The Labour Party – The Magic Money Tree Party?

After the speeches from The Leader of The Opposition and the Shadow Chancellor during the Labour Conference, questions have been raised by the Tories and the general public about where the money is going to come from. One man said that Corbyn thinks there is ‘a magic money tree’ and went on to say that we can’t afford the policies that Labour are proposing. Well, where is the money going to come from, and are the Labour party just going to pile more debt onto our country through their plans?

Firstly, there is a magic money tree! It has been found, but not by the Labour party, By the Tories. This magic money tree has a more common term of the Bank of England. The conservatives are using this tree to fund everything they do. 375 billion pounds were spent on quantitative easing of the banks in 2010. Where did the Tories get this money? Their magic money tree. The use of this magic money tree has resulted in furthering the deficit, breaking a promise made by George Osborne to the British public. At the same time of the Tories frequent printing of money to chuck into banks, they told us, and still tell us that the country ‘has no money’, this is how they justify their despicable, vindictive tax credit cuts to the most vulnerable families in our society. This is wrong. Quantitative easing of the banks is wrong. The governments excuse for austerity is wrong.

Now here is where Jeremy Corbyn differs from the Tories. We print money, we use this magic money tree already. The question of where will the money come from to fund Labour’s ideas is irrelevant. We wasted £375bn on banks in 2010, think of what just a quarter of that could do to help our society. Corbyn proposes quantitative easing, but to use this money to invest in infrastructure within our country. Not only will this create better roads, better rails and better services and housing in our country, it will be money that we can see. No more of the trickle down economics of the Tories. Why not put the money where it is most needed. These suggestions would help alleviate the housing crisis in Britain, put people in jobs and essentially make money for Britain. Only investment into our services will allow our people to prosper from this money. More people will be in jobs, meaning less money will have to be taken out to spend on social welfare, added on, the fact that these people in jobs will be bringing the UK money through taxes. This is why the question of where will the money come from is not needed in this debate. Wherever it does come from, the money will be worth it in the long run and through this the Labour party would be able to reduce the deficit through these investments. Just as FDR did through the Great Depression in the USA, and also just as the Labour party did after the war when we had a debt that eclipsed the one that we have today, investment is key to reinvigorate the economy.

The Labour party are not deficit deniers, they want to get rid of it, but not at the expense of the most vulnerable and deprived people in our society, not even at the expense of businesses. These plans would help businesses as they would be commissioned, by the government to create these new projects. Labour is showing to the electorate that it wants a fairer solution to the deficit. It will not continue the ideologically driven cuts that the Tories have so poisonously implemented upon the British public. It will never try and incite class war upon our society and it will strive to make politics a much kinder process towards the oppressed.

What strikes me with these questions of where the money will come from is that the British public seem to be more interested in financial administration than they do on the general well-being and equality in our society. I put a question to the electorate; would you rather live in a country that makes sure we are always in a budget surplus at the expense of the most vulnerable in our society? Or would you prefer for our country to have jobs, to be happy and to have equal opportunities, even if it means that we have to go into a defect in the short term? I would easily choose the latter, sometimes the goodness of society, the equality within it, and the prosperity that a good social system brings outweighs the ‘need’ to ‘get the deficit down’.

George Osborne’s austerity policy is failing. it will continue to fail. Something needs to change, a debate needs to be had, and an election needs to be won. Labour is the only viable option to oppose the Conservative failure in government. We have five years in which they will do anything to cripple the working and middle class, they have started already with the Trade Union Bill and the Tax credit cuts. Opposition is what the UK needs. Corbyn’s Labour is this opposition.

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2 thoughts on “The Labour Party – The Magic Money Tree Party?

  1. Yes, Labour do want to get rid of the deficit, as you say. But they shouldn’t. There really is no need to, and if the economy were to be run at a surplus, there is a real danger of it causing a recession. The ‘deficit’ is basically just the amount of money in circulation that isn’t taken back by the Government. The deficit therefore means the public are richer.

    By definition, when we have a surplus, that means people are using up their own savings to cover the lost services, or they are borrowing money that will have to be paid back eventually, in order to cover the lost services, or they are just doing without, which means private sector product is not being consumed. This means in turn lost revenue for the private sector, which can lead to job-loss.

    Also, please keep in mind that there is no danger of the country going bankrupt due to the National Debt. The Debt is processed through the Bank Of England, which also controls the supply of sterling. Therefore, when any payment from the debt is due, the BoE will simply issue the money. It can do that indefinitely, or it can ‘roll over’ debts by re-selling gilts to other lenders. It has worked that way for centuries and can continue to do so for centuries more.

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