That said in some areas the state is much more likely to be managing activity than now, and will do so without any pretence that it is mimicking the market. The confidence of the public sector in its own ability to manage in the public interest which cannot be determined by the power of consumer spending alone will be greatly enhanced. The key performance indicators may recognise financial constraints but it will be service priorities that will predominate.
Taxes may, or may not rise. It is highly likely that those on financial wealth will. Their power to avoid obligations will be broken by international cooperation, enhanced accountability and the sensible use of bank and other financial data to identify those who really owe taxes on the reward they make from the societies that provide them with benefits. Some of the resulting taxes will be new, but taxes on income and consumption, the use of land and trade will all still be found. Accounting though may look very different: a system of reporting that is at least as much concerned with returns to employment as it is with capital will look very different to one that seeks to hide financial power from view.
What will be certain is that the social safety net will become more central to the relationship between the state and those who live in its jurisdiction and it will be the state who will be supplying most of the associated services.
To put it another way, such a system will redraw the boundaries of power, management and control and redefine the reason why they exist. Capitalism – in the form of the power of the market – will be embraced and encouraged to allocate resources to maximise the return to people across a range of interests, from being consumers, investors, employees and fellow citizens (each of which it will be realised can exist simultaneously and not discretely) – but the limits to that power will also be recognised. When there is a natural monopoly there is no effective market. When there is no choice the consumer is disenfranchised. When the market cannot price returns there is no point pretending that it can. Then the state has to act and use its discretion, and there is also no point in pretending that when doing so it is not rational: truly accountable democracy provides that rationality.
And gives birth to fascism.
He really does have to go and look up the economics of fascism, doesn’t he? Even if only to make sure he’s getting it right.