I don’t like Labour’s chances of winning power in the UK – and even if they do, they have a history of changing their tune once they take the reins of power – but this guy’s analysis of the problem is accurate, as far as it goes:
“[UK Labour Party leader] Jeremy Corbyn has launched a fresh attack on the City of London by promising to make financiers “the servants of industry” if he becomes prime minister.
[He] claimed in a speech to manufacturing leaders in London that the finance sector’s “destructive” dominance over “the real economy” and “undemocratic” control over politics needed to be tackled so that the economy can be rebalanced.
Mr Corbyn told the EEF conference: “We will take decisive action to make finance the servant of industry not the masters of us all.
“For a generation, instead of finance serving industry, politicians have served finance. We’ve seen where that ends.”
[In fact, the problem goes back far beyond the current generation!]
In a speech that will send shivers through the banking industry, Mr Corbyn vowed that the next Labour government would be “the first in 40 years to stand up for the real economy” and combat the “financial wizardry” running through the City.
Mr Corbyn said: “When private debt is twice the size of the real economy, when traders no longer understand the products they’re trading, and banks are funding their own speculation rather than productive investment, something has gone grossly and badly wrong.”
“We need a fundamental rethink of whom finance should serve and how it should be regulated,” he said. “There can be no rebalancing of our distorted, sluggish and unequal economy without taking on the unfettered power of finance.”
[Actually, we need “a fundamental rethink” of how new money enters the economy – and I’m not convinced that Labour party leaders anywhere know how to implement that!]
Response from the Money marketeers – totally predictable, of course:
Brexiteer Tory MP and former hedge fund manager Jacob Rees-Mogg hit back at the “ill-informed” comments that he said would hit industry.
Nicky Morgan, the Remain-backing chair of the Treasury select committee, told The Daily Telegraph that Mr Corbyn’s comments were “barmy” and displayed a lack of understanding.
The business community spoke out in defence of British bankers on Tuesday. The Institute of Directors said that while it was true that the hangover of the financial crisis still loomed large, the City contributed huge amounts to the UK’s growth through jobs and taxes.
Meanwhile the Confederation of British Industry (CBI) added that the [finance] sector was the “lifeblood of Britain’s economy, enabling all other sectors to deliver jobs, develop, innovate and grow”.
Stephen Jones, the chief executive of industry trade association UK Finance, said the sector has “undertaken significant reform in the last 10 years to ensure that the taxpayer should never need to bail out a bank again”.
Source: The Telegraph