| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:It's more than just one quarter | |
| Posted by: | Sam Hearn Cllr | |
| Date/Time: | 26/04/12 14:48:00 |
| I thought that the efficacy of the Roosevelt "New Deal" had largely been debunked by economists in recent years? It was good PR and increased confidence but apart from some grand public works that was it. The US economy did not really get back on it feet until rearmament began for WW2. The myth of the "New Deal" is however a strong one and few of us like to be told that Father Christmas does not really come down the chimney with Christmas presents. It is not my intention to sound like a far right nutter but ultimately you cannot "buck the market" you can only kick the problem down the road for a few months or years if you are lucky. There are no magic bullets as supporters of QE are finding - side effects of this powerful "drug" are both dangerous for social cohesion and debilitating for the real economy. In reality at a national level "austerity" Britain has still to really bite. The Government will spend £40bn more (not less) this year than it did in 2009. As a result for every £1 spent by the Government 23p will have to be borrowed. More capital spending on the right infrastructure projects could have a strong multiplier effect but most of the money spent will have to be raised by higher taxes and or lower Government expenditure in other areas. |