Yes, I know. The title sounds like one of those doleful Trot pamphlets from the '70s.
However, I believe that we are seeing a progressive alternative starting to be unveiled in the newspapers this week.
First, I welcome the call by Labour MPs for public money to be spent boosting the incomes of the poorest. That would mean real money in the pockets of real people. It would be spent not saved, and in most cases, spent locally, boosting local economies, just like the tens of millions that have been awarded in miners' compensation in the Rhondda in recent years. As the MPs argue:
In an open letter published by the Observer today, the MPs argue that
giving tax cuts to the middle classes may simply see money tucked away
in savings accounts, but giving cash to those who really need it
ensures they will spend it.
Second, Will Hutton's hopes that we will see a new agenda for financial regulation internationally are very significant:
My understanding is that, extraordinarily, the G20 will decide to
regulate hedge funds, register credit-rating agencies and their
business practices, insist that derivative trading is undertaken in
regulated exchanges, set a framework for bank pay and bonuses, require
transparency and disclosure of information from tax havens and organise
international "colleges of regulators".
And President Lula da Silva has rightly raised the importance of ensuring that emerging economies and less developed countries do not suffer the consequences of a crisis for which they are not responsible, a call also outlined by billionaire George Soros, and Gordon Brown has responded to this in a positive way, suggesting a $100 billion fund to underwrite world trade