Social democrats need not wait for growth: a foundational economics can improve lives now
Source: https://www.theguardian.com/profile/editorial. "The Guardian view on Labour’s growth obsession: a different economics is possible | Editorial | The Guardian." November 3, 2026. www.theguardian.com
The Gist
The Guardian argues that Labour is wrong to say its egalitarian goals depend on economic growth, because big growth may not return and wouldn't fix poverty in left-behind towns anyway. Instead, the government can lower costs and improve basics like buses, utilities and care through redistribution and local investment. It says this can start now if Westminster backs it.
Conclusion
Labour's linking of its social-democratic agenda to GDP growth is flawed and politically unhelpful; with proper backing from Westminster, social democrats can improve lives now through redistribution and investment in the foundational economy rather than waiting for growth.
Premises
- Labour leaders (Starmer, Burnham, Healey) have tied the scale of their progressive offer to generating significantly higher GDP growth, asserting that without growth there is no social democracy.
- In a transformed geopolitical environment, restoring former levels of growth is likely to prove a chimera.
- Even if growth rates improved, growth would not solve entrenched affordability problems in places like Oldham and Wigan, which are unlikely to become hubs for advanced manufacturing or financial services (as Manchester's booming centre contrasts with them).
- A more redistributive fiscal approach can directly bring down bills for the less well-off.
- Shifting resources into essential local building blocks (transport, utilities, care networks, social and physical infrastructure) can improve everyday lives by restoring collective control over public goods.
- Examples such as Greater Manchester's bus franchising with fare caps and the Middleton development corporation, shaped by residents and local businesses, show that this foundational approach is workable.
Assumptions
- Growth is unlikely to return to former levels, and the expert claims of Williams and Johal are reliable.
- Aggregate growth does not reliably 'trickle down' to low-income places that lack high-value industries.
- Redistribution and foundational-economy investment can be funded and delivered without first achieving higher growth.
- Improving access to necessities and public goods is a legitimate and sufficient measure of social democratic success.
- Local examples such as Greater Manchester buses and Middleton can be scaled nationally.
- Westminster is willing and able to provide the necessary backing and fiscal room.