Labour Will Bankrupt the Country

I'm seeing a constant refrain in the right wing press and on Twitter that a Labour administration will bankrupt the country.

While comparing government finances to a credit card is common, it's misleading and here's why: 

• Income & Expenses: Governments have different income sources and spending priorities than individuals. 
• Debt: Governments have lower borrowing costs and spread debt across generations (we've only recently finished paying compensation to slave owners for the emancipation of slaves). 
• Goals: Governments aim for societal well-being, not just individual finances. 
• Extra tools: Governments can print money (QE) and use spending to stimulate the economy. 

Overall, government finances are more complex and require a different analysis than personal finances. A household budget analogy might be more fitting, but still not adequate. Countries may have financial crises, but they don't go bankrupt.

However, while not technically "bankrupt", several countries in history have experienced severe financial crises with devastating consequences: 

• Weimar Germany (1920s): Hyperinflation following WWI crippled the economy. 
• Argentina (multiple instances): Repeated defaults on sovereign debt and economic instability. 
• Greece (2010s): Debt crisis led to austerity measures and social unrest. 
• Venezuela (present): Hyperinflation, currency devaluation, and widespread shortages. 

These situations highlight the significant economic and social repercussions that countries can face due to unsustainable debt and financial mismanagement. While not a direct equivalent to individual bankruptcy, it's crucial to understand the complexities and consequences of national financial crises. Britain is not in the same league as these countries though.

For the above reason, I simply can't understand why Labour has ditched its £28bn Green Investment Plan. In terms of government finances, £28bn is relatively small at roughly 3.4% of government spending, with considerable upsides including meeting climate targets, job creation and industrial competitiveness benefits, environmental protection and social benefits.

Could it me more to do with the false trope of Labour possibly bankrupting Britain hitting home with the swing voters and Starmer heading off any line of attack? I truly hope so and that there will be a reaffirmation of the policy once Labour gain power. If not, then they're not worthy of the Labour legacy and have also swung to the neoliberal end of the spectrum.