The Mudcat Café TM
Thread #157811   Message #3728685
Posted By: GUEST,Shimrod
07-Aug-15 - 02:59 AM
Thread Name: BS: Politics: UK Labour leadership election
Subject: RE: BS: Politics: UK Labour leadership election
There was an interesting article in yesterday's Independent newspaper by one of their economics editors, Ben Chu. He made the point that if an organisation is to move forward, it has to invest for the future and such organisation's often need to borrow in order to invest. In the current business world, companies are not investing enough in R&D, new equipment etc. because shareholders are demanding short term gains. Governments are not investing enough either but, instead, are obsessed, like Osborne, in 'reducing their deficits'. Chu asserts that the failure of governments to borrow and invest - in things like infrastructure (and, I would add, education) - is storing up trouble for the future and reducing the ability of nation states to grow. Corbyn is proposing to borrow in order to invest (orthodox economics) and is labelled as an 'extremist'! In a sane world, Osborne should wear the extremist label. But the pernicious cult of neo-liberalism has taken us so far from sanity that we no longer recognise sanity when we see it!