The British establishment has mercilessly smeared Jeremy Corbyn since he became Labour leader in 2015. If other vilifying failed though, it always had a fallback line of attack. ‘Labour will wreck the economy,’ it screamed. ‘Red menance Corbyn will tank Britain,’ it wailed.
Clearly, establishment politicians and their dutiful right-wing media thought the economy was something they could depend on to ‘get’ Corbyn. But no longer, it seems. Because with the threat of a no-deal Brexit looming, markets now see Labour as a better bet for Britain’s finances.
Unexpected turn of events
Analysts at both Citibank and Deutsche Bank have piped up about the revised ‘threat level’ of a Corbyn-led government to the economy. Clearly, it’s Boris Johnson’s drive towards a no-deal Brexit, and the economic dangers that poses, which is bringing about their change of mind. Deutsche’s Oliver Harvey said:
First, any market-unfriendly policies instigated during a Labour government are temporary (until the government is voted out of office), and must be set against the permanent shock caused by a no deal Brexit.
Second, we see the magnitude of economic damage caused by a no deal Brexit as much higher than policies proposed in the last Labour manifesto.
He added that financiers’ fears about Corbyn “may be overstated”.
Meanwhile, Citibank’s Christian Schulz said that, while “risks to the longer-term outlook” from a Labour government remain unchanged from a year ago:
a fiscally profligate no-deal Conservative government is no longer as enticing.
A new reality
These analysts remain concerned about the ‘long-term risk’ to financiers’ interests from a Corbyn-led government. And they should be. Because Labour’s 2017 manifesto promised a fundamental shift in the country’s economic policy. It offered a vision of Britain where essential services are run by and for the people, with any profit from those services going back into the public finances. It also promised a country where companies will pay their fair share of tax, which again will bolster the public purse to the benefit of citizens. Furthermore, Labour has now pledged to ensure workers have a real stake, and voice, in the large companies they work for through the creation of an ‘inclusive ownership fund’.
The Financial Times is right:
“The Labour leadership is determined to shift power away from bosses and landlords and to workers and tenants.” pic.twitter.com/781CAuOCqw
— Jeremy Corbyn (@jeremycorbyn) September 2, 2019
Of course, these are ‘risky’ propositions to financiers – who have benefited greatly from a financial system that sees a handful of people raking in billions while huge swathes of the population struggle to scrape by. But now, despite those ‘risks’, financiers apparently see the Tories as more dangerous to their bottom line than Labour.
What an unexpected, and amusing, turn of events.
Featured image via Owen Jones/YouTube
