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The Guardian - UK
The Guardian - UK
Politics

Labour’s lost if it doesn’t defend public spending

Your editorial (The Guardian view on Sir Keir Starmer: caught between scaring and inspiring voters, 5 January) is right to worry about Labour’s rejection of big-spending government. Labour is nothing if it does not defend adequate public spending, social justice and a fair reward for work. Its vision is limited because it shares the neoliberal assumption that growth comes only from the market. This reflects the massive growth of the industrial era, when millions were employed in the new factories, and their supporting services, such as private finance.

However, in the modern era, industrial production has been outsourced by the older market economies and replaced by the financial sector and hi-tech. But high levels of employment in these areas have not followed. In economies such as Britain’s, the main growth of mass employment has been in public and personal services, particularly health. It would seem logical, therefore, that public employment should be a focus of economic growth.

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