At this stage the long process of considering possible measures is concluding. What objectives the government will try and achieve, and what measures they will use will now have been decided. One thing is for certain, the Chancellor has not wanted for advice.
Some people are very keen to have more supply side incentives, others want an expansionary budget to boost aggregate demand. This reflects the deep concern people have for the state of the economy.
The piece below comes from The Guardian and is an opinion piece on what should happen. This is a thoughtful article, but does represent one point of view (a Labour front bench MP) so please remember that when reading it.
Although I want to attack this piece from a conservative point of view I will abstain and instead just say that yes if labour were in power as this piece suggests they would just spend like it was going out of fashion but this is not how the Coalition are likely to tackle the issues. The main point from which I doubt this piece is the lack of consideration for external shocks. He attacks the government for not knowing which way the economy is going to turn but in the position we find ourselves due to Globalization, I would not expect the government to predict exactly what is going to happen. Our position is very much determined by what is going on all over the world and not even the supposed super hero that is 'Chuka Umunna' will be able to predict exactly what is going to happen in the entire world. Take for example the over supply of homes in China where they over estimated population growth - what if they were to end up in depression? Or is it just more important to extend our national debt?
ReplyDeleteBit of politics Brendan?
ReplyDelete