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A zombie economy, a hollowed-out democracy, and a political system on life support needs a real alternative – will Jeremy Corbyn and Zarah Sultana supply it?
The UK is in serious trouble — not just economically but politically. According to billionaire hedge fund manager Ray Dalio, we’re trapped in what he calls a “debt doom loop”.
What does that mean?
A combination of rising debt, sluggish growth, and higher taxes, Dalio says, is pushing the UK into a downward spiral.
As the government scrambles for revenue, it risks scaring off the very people it depends on to pay the most — the wealthiest 10 per cent, who contribute about 75 per cent of income tax receipts.
In his words: “If you lose five per cent of that population… you lose 35 per cent or more of the tax revenue.”
It’s a stark warning. But is it new?
Not really.
In fact, many of us on the political left — myself included — predicted this years ago.
Zombie economics 101
Back in 2015, my friend and fellow blogger Kerry-Anne Mendoza coined the phrase “zombie economy” to describe exactly this scenario: a country buried under so much debt and austerity that it has no choice but to sell off every public asset and spend its future servicing private loans.
I later described it like this:
“The intention is to put [a] country under such a mountain of debt that it will sell every public service to private money and spend every [pound] of GDP it ever makes in the future, simply servicing the debt it has run up.”
That would be a walking corpse of an economy, still moving, but lifeless – yet eerily familiar.
‘Starving the Beast’ — UK edition
What we’re seeing today is the endgame of a strategy imported from the United States called “Starve the Beast.” I wrote about it on This Site back in 2012.
The idea, used by George W Bush, was to cut taxes for the wealthy, deliberately run up a deficit, and then claim public services were unaffordable — conveniently paving the way to cut them.
David Cameron and George Osborne brought that model here.
They slashed public spending, imposed austerity, and gave tax breaks to the very richest — all while pretending they were managing the economy responsibly.
(Spoiler: they weren’t. And the “beast” wasn’t the problem — it was just the target.)
The doom loop is not an accident
Ray Dalio now says the UK’s fiscal position is unsustainable. Debt is high. The deficit is 5.7 per cent of GDP — one of the worst in Europe. Public services are failing, and tax hikes are on the table.
But what he’s really describing is the next phase of the austerity project. The consequences have just arrived late.
When you cut the state, sell off assets, and fail to invest in growth, this is what happens: a stagnating economy, collapsing businesses, and governments dependent on shrinking tax receipts.
Austerity didn’t prevent the debt doom loop. It created it.
The political class is sleepwalking
The Labour government under Keir Starmer seems content to continue the same policies under a different banner: no wealth tax; no reversal of NHS privatisation; no break with the logic of austerity.
So where’s the choice between it and any other right-wing UK party?
Back in 2016, Jeremy Corbyn warned that we were sliding into a “zombie democracy” — one that looks like it functions, but in reality is controlled by elites, inaccessible to ordinary people, and increasingly hostile to opposition.
He wrote:
“We are now at risk of having a zombie democracy roaming around a one-party state.”
With both major parties now offering little more than variations on the same failed model, that warning now seems less like political rhetoric and more like prophecy.
The Walking Dead of Westminster
Let’s recap:
-
The economy is flatlining.
-
Public services are collapsing.
-
The government has no plan.
-
The opposition has no courage.
-
And voters are being asked to pretend this is a functioning democracy.
What else would you call this, if not a zombie state?
A zombie economy. A zombie democracy.
A system that has died – but refuses to stop twitching.
A spark of life?
Perhaps there’s a flicker of movement among the living.
My video clip about the new party being formed by Jeremy Corbyn and Zarah Sultana has become my best-performing work in months.
That tells me something: people haven’t given up.
They’re hungry for real alternatives — not just different faces delivering the same failed policies.
But if Corbyn and Sultana want to be that alternative, they need to go beyond symbolism.
They need to learn from what got us here — and offer a bold, credible escape plan.
Five steps to bury the Zombie Economy — and resurrect democracy
Here’s what I suggest:
-
Tax wealth, not just income
Close loopholes. Equalise capital gains and income tax. Introduce a genuine wealth tax.
-
Invest in public services, don’t cut them
Fund the NHS, local councils, education and transport properly — as essential infrastructure, not burdens.
-
Reclaim public ownership
Bring utilities, rail and water back under democratic control. End profiteering in essential services.
-
Empower workers
Rebuild trade union rights. Support co-operatives. Put economic power in the hands of working people.
-
Fix the democratic system
Proportional representation. Strict limits on corporate donations. Rebuild trust in politics through real reform.
Final warning
Ray Dalio’s doom loop isn’t just a financial problem.
It’s a symptom of decades of ideological failure.
We’ve hollowed out the state.
We’ve sold off our assets.
We’ve left millions behind — and now we’re paying the price.
If Corbyn’s new party wants to matter, it needs to break the cycle.
After all, the last thing we need is another zombie in a political system full of the undead.
Share this post:
Can Corbyn and Sultana’s new party break the UK’s ‘debt doom loop’?
Share this post:
A zombie economy, a hollowed-out democracy, and a political system on life support needs a real alternative – will Jeremy Corbyn and Zarah Sultana supply it?
The UK is in serious trouble — not just economically but politically. According to billionaire hedge fund manager Ray Dalio, we’re trapped in what he calls a “debt doom loop”.
What does that mean?
A combination of rising debt, sluggish growth, and higher taxes, Dalio says, is pushing the UK into a downward spiral.
As the government scrambles for revenue, it risks scaring off the very people it depends on to pay the most — the wealthiest 10 per cent, who contribute about 75 per cent of income tax receipts.
In his words: “If you lose five per cent of that population… you lose 35 per cent or more of the tax revenue.”
It’s a stark warning. But is it new?
Not really.
In fact, many of us on the political left — myself included — predicted this years ago.
Zombie economics 101
Back in 2015, my friend and fellow blogger Kerry-Anne Mendoza coined the phrase “zombie economy” to describe exactly this scenario: a country buried under so much debt and austerity that it has no choice but to sell off every public asset and spend its future servicing private loans.
I later described it like this:
That would be a walking corpse of an economy, still moving, but lifeless – yet eerily familiar.
‘Starving the Beast’ — UK edition
What we’re seeing today is the endgame of a strategy imported from the United States called “Starve the Beast.” I wrote about it on This Site back in 2012.
The idea, used by George W Bush, was to cut taxes for the wealthy, deliberately run up a deficit, and then claim public services were unaffordable — conveniently paving the way to cut them.
David Cameron and George Osborne brought that model here.
They slashed public spending, imposed austerity, and gave tax breaks to the very richest — all while pretending they were managing the economy responsibly.
(Spoiler: they weren’t. And the “beast” wasn’t the problem — it was just the target.)
The doom loop is not an accident
Ray Dalio now says the UK’s fiscal position is unsustainable. Debt is high. The deficit is 5.7 per cent of GDP — one of the worst in Europe. Public services are failing, and tax hikes are on the table.
But what he’s really describing is the next phase of the austerity project. The consequences have just arrived late.
When you cut the state, sell off assets, and fail to invest in growth, this is what happens: a stagnating economy, collapsing businesses, and governments dependent on shrinking tax receipts.
Austerity didn’t prevent the debt doom loop. It created it.
The political class is sleepwalking
The Labour government under Keir Starmer seems content to continue the same policies under a different banner: no wealth tax; no reversal of NHS privatisation; no break with the logic of austerity.
So where’s the choice between it and any other right-wing UK party?
Back in 2016, Jeremy Corbyn warned that we were sliding into a “zombie democracy” — one that looks like it functions, but in reality is controlled by elites, inaccessible to ordinary people, and increasingly hostile to opposition.
He wrote:
With both major parties now offering little more than variations on the same failed model, that warning now seems less like political rhetoric and more like prophecy.
The Walking Dead of Westminster
Let’s recap:
The economy is flatlining.
Public services are collapsing.
The government has no plan.
The opposition has no courage.
And voters are being asked to pretend this is a functioning democracy.
What else would you call this, if not a zombie state?
A zombie economy. A zombie democracy.
A system that has died – but refuses to stop twitching.
A spark of life?
Perhaps there’s a flicker of movement among the living.
My video clip about the new party being formed by Jeremy Corbyn and Zarah Sultana has become my best-performing work in months.
That tells me something: people haven’t given up.
They’re hungry for real alternatives — not just different faces delivering the same failed policies.
But if Corbyn and Sultana want to be that alternative, they need to go beyond symbolism.
They need to learn from what got us here — and offer a bold, credible escape plan.
Five steps to bury the Zombie Economy — and resurrect democracy
Here’s what I suggest:
Tax wealth, not just income
Close loopholes. Equalise capital gains and income tax. Introduce a genuine wealth tax.
Invest in public services, don’t cut them
Fund the NHS, local councils, education and transport properly — as essential infrastructure, not burdens.
Reclaim public ownership
Bring utilities, rail and water back under democratic control. End profiteering in essential services.
Empower workers
Rebuild trade union rights. Support co-operatives. Put economic power in the hands of working people.
Fix the democratic system
Proportional representation. Strict limits on corporate donations. Rebuild trust in politics through real reform.
Final warning
Ray Dalio’s doom loop isn’t just a financial problem.
It’s a symptom of decades of ideological failure.
We’ve hollowed out the state.
We’ve sold off our assets.
We’ve left millions behind — and now we’re paying the price.
If Corbyn’s new party wants to matter, it needs to break the cycle.
After all, the last thing we need is another zombie in a political system full of the undead.
Share this post:
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