Open University economics lecturer Alan Shipman spoke on July 24 about how Jeremy Corbyn’s proposed economic policies (or ‘Corbynomics’) were “a blend of economic reason and political fantasy”. In fact, Shipman asserted, Corbynomics was “shockingly reasonable”. Insisting that “faster growth and higher wages must be key to bringing down the deficit”, for example, was “hardly controversial”. The “guilty secret of Corbyn’s plan”, however, was that he was “happy for deficits to continue” in times of economic stability so that public investment could take place.
Shipman then wrote about how ending the “accounting separation” between “public capital and current spending” (or short- and long-term expenses) was key to Corbynomics. Emphasising how “economists have repeatedly found that the returns to public investment actually match or exceed those of most private projects, and that it makes sense for the Treasury to undertake them because its borrowing…
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