“Our starting point for 2015/16 will be that we cannot reverse any cut in day to day, current spending unless it is fully funded from cuts elsewhere or extra revenue – not from more borrowing.
So when George Osborne stands up next week and announces his cuts in day to day spending, we won’t be able to promise now to reverse them because we can only do so when we can be absolutely crystal clear about where the money is coming from (Ed Miliband, June 22, 2013 (http://www.channel4.com/news/miliband-labour-will-not-borrow-more-to-reverse-cuts).”
It has become rather obvious that the tactic of shifting the Labour party to the left is futile, even in situations where government cuts are unpopular and they can pick up votes they refuse to reverse direction (e.g., bedroom tax and changes to child care benefit). Instead of saying we won’t be borrowing to reverse changes, the idea of taxes on wealth, the introduction of a general financial transactions tax, or introducing more bands on income tax to make it more progressive or closing tax loopholes to fund these changes is not discussed.
Adoption of neoliberalism as the basis for economic policy decisions is a political decision! It is not as though there is a dearth of other choices for economic policy that do not rely on lowering wages to maintain profitability and privatisation of public services. As such, choices in the electoral arena are essentially mainstream political parties upholding a neoliberal position. There is essentially no political party that represents the interests of the majority in the context of a grotesque attack on the social welfare state, divide and rule ideology, and privatisation of what remains of the state sector including parts of the NHS.
h/t to Elise Hendricks for the title of this piece!