Miliband’s economic immaturity

As an economist working in politics, I’m sometimes shocked at some of the arguments about the economy. But today’s statement on welfare reform is economically shocking.
 
Miliband argues that you can’t reform welfare until there are more jobs. Set aside the fact that this is another area where Miliband’s argument is Lord make me virtuous, but only tomorrow. Team Brown delayed welfare reform for over a decade under Labour, and their position today is to call for yet more delay.
 
Let’s look at the economics.
 
First, Miliband falls for the classic lump of Labour fallacy. It’s as if he thinks there are a set number of jobs to go round. But when people get a job, they usually earn more, and so can spend more, and so generate more jobs for others. Miliband in effect is arguing that getting a job harms the economy by taking away jobs from others.