Originally posted by divegeester
Tax and spend you mean.
Sure I noticed the 2008 crash; I believe Gordon Brown was PM after Blair abandoned the helm when he saw the mess coming.
Yes Gordon Brown was in charge of US property speculation and Irish investment banking and Iceland's highyl speculative banking system and .... not.
The crash was global, so looking for a narrative based on Labour's spending on hospitals and schools is pretty limp. It is just Tory distraction and of course for economic illiterates it worked fine as a political strategy, especially as Milliband's Labour lacked the bottle to argue back at the time. Corbyn is starting the huge task of pulling the public back from that nonsense in the face of huge media hostility. Indeed, there are suggestions that Treeza Mayhem's cabinet may also have begun to notice that austerity is not working for anyone - thanks to Corbyn's impact in the elections.
But that narrative is purely political and lacks any foundation in economics whatsoever. The problem, rather, was in a global failure of regulation over the financial system. The solution is not even less regulation (Trump, the Tories and their City backers], but better regulation.
The financial system crashed fundamentally and what we see today is the product of immense public sector investment. You need to ask yourself how it came about that the UK government alone was able, at its peak, to put £955bn into its rescue for the banking system. [The US sums were vastly greater.] Was it really true to say that public finances were not robust and capable of working for the collective good? no. But the reality under the Tories has been the use of public resources to refinance the speculators and the spivs. The selling off of public (meaning our shared] assets for pivate greed has been a route to provide the City with new avenues for profitable speculation in the context of failing markets.
Private debt, not public debt, is the economic basis for the 2008 crash and the current lack of decent economic development. Continuing to fund speculative asset bubbles for the wealthy is not a route to recovery. While the rich keep getting richer, most people have not had a pay rise in forty years and low paid, insecure work with next to zero worker rights is not a model for improving the lot of most people.
[Blair left because he had run out of road in his dishonest and manipulative political strategy. He was not wanted any more and he knew it. He is still not wanted.]