Austerity Stormtroopers Forget Their Economics

"The US economy has grown more slowly than the UK economy so far this year, despite fiscal stimulus in the former and fiscal consolidation in the latter, showing that the problem is not too much fiscal responsibility"- George Osborne, The Chancellor of the Limey Exchequer

This was used to bogusly suggest that austerity, not stimulus, is the way to grab economic growth. When did folk forget their economics, using emotional rant about debt to replace sound thinking? Even the IMF, god bless them, is trying to backtrack and get through to the austerity 'end is nigh' herd.

 

Guess you ought to read what Christine had to say today .As in IMF .

The only clue I am prepared to give you is that QE1 , 2 and 3 ( you probably have not picked up on the latter yet) were only about getting money to Banks .
As you will see , Gorgeous George is one of the smartest British voices you have heard from in a long , long time .
Not that you would have criteria on which to make a judgement .

 

Why don't you ever bother with economic content? Can you deny that 'austerity' has deepened recession problems? If so, please provide some credible evidence. Try not to use the Daily Mail!

 

No government policy has ever been beneficial to an economy. Austerity is curbing the state's spending, how could that be bad for society? Except, of course, unless the state is encouraging a debt based economic system.

 

This is a ridiculous stance. Government interventionism is typically behind the very existence of capitalist markets.

Here we have nothing complex. We have an appreciation that austerity strangles demand and, by increasing welfare payments and stunting tax receipts, can increase debt.

 

This implies that every private sector employee is reliant on Government spending of some sort.. That is patently false.

the Government is not, and cannot ever be, the primary stimulator of a capitalist economy.

That is Chinese State Capitalism.

 

To deny that government is the integral economic agent in capitalism isn't a cunning idea! You effively have to ignore economic history, economic theory and economic reality. Good luck with that one! Of course austerity is worse than that. Its not just based on economic ignorance. It can actually lead to a result inconsistent with the dogma: more debt

 

So rewarding people for not contributing to society increases overall wealth in society?

You keynesians are ridicilous....

 

It only leads to more debt if you insist on having an overly compassionate society.

Social Darwinism is the way to go.

 

This only shows an innocence of the 'needs' of capitalism. Maintaining the physical efficiency of the unemployed is a vital aspect of maintaining capitalist profit.

 

You didn't bother to come out with a counter argument. Try economic reality and go from there!

 

What was the benefit of stimulus?

Many that received it, paid down their debt, contracting the money supply - Keynes "multiplier" was well below 1.

 

The differences in the growth rates is a tad of the clue (and the consequences that then has for problems such as hysteresis in unemployment rates)

 

Meaning, using UK to US, austerity is the better recovery strategy.

 

Try again! Austerity has led to a weakened UK economy that has ironically intensified debt problems

 

About as wrong as you could be . Again .
We are now borrowing less per month on a year to year basis and there are no extra debt problems --- it's UK not the US we are talking about .
Of course growth has halted .
But what sort of idiot would expect growth when borrowing is down and inflation is up and spending is down .
Unlike Reiver , the International Ratings Agency have so far not touched our Credit Ratings -- unlike the US and every EU significant economy, save Germany .
On the other hand , the US has gone from bad to worse as has been noticed by the Ratings Agencies . Incidentally with US unemployment now at over 20% , the outlook for it is grim .
See my dissertation on the true US unemployment figures in the World News Section --- Americans did not dare Post on it because of complete denial .

 

You best write off to Osborne! In his Autumn Statement he detailed the rising debt problems: borrowing would be £5bn more this year than originally forecasted, £19bn higher next year and £30bn higher the following year. Even these figures were painted as rather rosy.

Balls, despite his unfortunate choice of football team, summed it up nicely: Cutting too far and too fast had led to "well over £100bn more borrowing than the chancellor planned a year ago"

Limey whine over US unemployment figures isn't a cunning idea. The Americans are relatively open about their figures, providing measures capable of measuring hidden forms of unemployment. In contrast, since the monetarist folly of the Milk Snatcher the Brits have hid their unemployment with sickness benefit. And today's regime? They're much keener on using underemployment to try and sweep it under the carpet

 

Look up Paul Volcker and come back when you have some facts to back up your statements.

 

Actually it is an American whine , researched and published by that tribe and gaining currency .
Jesus . The very people who produce the figures in line with directives , separately then say the official figure misrepresents the correct figure by about 100% . Then one should listen , and not blame it onto some far away superior tribe .

 

Again, not a cunning idea to bring up US unemployment when limey figures are notoriously suspect. A victim of the folly of monetarism no less!

 

I thought only Russians resorted to that desperate type of response ------ exaggeratedly , why accuse us of killing thousands when a woman in Boston did this and that , blah , blah .
In other words , two eruptions , one measuring 3,5 and the other 8.0 , are broadly the same , because both are eruptions .

And suddenly our figures are seriously suspect . Again a secret police tactic --- a non specific statement of purported fact with not the slightest support evidence .
In principle , I suspect all Government figures are being massaged for obvious reasons . But , pray tell us about the UK "strange" reporting system which comes even close to the US system that understates unemployment by more than 100% .
I am putting on my red nose in anticipation of being entertained .

 

This is just a poor attempt at hiding from the content of the post. Can you dispute the problems inherent in British unemployment figures? No. Can you dispute that the problems can be traced back to the application of non-Keynesian macroeconomics that engineered an economic collapse? No again.

Your attempt to refer to unemployment was as ill-advised as your misrepresentation of Britain's debt (and the Tory's significant increase in projections because of increased growth problems)

 

I do not deal in waffle . Or techno speak .
Unemployment in the US exceeds 20% and in the UK it is under 9% .
The UK figure is "good " given figures in other EU major economies and even very satisfactory , given the so called Austerity programme that we installed .
It was predicted that UK unemployment would rise to about 3.1 million before matters improved . We have no problems so far . We are on target though naturally those affected are unhappy .
Come back to me in English please .

 

You don't seem to deal with economics! By referring to unemployment (without any content mind you), you've only introduced another example of where non-Keynesian economics has damaged the economy. I of course note that you cannot respond to the content in the previous post.

This is nonsense.

Given the numerous British Political Economists who have developed economic analysis, Economics and English goes hand in hand. And, as you cannot dispute, we know that austerity has intensified growth problems and increased debt problems. Your original post therefore was drivel and you cannot defend it