MoneyWeek magazine issue 455

Cover of MoneyWeek magazine issue no. 455

Oct 02, 2009 / issue 455

Go Canada

Profit from the land of plenty... PLUS:

Four of the best value stocks in Asia
The weak pound could finish Britain
Brown loses his Downing Street bruiser

From the editor

By John Stepek

Gordon's bankrupt ideology

The financial crisis was all the Tories' fault. So Gordon Brown reckons anyway. Apparently, "what let the world down last autumn was not just bankrupt institutions but a bankrupt ideology". What was this ideology? Ah yes, "the Conservative idea that markets always self-correct but never self-destruct".

Let's ignore the fact that even if this was correct, Mr Brown has been running the economy in one way or another since 1997, and so perhaps should already have spoken out about this 'bankrupt ideology' at some point over the past decade.

Instead, let's take a look at what brilliant new ideas Mr Brown has brought us to replace this erroneous faith we all once had in free markets. Such as the car scrappage scheme. Probably the biggest economic news from the Labour party conference was that the government is to extend this scheme, which involves giving drivers a £2,000 subsidy (£1,000 of which comes from the taxpayer) to swap their old car for a new one.

There are lots of reasons to dislike these schemes, but for me the most offensive aspect is the sheer waste.

• Read the full editor's letter here: Gordon's bankrupt ideology