LibLink: Giles Wilkes – The hidden cost of quantitative easing

Over at The Guardian’s Comment Is Free website, Lib Dem blogger Giles Wilkes – liberal think-tank Centre Forum‘s award-winning chief economist – argues that though quantitative easing was needed to prevent financial collapse, it has made the rich richer, and taxpayers will foot the bill for growing inequality. Here’s an excerpt (but NewsHound does recommend you read the full article to enjoy Giles’s imagined budget speech of a year ago):

QE was the right thing to do: it may become the most significant step that Labour took to fight recession. … [it] quite possibly averted an outcome far worse: an economy-wide insolvency so persistent that Britain may have looked upon Japan’s lost decade with envy.

But uncertainty about how much it may work does not excuse silence about its political ramifications. If QE makes inequality worse, it will be the taxpayer who has to fix the problem. In a new research paper, CentreForum calls for greater recognition of the side-effects of QE.

As we go into a period of fiscal austerity, political decisions about “sharing the burden” need a mature understanding of who has benefited from taxpayer-funded interventions. Some on the right mistakenly believe that it has only been welfare recipients and mythical hordes of public sector bureaucrats. This is not so. In the case of QE, it is the wealthy that have the greatest reason to thank Alistair Darling. Whoever designs the next budget should take this into account.

You can read Giles’s article in full here. And look out for his forthcoming Lib Dem Voice article, coming soon!

Read more by or more about , , or .
This entry was posted in LibLink.

One Trackback

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

If you are a member of the party, you can have the Lib Dem Logo appear next to your comments to show this. You must be registered for our forum and can then login on this public site with the same username and password.

To have your photo next to your comment please signup your email address with Gravatar.

Your email is never published. Required fields are marked *

Please complete the name of this site, Liberal Democrat ...?


Recent Comments

  • John Marriott
    It’s funny how some people remember certain phrases in speeches. Unlike, for example, the well crafted and sincerely meant “You turn if you want to. The la...
  • Lorenzo Cherin
    As ever with many in parties, good sense with overdone elements as well. To compare the idea of the channel crossing with escape from the Taliban makes the M...
  • Mark Smulian
    This Steel speech inspired the first sketch in the first Liberal Revue, with the late Mark Tavener playing an adviser on the phone to Steel. They ended up with ...
  • Caron LindsayCaron Lindsay
    Matt I changed the wording earlier. I have just changed it again to make it even clearer. ...
  • Rob Parsons
    @Stuart W "It means that it will miraculously turn out that we don’t need any new houses in Lib Dem target seats." Totally wrong, Stuart. In Lewes - LibDem co...