Public ownership the foundation of so-called Corbynomics

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Public ownership the foundation of so-called Corbynomics

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Jeremy Corbyn a one-time lone voice in the political wilderness is now topping the opinion polls in the Labour leadership race. But is his a voice in the economic wilderness?

He wants to bring back Clause 4 – public ownership of industry – to the Labour manifesto a sacred cow that was sacrificed by former Labour Prime Minister Tony Blair.

Under Corbynomics it’s reckoned the bill for the UK’s entire gas and electricity industry could top the 185 billion pound sterling mark. Bang would go price competition and at a huge cost to the tax payer. “Disastrous”, said research group the Institute of Economic Affairs.

A promise to spend more on the National Health Service will depend on recouping revenue lost to tax avoidance. One hundred and twenty billion pounds can be recouped says his campaign leaflet. An overestimate of 100 billion said one expert.

The 66-year-old has suggested creating a National Investment Bank with the power to issue bonds to be acquired by the Bank of England. That say critics could stoke inflation and damage the credibility of the Bank of England.

So can Corbynomics achieve credibility?