There has always been debate within the Labour Party, and other left-wing parties, about the common ownership of industry. This has invariably led to traditional forms of nationalisation, being the public operation of industry, or co-operatives.
Whilst co-operatives are a great idea, there are limitations in that investment is usually directed towards stakeholders rather than enterprises. Public saving differs from co-operative ownership and public operation in that it relies on public saving too finance public investment, advanced through taxes.
Assume for one moment that the sole-purpose of the Labour Party is the redistribution of wealth, then public saving produces the desired outcome in an efficient manner, utilising the mechanisms of the market.
Public saving is using budget surpluses to finance capital projects, but it does not have to be confined to the financing of public investment, as it can go further and raise a surplus of savings which can be…
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