The economic consequences of a Corbyn & McDonnell led gov't?
Discussion
Given the current political climate it now appears there is a very real possibility that Labour under Corbyn could get the most seats (or even a majority) at the next general election. Sure this may not be the most likely outcome (looking at the opinion polls, betting markets etc) however it's certainly not the huge long-shot that it was 18-24 months ago.
What do folks here think would be the economic consequences of 5 years of a Corbyn led government given that their economic policies - such as massively increased borrowing, increased taxation across the board, no tuition fees, the re-nationalisation of water companies, the railways, royal mail etc, an increased minimum wage, 10s of billions more for the NHS, the 'immediately purchase 8,000 properties across the country' to house the homeless etc etc - are so wacky?
3-4 years from now we could find ourselves out of the EU with a s
t deal and have Corbyn as PM, McDonnell as Chancellor and Diane Abbott as Home Secretary. Interesting times we're living in.
What do folks here think would be the economic consequences of 5 years of a Corbyn led government given that their economic policies - such as massively increased borrowing, increased taxation across the board, no tuition fees, the re-nationalisation of water companies, the railways, royal mail etc, an increased minimum wage, 10s of billions more for the NHS, the 'immediately purchase 8,000 properties across the country' to house the homeless etc etc - are so wacky?
3-4 years from now we could find ourselves out of the EU with a s
t deal and have Corbyn as PM, McDonnell as Chancellor and Diane Abbott as Home Secretary. Interesting times we're living in.
Wobbegong said:
The so-called BBC might finallysupport the government at least. It won’t be all bad 
I doubt that , they favour the wishy washy Champagne socialist labour not the red in tooth and claw militant momentum types that would tax the hell out of the smug comfortably off middle class lefty types that infest the BBC ...
Corbyn is on record on stating Venezuala is a model to follow.
I wonder how that turned out?
The UK would be bankrupt in under 12 months under Corbyn and McDonnell leadership.
Just look at McDonnell interviews on nationalisation.
q/ "How are you going fund £260 billion buying back those companies?"
a/ "It won't cost a penny - we will just swap their shares for Govt bonds"
McDonnell is totally clueless and incompetent.
He should make way for Diane Abbott who is slightly better in both regards.
I wonder how that turned out?
The UK would be bankrupt in under 12 months under Corbyn and McDonnell leadership.
Just look at McDonnell interviews on nationalisation.
q/ "How are you going fund £260 billion buying back those companies?"
a/ "It won't cost a penny - we will just swap their shares for Govt bonds"
McDonnell is totally clueless and incompetent.
He should make way for Diane Abbott who is slightly better in both regards.
loafer123 said:
Significant increase in government borrowing and increased taxes leads to capital flight. Interest rates have to go up to attract investment and stabilise the pound. Asset prices fall, reducing the value of pensions and houses leading to negative equity.
Need I go on?
Have we not been told we are losing all the good stuff and getting all the crap stuff when we leave the E.U?Need I go on?
Edited by gooner1 on Tuesday 30th January 23:50
There were a number of economically damaging policies in the last Labour manifesto, the most obvious of which was a unilateral Tobin Tax in a country reliant on financial services.
However the biggest worry is not so much what is in the manifesto, but the true beliefs of the leadership. If they achieve power with a healthy majority then they will have free reign.
However the biggest worry is not so much what is in the manifesto, but the true beliefs of the leadership. If they achieve power with a healthy majority then they will have free reign.
dazwalsh said:
In a nutshell he will undo all the years of balancing the books and lowering the defecit, and within a year we will all be back in 2008 levels of eye watering borrowing and facing a huge collapse of the economy, jobs and housing market.
You forget.....bonds aren't borrowing:-)dazwalsh said:
In a nutshell he will undo all the years of balancing the books and lowering the defecit, and within a year we will all be back in 2008 levels of eye watering borrowing and facing a huge collapse of the economy, jobs and housing market.
Have the books been balanced yet?According to the doom and gloom merchants here, the sky will fall immediately. Businesses who had no problem with Brexit will flee the country and there will be riots on the streets.
Meanwhile in reality, not a great deal will change for the average person. Some people will post angry things on the internet. It'll allow the Tories to shift some of the blame when Brexit turns out badly.
Meanwhile in reality, not a great deal will change for the average person. Some people will post angry things on the internet. It'll allow the Tories to shift some of the blame when Brexit turns out badly.
Not-The-Messiah said:
Didn't we have "we didn't vote to make ourselves worse off" by many from Labour with regards to Brexit. Suggesting we could revers or change the vote, if economic experts say it's bad for us.
Surely if they think that argument can be used there we should be able to use it with them.
Another general election? Sorry, will of the people - it's been decided for good.Surely if they think that argument can be used there we should be able to use it with them.
gruffalo said:
dazwalsh said:
In a nutshell he will undo all the years of balancing the books and lowering the defecit, and within a year we will all be back in 2008 levels of eye watering borrowing and facing a huge collapse of the economy, jobs and housing market.
You forget.....bonds aren't borrowing:-)Can't believe no one thought of this sooner.
mx5nut said:
According to the doom and gloom merchants here, the sky will fall immediately. Businesses who had no problem with Brexit will flee the country and there will be riots on the streets.
Meanwhile in reality, not a great deal will change for the average person. Some people will post angry things on the internet. It'll allow the Tories to shift some of the blame when Brexit turns out badly.
Labour are going to introduce a Land Value Tax, expected to be around 3% of land value (assuming about 50% of a properties value is Land). Is this going to change things for the average person?Meanwhile in reality, not a great deal will change for the average person. Some people will post angry things on the internet. It'll allow the Tories to shift some of the blame when Brexit turns out badly.
Now add to that rent caps and long tenancies so that LVT cannot be added to private rents. That will massively contract the private rental sector. If the PRS suddenly contracted would that have an affect on the average person?
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