Tag Archives: austerity

Austerity and Napoleon

There is an old joke: Income tax was introduced (by Pitt the Younger) to pay for the Napoleonic wars and now that those wars are over, surely it must be time to get rid of Income tax.

As a Liberal I believe in the individual and to build a society that will support and nurture that individual’s potential. If you look at examples in history, in almost every case it’s the individual who has made a difference so it makes sense to support creative/driven individuals to enable them to realise their vision.

However, society is made up of groups and communities with individuals of different capabilities. The predicament is to have a tax system that not only encourages investment and reward but one that ensures society is also equally served.

Posted in Op-eds | Also tagged and | 18 Comments

LibLink: David Laws – UK reaches socially acceptable limits of austerity

David Laws has written an article in the Financial Times, but you have to be a subscriber to read it.  We will give you a flavour of the piece here so you can decide whether to subscribe (the trial version is £1 for 4 weeks).

In May 2010, as the chief secretary in the UK’s coalition government, I warned that the choices available to us in Britain’s biggest postwar spending squeeze lay between the unpalatable and the disastrous, and that we were moving from an age of plenty to an age of austerity.

It has not been a bad prediction, by political standards.

At that time, public sector austerity was both necessary and deliverable. Necessary, because our budget deficit was an eye-watering £163bn, in excess of 10 per cent of gross domestic product. Deliverable, because the UK had only just ended an unprecedented expansion of public spending under the Blair and Brown governments.

Posted in LibLink | Also tagged | 23 Comments

Is austerity working? And do all debts have to be paid?

 

These questions invite binary “Yes” or “No” responses. More considered approaches exist. We need to consider the economic consequences of debt repayment, structural and attitudinal causes and contributions, responsibility for debts both particular and general, beneficiaries and losers, and, how they may be prevented in the future. Also, can such enormous debts be paid?

This requires analysis and accurate, accessible language. In Economics and Finance, that which has different labels is sometimes not significantly different and that which is under one label has significant differences. For example, money consists mainly of credit creation since loans create deposits and loans are debts.

Debt is a form of relationship: financial activity connects and affects people.

Posted in Op-eds | Also tagged | 35 Comments

Austerity economics, Brexit and the Government’s deficit from a Keynesian perspective. What are the choices?

 

Brexit or no Brexit, we have to improve and stimulate our flagging economy. We cannot blame Brexit for everything. We haven’t even started to leave the EU yet. Nothing has really changed. If there are problems we need to look at the effects of past years of austerity economics first.

The usual charge made against those of us who are of a more Keynesian inclination and who argue against austerity economics is that we are far too ready to let the Government’s deficit increase. In other words, that our policies will involve too much public borrowing, which will only add to high levels of public debt.

This is not necessarily true. But, we do need to understand what the government’s deficit is, how it originates, and why it was so difficult for George Osborne to make good his election pledges of reducing it, let alone turning it into a surplus. We can perhaps expect Philip Hammond to have the same problem. Tories seem very slow learners at times.

Posted in Op-eds | Also tagged and | 11 Comments

George Osborne’s decisions are coming back to haunt him

Commenting on George Osborne’s planned spending cuts, Liberal Democrat Treasury Spokesperson Susan Kramer has said:

Posted in News | Also tagged | 16 Comments

Was Vince Cable proved right on austerity?

When the histories of the coalition government come to be written, those chapters focussing on the role of Vince Cable will be some of the most fascinating. Vince’s fierce intelligence combined with a (perhaps deliberate) flair for the enigmatic meant he was involved in some of the most interesting of the coalition’s key moments.

One area of particular significance is likely to be the analysis of his views on austerity. Throughout the coalition Vince was often portrayed in the media — and by some Liberal Democrats — as a brave warrior fighting an axe-wielding Tory-Lib-Dem cabal of ideological austerians. Yet this seems to me to be precisely wrong.

Posted in Op-eds | Also tagged , and | 20 Comments

Ed Miliband’s speech: 5 thoughts on what it means for Labour, Tories, Lib Dems and the 2015 election

Ed MilibandI listened to, rather than watched, Ed Miliband’s speech to the Labour party conference yesterday. On the up-side that meant I missed the three hammy mid-speech standing ovations (shades of IDS c.2003); on the down-side it accentuated the peculiar whooping of some of the more excitable delegates (calm down, it’s just a politician talking). In its own terms — getting noticed for its content rather than simply as an impressive no-notes memory feat — it was an undoubted success. Matthew Parris in The Times rather brilliantly captures the flavour:

Crikey

Posted in News and Op-eds | Also tagged , , , , , , and | 26 Comments
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    Layla, as she so often does gets to the heart of the issue in saying " the idea that university should be free for everyone...
  • User AvatarAndrew McCaig 23rd Feb - 12:27am
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