On Tuesday, it was “Pressure rises on Reeves”, last Friday it was “a lift” for the chancellor (29 August). Before that, it was a “challenge” for Rachel Reeves (12 August)(22 July), a “gloomy autumn” (22 July)“UK economy shrinks unexpectedly in blow to Rachel Reeves” (14 March) and a “generational shift” in investment (10 June). Reeves must feel like Mary Earps, keeping goal with balls flying at her from multiple directions! But the more serious take on this is the tendency for the media, including the Guardian, to push the narrative of a fragile economy whose health is subject to very short-term, daily events.
This is a narrative derived from the bond markets, which strive to reduce long-term stability to short-term volatility in order to multiply transactional opportunities. The time has long passed to exert the kinds of control on “casino capitalism” that were scrapped in the 1970s, and to reassert the priority of long-term thinking. There is no sign of Reeves doing that – in fact, almost the opposite. Some bond marketeers seem confident that the chancellor needs to keep the bond markets onside. Does she really? Perhaps we should start by challenging the narrative.
Prof Saville Kushner
Liverpool
