Corbyn's policies are moderate, sensible and can win an election for Labour

Today at 3pm the chance to vote in the Labour leadership election closed. Ballot papers go out on Friday and then the result is announced on 12 September. According to YouGov and the bookies Jeremy Corbyn is the favourite to win, and if he does it will bring about a seismic shift to the left in British politics.

To be honest I've found the whole contest 'compulsive viewing'. From the very early stages when it became clear that Corbyn was beginning to gather support and the attacks on him started, I've followed every twist and turn. Except so far there haven't been any twists and turns - support for him started as a trickle, then became a torrent and now appears to be a flood which means the veteran left-winger may win the contest outright. 

The attacks on Corbyn, from within and without the Labour Party, have ranged from the vicious to the hilarious, and as support for Corbyn has grown so has the hysteria amongst the media and the establishment who sense they are in danger of losing control - so damned inconvenient democracy isn't it? We've had Tony Blair and his 'heart transplant' comment and Alastair Campbell with his plea for 'anyone but Corbyn' but the more Corbyn is attacked the stronger he appears to become - it is almost like science fiction.

The reason for Corbyn's strength and success isn't difficult to work out - although it hides the fact he has played a blinder - he remains calm, sticks to his beliefs, refuses to engage in slanging matches with opponents, sets out clear and popular policies, and because of this, in contrast to his lacklustre opponents, he comes across as completely authentic. And the 'opponents', tainted by their embrace of the neoliberalism of New Labour, have had nothing to say for themselves, preferring to attack him and parrot out tired and vacuous soundbites. No wonder they are losing and Corbyn is packing halls all over England and Wales.

Many of the policies Jeremy Corbyn has unveiled so far are remarkably similar to the anti-austerity pro-public services policies you will find in the Green Party manifesto. These include support for a publicly delivered NHS, nationalisation of the railways and quantitative easing (QE) for investment in jobs and housing. On the latter point there are differences but the fact that QE is being proposed at all by Corbyn is very significant. All of these are common sense responses to the economic crisis we are in which are popular with the public and which could win Labour the next election if they united behind them.

"Jeremy Corbyn No More War crop" by Garry Knight 

The real significance of the 'Corbyn effect' is that it scares the pants off the neoliberal establishment - they know that Corbyn could win, that his ideas are popular, and that they are a genuine backlash, and threat to the the cosy 'free' market, tax dodging, asset stripping, stitch-up that has been established in the UK over the past 30 years or so. Of course that anti-austerity backlash had to happen, and indeed has been happening for several years. The Green Party, which occupies the space vacated by Labour, and UKIP, which is largely a working class protest against austerity aimed at the wrong target (immigrants and the EU) together garnered 5 million or so votes at the last election. But how much more threatening if the Labour Party could turned against austerity?

At this point its worth quoting Owen Jones on Alastair Heath - the Deputy Editor of the Daily Telegraph:

"A Jeremy Corbyn victory would have a “disastrous effect”, he [Heath] warned, because it “would become acceptable again to call for nationalising vast swathes of industry, for massively hiking tax and for demonising business. The centre-ground would move inexorably towards a more statist position”."

Although there are significant differences between the Green Party and Labour, which mean that labour hasn't got the wherewithal to deal with climate change and move to the no growth economy that we all need, like my Green Party colleague Derek Wall, I would welcome a Corbyn victory. This is because, as Derek says, it would benefit the entire left not just Labour. Will Corbyn win? I'm not so sure. The knives will be out. He may well be defeated on second preferences. Yvette Cooper as the 'stop Corbyn' candidate may just edge him out, but whatever the result, the genie is out of the bottle, the Labour Party will have changed for the better, and anti-austerity will be firmly on the agenda in England and Wales.

There is a real alternative plan for the economy and RBS

Today I came across two news items which struck me as absurd. In the first David Cameron was making a speech in which he defended the government's economic 'policy of deficit reduction', which is better known as austerity. In his speech he came out with all the usual stuff, including the fact that reducing government spending was the only way to cut the deficit, and that there was no alternative. But clearly he is wrong. As others, including even Vince Cable have stated, there are very real alternatives. In a shrinking or stagnant economy its more difficult to reduce a deficit, and that, after three years of austerity is where we are now. 

The problem in our economy is lack of demand caused by high levels of unemployment, and falling living standards for the 99%. In those conditions people can't afford to buy, and tax revenues fall, especially when commodity prices are rising. If governments increase spending on much needed infrastructure projects such as social housing that stimulus creates jobs, raises tax revenues and revives the economy. You don't have to be a Keynesian to subscribe to this view. The key point though, is that it has never been cheaper to borrow money, so this is the time for governments to spend. Furthermore, there is really no need for our government to borrow, it can create money through quantitative easing (QE). The Bank of England (BoE) has created £375 billion of dosh through QE without any beneficial outcome because it has been wasted on buying bonds. In effect all this has done is benefit the very banks which caused the crisis in the first place by increasing their profits! What we really need is green QE, which means spending money created by the BoE on building environmentally friendly homes, investing in renewables and creating a million green jobs. This will revive our economy, help end the misery of unemployment, create the renewable energy we so desperately need, and move us towards  a green economy for the future.

The second bit of news was as priceless as Cameron's failed analysis of the 'need' for austerity; Mervyn King who is still governor of the BoE today put forward a cunning plan to sell off the infamous Royal Bank of Scotland (RBS). This consisted of splitting RBS into a 'good bank', with all the profitable bits, and a 'bad bank' containing loads of nasty debt. There is a huge problem with this plan because the private sector gets the good bits and we, i.e. muggins the taxpayer, gets to pick up the bill for all the nasty stuff, which we will no doubt be paying off for the next generation or so. But there is a much better plan. Split RBS and give the 'good' parts to the taxpayer to create a green national investment bank, and give the 'bad' bits back to the people who created the problem in the first place -  the bankers and their shareholders.

These two news items speak volumes about the people who run our country. They live in the past. They have no idea of what is good for the UK and the people who live here. They serve the interests of a narrow and privileged elite. These are the real benefit scroungers - to use their own terminology. They leach off the state to the tune of £billions whilst seeking to deny the poorest and most disadvantaged people in our country the tiny amounts of money needed to keep them going. They also haven't a clue about the restructuring our economy needs to undergo if we are going to create a green economy to deal with climate change. We deserve much better than his, and the only way to achieve real change is to campaign, agitate, and ultimately vote for a positive alternative. That alternative is the Green Party. Join us and help make that change happen. There is no time to lose.

Plan B endorses the Green Party's measures to revive our economy

On the 6th of October 2011, Green Party leader, Caroline Lucas called for a programme of green quantitative easing (QE) to revive our economy at a time when the Bank of England was announcing a plan to waste £75 billion on a QE programme of handing over money to banks. I blogged about this on the 10th October, and talked about how the Green Party had proposed green QE measures as part of a Green New Deal approach in our 2010 manifesto. The measures include a massive programme to create one million green jobs and a citizens pension to help lift pensioners out of poverty.

The Bank of England's QE plan is not the answer

In today's Observer there is a call by 'leading' economists for the government to adopt a Plan B approach which would include many of the measures we have been talking about for the past few years. Bizarrely enough, in the article, Tory MP Jesse Norman is given the credit for getting the Plan B ball rolling by stimulating Neal Lawson of Compass to act. According to the Observer:

For all the constant griping about the government's policies, and a despondency over the perceived flaws of Osborne's austerity prescription, Neal Lawson, chair of the centre-left pressure group Compass, had to admit to himself that they were nowhere.

"When Jesse said that I just thought, yep, we need to stop just talking about this stuff and get down to sorting out an alternative plan," Lawson said.

Of course if Lawson had bothered to pick up our manifesto he wouldn't have needed Norman or his group of economists to formulate his Plan B. But the good news is that he and his centre-left colleagues are now beginning to catch up with Green Party policy.

Such are the perils of being a minority party. It would have been nice if a few journalists could have been bothered to listen to what we were saying at the last election, and also to Caroline's recent views on green QE. At least now it is beginning to look like the non-green left is moving in the right direction. If we can work together with others on the left, the anti-cuts groups, such as UKuncut,  and the trade unions we may be able to put enough pressure on this government to make it change course. The November 30th pensions action is the next big event, lets help to make that a day of action to stop the government's austerity programme and bring about positive change.

Quantitative easing, and how to help to avoid the big crash

Just after the Tory party conference, which ended last week, we were told that the Bank of England had introduced a new round of quantitative easing (QE) in the UK  to the tune of £75 billion. This is throwing bad la la money after bad.The bad is the £200 billion already wasted on QE to little effect on the UK economy so far, except perhaps as an increase in inflation. The la la, is that it is made up money which comes from nowhere, so it might as well come to you and me, and I'm not joking, because if it did, that really would lift off our economy. But we all know that is not going to happen. The iron law of capitalism is - "To those that have shall be given".

What we have with this economic crisis is the perfect storm, which was described by Governor of the Bank of England, Mervyn King, in the link above, as:

"There is not enough money. That may seem unfamiliar to people." [he told Sky News.] "But that's because this is the most serious financial crisis at least since the 1930s, if not ever."

All of which makes our current situation potentially worse than the Great  Depression. This is because; we still have a huge amount of debt in the system; we have nation states (like Greece) bust; we have bust banks; and all the economic levers, including record low interest rates, and QE, have been pulled, both here and in the USA. So there's nowhere left to go - not as far that is, as neoliberal economics is concerned - see Larry Elliot's article in the Guardian.

On top of all this, now we hear that yet another bailout of European banks is planned by Sarkozy and Merkel in the EU. This will cost at least £200 billion, but the EFSF could go up to €2 trillion. But  hang on..... where is all this money coming from? Why, from you dear taxpayer, you and your children, and your children's children will have to fork out at least that amount, and possibly more, to bail out commercial banks. And yet, this really is the plan - a kind of madness.

The Guardian have summarised the current situation in their Eurozone graphic - see below:

The Eurozone crisis - source: The Guardian

So what is the answer? Not more QE, that is for sure, and no more bank bailouts. The state has done its bit, now it is time for the market to bear all of the costs of the debt in the system. That sure will hurt bad, it wont be easy for anyone, but it is the only solution. The major banks must be nationalised and the rest written off. Then the nationalised banks need to be turned into national investment banks (with some mutualised). We then need a sustained burst of Green QE, starting with the Green New Deal.The Green Party plan is to start by investing £44 billion in creating one million green jobs, a far better investment than QE. There is much more to be done, including building renewable energy sources, and affordable housing, and a citizen's pension, but this is only  the start. If you want to know more, take a look at our manifesto here.