It is reported this morning that Jeremy Hunt is planning a £60 billion package of tax increases and spending cuts to be announced on 17 November.
This, of course, may not be true and might be a deliberate Treasury misinformation exercise. But I doubt it.
I could write at length on the folly of this, and the dire outcomes that will result. Or i could share this tweet I posted not long ago:
We are being driven to not just recession but to depression, and all for no reason.
But you can be sure Labour will do nothing to stop it: Starmer and Reeves talk nonsense about how they will save the country by abolishing the domicile rule whilst this is going on in a vain attempt to disguise their own incomprehension on how public spending is really funded and their own dedication to austerity.
I despair.
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It is enough to make strong men or women, weep. What a mess.
Quite.
For many people reading about what a government should do when facing a recession, your points will seem counter-intuitive because they have always heard the mainstream line. I would always add an explanation with a link to a more detailed post, so people can see that it is not just a random suggestion! Bill Mitchell suggests a “truth sandwich”, among other framing suggestions:
Article: http://bilbo.economicoutlook.net/blog/?p=39644
Presentation: https://gimms.org.uk/wp-content/uploads/2019/09/Bill-Mitchell-Training-the-MMT-Trainers-September-2019.pdf
There are hundreds of oats here explaining this, plus Keynesian economics
But if I get time….
I listened yesterday to a Q&A with Huw Pill, head of monetary policy at the BofE. Confirmed all that you have been saying. Desperately narrow, misguided thinking. Then your latest podcast (Bunker?) – perfect counter to Pill.
I was wondering whether the Scandinavian countries might be exemplars. High government spend into the economy. High tax back. Healthier economies and better public services. A bit sweeping I know.
I must share they one here….