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Anorak | Why Increasing Government Spending Won’t Work

Why Increasing Government Spending Won’t Work

by | 14th, July 2011

OK, yes, so we know the economy’s screwed. At the very best we’ve got high debt, low growth, high unemployment when what we’d really like is, in order, low, high, low.

So, the big question is, what should we do about this? You’re not surprised, of course, that the various answers to this come strictly along party political lines. Labour say that we should be spending lots more lovely government money because Labour’s support largely comes from those who receive lots of lovely government money. The Tories want to spend less of the taxpayers’ money because their support comes largely from those who have to pay the tax bills.

Not really all that enlightening. So, where does the truth lie?

The argument against spending lots more is that government in general just pisses it away. The argument in favour is based on the work of one JM Keynes who said that even if it is pissed

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Posted: 14th, July 2011 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink