Friday, June 04, 2010

Beyond Debate

Came across thhis rather neat summary of why New Labour gobs must remain shut for the foresee-able future , whatever savage cuts the coalition feel advisable

The greatest economic mind of the last century( ..ya Maynard..) argued many things, but he is best known for his insight that the capitalist economy is cyclically unstable. Government needs to stabilise economic activity by monetary and fiscal policy. To do that, it should balance the budget over the course of the business cycle. So it should build up surpluses when the economy is expanding in order to run deficits - beyond those that would normally arise from the contraction in output - and boost demand in a recession. This obviously is not a description of what Gordon Brown did as Chancellor after 2002, because he disastrously believed he had abolished the business cycle. The share of public spending in national income rose from just under 40 per cent when new Labour took office to 48 per cent when the credit crunch arrived. That's an extraordinary figure for an economy that was growing briskly throughout that time.

There is just no answer to that


asquith said...

They also can't criticise the government because so many of the most unpopular policies, such as welfare "reform" & spending cuts, are essentially bipartisan & they were doing it all, as much as the short of attention span & selective of memory won't tell you that.

(Look at David Freud's easy defection & how comfortable he felt in either party). No one who was part of the project is in a position to slag Cleggeron off when the only real objection is that they're no longer the ones getting those salaries.

Only Abbott is entitled to condemn the government because she wasn't mindlessly loyal to the party line. I can't see myself voting for her but at least she has stayed true to herself & what she thinks will benefit her constituents.

I appreciated this.

Newmania said...

Ta Asquith

Bill Quango MP said...

The rank and file believed the spin.
They think they didn't lose.
Now they have a Treaty of Versailles problem.
Convincing the party that change is needed when the party only thinks they lost by the 'stab in the back' from the Lib Dems.

Newmania said...

Thats a fabulous reference BQ quite brilliant

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