The myth of Corbyn’s radicalism

philmullan Economic growth, Economic policy, Politics, State intervention, Zombie economy

Given the fears generated by the prospect of a Corbyn-led government, just how radical is it likely to be? Should we really expect Britain’s first anti-capitalist government? Certainly not on the basis of what Corbyn and McDonnell and their cheerleaders have been writing and saying about their future Labour government. Read the full essay here.

When the next crisis comes, don’t blame the central bankers

philmullan Debt, Economic policy, Politics, State intervention, Zombie economy

President Trump’s tweets criticising the Federal Reserve bank, and the European Central Bank, draw attention to how prominent central banking has become over recent years. Central banking’s high profile today marks a significant shift from earlier times. Central banking used to be regarded as a necessary activity that most people knew existed, but few could get that excited about.

Increasingly over the past three decades the central banks have attained a much more prominent role, not only in the US but across the mature industrial countries. This has had nothing to do with changes to the calibre of central bankers, or to the development of new banking techniques. Instead, it was primarily a response to the exhaustion of Western politics that became more evident from the second half of the 1980s.

There are three important features of central banking in modern mature economies. First, the misleading fallacy of central bank ‘independence’. Second, the associated sheltering of politicians from responsibility for the economy. And third, the waning efficacy of central banking.

Read the full article here.

How to help British Steel workers

philmullan Brexit, Creative destruction, Economic policy, State intervention, Zombie economy

News broke last week that British Steel had been placed in compulsory liquidation, putting 5,000 jobs at risk. This has sparked debate on what to do about the ailing British steel industry and the people impacted upon. The best, and most honest, way the government can help the employees is to let failing steel plants go under and sponsor all the people affected during the transition into better and more lasting jobs that they should be doing much more to help create.  Read the full article here.

The unravelling of the international order

philmullan Politics, Rivalries, Trade

Tensions over China and trade didn’t start with Trump. As the reality of the West’s economic atrophy has become harder to disguise, particularly in the aftermath of the 2007-2009 financial crisis, rivalries both within the West, and also between the West and the rest, have sharpened. The West is in material decline relative to the expanding parts of the world in Asia. And so it can no longer justify imposing its own geopolitical agenda on everyone else. The old order cannot continue forever, and recognition of this fact is growing. Read the full article here.