Toward a progressive economic agenda

[Celerity]

To win power, progressive leaders must articulate a coherent economic policy, focusing not only on redistribution but also value creation.

https://socialeurope.eu/toward-a-progressive-economic-agenda

With much of the world facing unavoidable health, energy, cost-of-living and climate challenges, progressive political leaders have an opportunity to articulate a meaningful alternative to traditional economic policy-making. That requires conveying a bold and coherent vision of how to achieve inclusive and sustainable growth.

At the British Labour Party’s annual conference last month, its leader, Keir Starmer, spelt out his own ambitions to turn Britain into a ‘green growth superpower’ capable of creating new jobs, industries and technologies. Having spoken with the Labour Party about putting green concerns at the heart of the United Kingdom’s industrial transformation, I am delighted to see Starmer channelling the ambition that is needed. Progressive leaders around the world should take note.

Labour’s vision stands in stark contrast to the hackneyed, 1980s-style package of disastrous ‘trickle-down’ tax cuts, policies to reduce worker power (even more!) and enterprise zones which Liz Truss’ government has announced. While the Conservative gamble with fiscal stability has forced the government to execute a major U-turn on the proposed tax cuts for the highest income earners, little is being said about the public investments—in areas such as infrastructure, innovation and education—needed to drive economic growth. On the contrary, the tax cuts will increase public debt, causing the government to cut the much-needed investment.

Unfortunately, the absence of bold, clear progressive policies has allowed the far right to gain traction across Europe, not least in Italy, which is poised to be governed by Giorgia Meloni’s post-fascist alliance. Whenever low-income groups suffer—as they do now and will continue to do this winter—xenophobic parties will exploit their hardship, pinning the blame on others (as did the former United States president, Donald Trump) to distract from their own weak, incoherent or non-existent policy proposals.

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