deficit that we cannot get out of unless we all pull together, get rid of our entitled attitudes that the mysterious "they" should do everything. But it starts at the top with the big corporations. Dividends and bonuses should be only after investment. No amount of differing economics is going to change that. We also need to mind our own business and stop spending on other countries' wars.
As to those, how is it helping your people running a long drawn out war to bankrupt and destroy their lives?

Thank you for the recommendation.

Had a quick skim whilst The Imp was doing his homework (6yr old)

Not sure there is anyone in the present government with the cajunas to buck the self imposed fiscal rules 🤦‍♀️

Thank you. I look forward to reading it.

petra

I know you have seen this documentary MaizieD but there might be others who would like to know how the system works for the wealthy.

youtu.be/150ERSe0Xzw?is=0FDLaS2esRh-gBRo

It's excellent. Everyone should see it. I think John Christensen has made another documentary now. I'll see if I can find it.

I know you have seen this documentary MaizieD but there might be others who would like to know how the system works for the wealthy.

youtu.be/150ERSe0Xzw?is=0FDLaS2esRh-gBRo

I am grateful to both of you for giving it a go.

From not form

I have skimmed through. What I have read thus far, I agree with and like.

I’ll read in more detail a bit later, but thank you for the link.

I’m one that definitely needs a little more “education” around how financing a country actually does or should operate.

“We cannot afford it” always seems like a complete cop out form governments and having both lived and worked through 14 years of austerity, working within the Civil Service I’ve seen first hand how that damaged services, staff, the economy.

Thanks I’ll be back

I will read it maizie, I disagree with driscoll on most things but he was treated terribly by the labour party. It was the moment I realised I was mistaken about starmer.