David Miliband's demolition of Osbornomics

Former foreign secretary deconstructs Osborne's economic myths.

David Miliband made a brilliant speech in the House of Commons yesterday in which he deconstructed four of George Osborne's key economic arguments, namely

1. That the Canadian example shows that a "contractionary expansion" is possible.

2. That private sector growth was previously crowded out by the public sector.

3. That the UK's record low bond yields are due to Osborne's deficit reduction programme.

4. That without austerity we would be in the same position as Greece.

As John Rentoul says, it's worth reading the speech in full, but to give you a taste, here's Miliband on why Osborne isn't responsible for falling bond yields.

The Chancellor says that international markets have voted with their feet in buying UK gilts and driving down yields over the last 18 months. However, the biggest buyer of gilts in recent years has been not the international markets but the Bank of England. I will not dwell on the fact that the Chancellor denounced quantitative easing when he was shadow Chancellor, but he surely knows that for this financial year the Bank of England will have bought no less than 42 per cent of gilt issuance. The Bank now owns more than 30 per cent of the total gilt stock, compared with zero in 2008, while the proportion of international market ownership has barely changed. Interest rates are low in this country because of Bank purchasing policy, not because of government fiscal policy.

George Eaton is political editor of the New Statesman.

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Tony Blair won't endorse the Labour leader - Jeremy Corbyn's fans are celebrating

The thrice-elected Prime Minister is no fan of the new Labour leader. 

Labour heavyweights usually support each other - at least in public. But the former Prime Minister Tony Blair couldn't bring himself to do so when asked on Sky News.

He dodged the question of whether the current Labour leader was the best person to lead the country, instead urging voters not to give Theresa May a "blank cheque". 

If this seems shocking, it's worth remembering that Corbyn refused to say whether he would pick "Trotskyism or Blairism" during the Labour leadership campaign. Corbyn was after all behind the Stop the War Coalition, which opposed Blair's decision to join the invasion of Iraq. 

For some Corbyn supporters, it seems that there couldn't be a greater boon than the thrice-elected PM witholding his endorsement in a critical general election. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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