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Corbyn madness

corbyn-gettyThis blog habitually steers clear of political opinion but does remain very aware that you cannot divest politics from economics and business finance. At the same time it can be argued that many political decisions do not greatly affect our world simply because there is a general consensus that liberal democracy and free markets work.

However we are now faced with the prospect of the major party of opposition in the uk being led by a someone very outside this mainstream of opinion

Many appear to believe that this is a “good thing”. Others rightly conclude that it doesnt really matter because he is “unelectable”. I agree that he is but am also a believer that a creditable opposition is valuable for the whole nation. Complacent governments are frequently poor governments

A Corbyn led labour party is a not credible opposition

Leaving aside his very sinister allegiances and the actual fact that he could even be viewed as a security risk, the issue that concerns us is his economic views. It probably goes without saying that a Corbyn administration would be very alienating to business and would drive down investment simply by its very presence but underneath the radar are policies which are truly economically illiterate

He much publicised “peoples qe” has been roundly criticised as being a trigger for inflation and even a total loss of economic control, but lets look at two other suggestions that have not been as widely publicised as perhaps they should have been.

1. Nationalisation. It has been suggested by his team that this could be “without compensation”. Effectively this is stealing back the assets from the shareholders. in the first instance this would surely be challenged legally but the wider question would be , what next? Aside from pension and investment funds losing value as well as individual shareholders seeing their savings wiped out, there would be an enormous collapse in market confidence. How could there not be? Investment would retreat to safer markets and any number of enterprises will simply ensure that they cannot be seized by the state by simply removing themselves from the Uk.

2. Right for tenants to buy property. This allied to suggested rent controls is completely the wrong approach to our current under supply of housing. Rent controls drive down property development for very obvious reasons but who will be beholden to an administration that would insist that your property is not yours to sell as you wish? Who would invest and develop under those circumstances?

Corbyn’s administration would be based on little more than simply targeting who is disliked, whether in business or international affairs, and then simply framing a policy to punish. There is little thought for the wider consequences of such actions which will clearly be counterproductive.

That is irresponsible government and should be rejected by labour members before the electorate deliver their humiliating verdict

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