As the FT notes this morning:
The head of Britain's biggest employers' group has strongly criticised the government for the “really disappointing” implementation of its growth plan, asking: “Where are the diggers on the ground?”
The comment prompts a number of thoughts.
First it's a good question.
Second, what this clearly shows is that the CBI think that the government is a wealth creator.
Third, it clearly thinks the government is failing to deliver.
Fourth, if that's the CBI's view why does it still believe in austerity?
Fifth, if the CBI are Keynesian now, why isn't the government falling into line?
Sixth, when the CBI says in future government is a burden on business would they kindly recall their dependency upon it, which dependency I noted yesterday.
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My favourite Shiller paper on behavioural economics is ‘HUMAN BEHAVIOR AND THE EFFICIENCY OF THE FINANCIAL SYSTEM’ from February 1998. If people haven’t read it, they should (available without subscription). On page 12 there is a section on ‘Mental Compartments’ which starts:
“Related to the anchoring and framing phenomena is a human tendency to place particular
events into mental compartments based on superficial attributes. Instead of looking at the
big picture, as would be implied by expected utility theory, they look at individual small
decisions separately.”
There’s lots of different concepts in the paper to think about, and I’m sure the CBI ticks quite a few boxes.
[…] Euro-mania by dangling fantasy renegotiated EU terms. The CBI added a stinging attack on Osborne’s failure to deliver “diggers on the ground” to kickstart the economy. The G4S security shambles, summoning 3,500 soldiers — some due to be […]
[…] Euro-mania by dangling fantasy renegotiated EU terms. The CBI added a stinging attack on Osborne’s failure to deliver “diggers on the ground” to kickstart the economy. The G4S security shambles, summoning 3,500 soldiers — some due to be […]
[…] Euro-mania by dangling fantasy renegotiated EU terms. The CBI added a stinging attack on Osborne’s failure to deliver “diggers on the ground” to kickstart the economy. The G4S security shambles, summoning 3,500 soldiers — some due to be […]
[…] Euro-mania by dangling fantasy renegotiated EU terms. The CBI added a stinging attack on Osborne’s failure to deliver “diggers on the ground” to kickstart the economy. The G4S security shambles, summoning 3,500 soldiers — some due to be […]