JOHN R ARMSTRONG describes Labour’s economic plans as “unbelievable” and infers that there is insufficient money available to carry out such a programme (HAS, Sept 29).

However, the idea that there is a fixed amount of money in society is frankly ridiculous.

Money is created by work in the real economy – through production and trade.

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The problem of modern society is that tens of billions of pounds of public finance has been pushed into what are frankly nonproductive sections of the economy, notably banking. This has fuelled a wave of property speculation which has led to everyone being worse off other than property speculators, hedge fund managers, tax dodgers and other forms of social parasite.

Jeremy Corbyn would borrow some short term money, but it would be invested in the real economy, such as building social housing and big infrastructure projects such as rail modernisation.

By reflating the economy in this way, high paid jobs would be created and manufacturing suppliers would prosper, thus further increasing the number of higher paid jobs.

Increases in wages would result in more revenue for the government from both taxes on incomes and VAT receipts.

Moreover, Labour’s plans to deal harshly with tax havens would yield billions of additional government revenue.

If Labour’s radical programme is carried out there would be no long term increase in government debt.

In fact the programme is virtually self-financing.

John Gilmore, Bishop Auckland