Despite what the UK right will tell you, appeasing bond markets has actually led to instability | Andy Beckett
Key points
- Should politics always be dominated by economics?
- Should questions about how governments and voters pay for things – whether by earnings, taxes or borrowing – be settled before we consider the wider consequences?
- In an anxious capitalist democracy such as Britain, with a modern history of patchy economic success and intermittent but recurring crises over public debt, the answer may seem obvious: governments and voters always need to behave in ways that fit with the market forces that shape our economy.
- This is the assumption behind most of the debate about Labour and the bond markets.
- Pundits and politicians on the centre left as well as the right, and many mainstream economists and bond traders, all agree that whoever emerges as prime minister from the current undeclared leadership contest will have to design their spending policies according to what “the markets” – as they are called with reverent vagueness –...
Quick Summary
Should politics always be dominated by economics? Should questions about how governments and voters pay for things – whether by earnings, taxes or borrowing
Why It Matters
This development is important because it may impact public opinion, policy decisions, and future developments related to Despite what the UK right will tell you, appeasing bond mark.
Key Takeaways
- Should politics always be dominated by economics?
- Should questions about how governments and voters pay for things – whether by earnings, taxes or borrowing – be settled before we consider the wider consequences?
- In an anxious capitalist democracy such as Britain, with a modern history of patchy economic success and intermittent but recurring crises over public debt, the answer may seem obvious: governments and voters always need to behave in ways that fit with the market forces that shape our economy.
- This is the assumption behind most of the debate about Labour and the bond markets.
- Pundits and politicians on the centre left as well as the right, and many mainstream economists and bond traders, all agree that whoever emerges as prime minister from the current undeclared leadership contest will have to design their spending policies according to what “the markets” – as they are called with reverent vagueness – find acceptable.
📌 Source: The Guardian
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