Friday 15 January 2010

The Independent's Johann Hari criticises Cameronics!!

In today's Independent its columnist Johann Hari criticises the economic policies of Tory leader David Cameron, which have been instrumental in the collapse of the Irish economy. He makes an excellent case for continuing stimulus policies and laments the self-strangulation of Labour.
Hari notes that Nobel Prize winner Paul Krugman is shocked by the economic policies of Cameron.
I suppose my view is that the UK economy has received quite a bit of medicine in the form of low interest rates, low exchange rate and high level of printed money, so we will have to wait a bit for the patient to recover. I don't share the view that economic growth will make the public debt problem go away but it will help if we make a modest start in reducing the state deficit. There will probably be an increase in VAT, whatever the result of the general election, and future cuts in the health and education budgets using inflation. For instance, there has been an explosion in the number of unqualified assistants in primary schools, which has not really led to an increase in educational standards.
What we do not need is heavy-handed attempts to reduce governmental budgets such as Labour's slashing of expenditure for the universities.
Going back to Hari's article, he notes that China and Germany are carrying bigger stimulus policies than the UK. However, these two countries can probably afford them.
He also calls for a labour-intensive transition to renewable energies.

1 comment:

Praguetory said...

I see that you are still supporting Brown and his woeful team. As the last financially literate person to support this shower you'll be a museum piece in years to come.