Old McDonnell has a plan. He eyes IOUs

WITH the Labour party 17 percentage points behind in the opinion polls, it may not be worth analysing the tax and economic aspects of its manifesto. The belief that the party will lose is so widespread that you can get odds as high as 20/1 on a victory for the party; market indifference is such that its plans to nationalise the water industry have caused shares in the biggest provider, United Utilities, to fall just 1.6%. Still, the manifesto is such a mishmash of ideas that it is worth a look at the ideas of Jeremy Corbyn and John McDonnell (pictured).

One eye-catching proposal is for a £250 billion “National Transformation Fund”, spread over 10 years, to invest in

infrastructure – transport, energy systems, communications – scientific research and housing fit for the 20th century

There is an argument for borrowing to fund infrastructure. This depends on a couple of…Continue reading

This post was originally published in the Economist.

Old McDonnell has a plan. He eyes IOUs

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