HOW POLITICS CHANGE! - IN MY VIEW THERE HAS BEEN NO CHANGE SINCE THE DAYS OF SUNNY JIM CALLAGHAN

For Those Who Think That There Has Been A Change, Not Since James Callaghan Adopted Neo-liberalism in

1978 Whilst In Government. 

For those of you who think that there has been a change in our politics in recent times. Well in my view it has remained the same since the days of Sunny James Callaghan. The first manifestations of the adoption of Neo-liberalism in Government was in 1976 when James Callaghan informed the Labour Party that the game was up.

What is the cause of high unemployment? Quite simply and unequivocally if it is caused by paying ourselves more than the value of what we produce. There are no scapegoats. That is as true in a mixed economy under a Labour Government as it is under capitalism or communism. It is a fact of life which no Government, be it left or right, can alter. We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting Government spending. But I tell you in all candour that, that option no longer exists, and in sofar as it did ever exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step. Higher inflation followed by higher unemployment.We have just escaped from the highest rate of inflation this country has known; we have not yet escaped from the consequence's: high unemployment. That is the history of the last twenty years.

Callaghan's regretful message soon became Thatcher's triumphant catchphrase, and was later adopted as the mantra of American evangelists for untrammelled global capitalism: there is no alternative. Callaghan's statement also demonstrates that he did not understand Keynes. Spending was not the way out of recession. Investment was the way out.

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Keith C