Good post, and a few months ago I would have agreed. Action to lift wages and public spending on infrastructure is classic Keynesian economics and we can look at Bidenomics to see it still has purchase. The U.S is in a different position to us though: its citizens still largely consume U.S products and, crucially, as the world's reserve currency (because oil is traded in dollars) it can keep on 'printing money'.
What's changed for me is my understanding of just how weak our structural position is. Pikety demonstrated that capital took an even greater share of national income (in the form of economic rent of one form or another) and it is this tendency that continually stifles demand in the UK, the 'rentier' economy par excellence. Businesses don't want to grow, because ordinary people haven't got money to spend because of increased mortgages/rents, energy costs etc. We have transformed into
an economy dependent on asset bubbles to produce ersatz 'growth', but all asset bubbles do is deliver an ever greater share of wealth to those who already have it as they buy up all the assets, taking them out of the reach of workers without wealth. Moreover - and this is another crucial fact that has recently become apparent to me - the businesses that are growing in the UK are invariably owned by America!
In addition to the vast swathes of our infrastructure owned - and rented back to us - by overseas asset funds (such as Blackstone and the like), over the last 20 years
American companies have consistently predated upon the UK market, taking over both established and nascent UK companies that promised high returns, invariably offshoring profits.
As a Labour member, I have always been against left-splitters, but I'm starting to lose faith that the party has either the will or the understanding to begin to reverse these fundamental structural changes to the UK economy. We have an economy based around asset wealth, rent seeking, rapacious foreign ownership and large-scale tax avoidance. Like Gary Stevenson says, 'It's not growth, it's inequality', that's the real problem. We need to tax wealth more more aggressively - a land-value tax is an obvious place to start - and we need to draft laws preventing further foreign ownership of strategic assets, as the French do. Most importantly of all, we need to break up the banks,
encouraging a return to local banking and lending, with the privilege of public money creation reserved for 'productive lending'. It was the last Labour government, after all, that oversaw the sale of Cadbury, a major UK asset, to Kraft, a U.S corporation (which used a £7 billion loan from RBS - at the time a UK taxpayer-owned asset!) which closed its UK factory (after promising not to) and which now offshores profits to Switzerland. Now, we have Mandelson installed as US Ambassador and Starmer pathetically grateful for an audience with Donald and about to bend over and agree to further raping of the UK economy. Trump doesn't need to charge us tariffs; we already pay tithes from the UK-based assets his country already owns in the form of vast (virtually tax-free) profits - via infrastructure/tech/property rents and consumer sales - ultimately repatriated to US bank holdings.