Even economic thinkers close to McDonnell wonder if a Corbyn government could effect such a transformation.
Paul Mason, author of Postcapitalism, says: “They have a big task with a small team. We face problems – climate change, information technology destroying jobs, a market economy that in many sectors is not capable any more of generating value – that were not faced by Keynes,” the last economist to shift British capitalism to the left, more than 70 years ago.
Mazzucato is probably McDonnell’s favourite contemporary economist. In her much-cited 2013 book
The Entrepreneurial State, she argued convincingly – as the Labour manifesto did – that through state-funded research and other investment, government acts as an essential accelerator of capitalism rather than a drag on it, as free-marketeers usually claim. Last year, she gave the first lecture in an ongoing series of Labour events intended by McDonnell to set out a “New Economics”. According to the website LabourList, “McDonnell sat [in] rapt attention throughout.”
In a hot meeting room at University College London, where she is director of a new institute for innovation, the Italian-American Mazzucato told me that the 2017 Labour manifesto was “a turning point” in British economic policy, “full of good stuff, a new energy”. She advises McDonnell. Yet she also advises the Conservative business secretary, Greg Clark, and the SNP. She thinks Labour could do better: “I say to them, ‘You sound defensive. You sound like you know what’s wrong with the economy, rather than what could happen.’” She says Labour needs to explain its economic policies more compellingly: “When you do bold things, if you don’t have the language to describe them, you’re going to be in trouble.”