Blog 2023 Malcolm Blair-Robinson

An idea to stimulate economic growth without further government borrowing. Written in plain English and very easy to follow, this is the only really fresh approach out there to the intractable problems of the UK economy, and it is just beginning to be noticed in important places. Buy! Download only .99p Paperback £2.99

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Jeremy Corbyn is right to throw into the political debate the role of the state in the economy; in particular public utilities which are monopolies. The Tories fundamentally believe the state is a bad idea in anything beyond law enforcement and the armed forces. Everything has been privatised that conceivably could be. While an argument can be made for enterprises like British Airways and BP to be privatised, because they are businesses in competition with many others in their field, the same cannot be said for gas, electricity, water, railways, roads and  other monopoly public services.

To control privately owned monopolies, regulators had to be appointed. The result is a vast portfolio of regulations and regulators, hugely increasing  costs to consumers, to which have to be added returns for shareholders and the costs of re-investment to sustain the infrastructure, much of which is out of date. To all this inefficiency can be added the contracted out basic services such as prisons and refuse collection. These so called business are paid their income out of local and national taxation and are not really in the private sector at all,  because they have no revenue other than from taxpayers.

The combination of private monopolies, the quango state and taxation funded enterprise has created one of the most costly an inefficient economic models ever. This is why the government is constantly having to borrow. It must surely be right to have a good look at all this and become much more honest about the function of the state and its potential to reduce costs and do things a better way, while leaving genuine competitive business unhindered. However, turning the clock back to a copy and paste of Clause Four will fall short of the need. A new modern interpretation is called for. Corbyn could deliver that.