Tag Archives: investment spending

Same old Economic Orthodoxy

In 1997, the Labour Party inherited a balanced budget from the Tories and for well over ten years we had Gordon Brown telling us that he had got rid of the boom and bust cycle. By 2009 the deficit had ballooned to £171 billion, higher than during the recessions of the 1980s, the 1990s and even when the Labour party went to the IMF, cap in hand, in 1976 (another fine mess they got us into) put together.

Economic orthodoxy maintained by Labour and and the Tories for the last forty years or so ensures the same economic models: over reliance …

Posted in Op-eds | Also tagged | 55 Comments

Can the long-term decline in government investment spending be reversed?

Investment spending vs social security spendingIf actual government investment spending bore any relation to the amount of time politicians spent talking about it, Britain would surely have one of the highest rates of government investment in the world. In fact, for all the talk there are few signs of a reversal in one half of the most notable trend in Britain’s public finances over the last half century: the decline of government investment.

I say one half because there is another part of the trend, and it is the flip side of the same coin: the general trend of increasing spending on social security.

Posted in Op-eds | Also tagged | 25 Comments

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  • User AvatarRoland 18th Mar - 8:53pm
    @Micheal BG - I can find no credible reference that says Serco is the loan provider, only that as said in the article, Serco were...
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    There's a general assumption that the Lib Dems going into coalition with the Tories in 2010 has been the main reason for the demise of...
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    Peter was a great man, a great personality ............he will be sadly missed. He was a tremendous campaigner, helping my Dad in being elected as...
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    @ David Cooper "So to see that Corbyn is no more than an overgrown six’th former preserved in aspic from the 1980’s, with ossified anti-western...
  • User AvatarPeter Martin 18th Mar - 7:29pm
    @ Joe B "Deficits are our saving" http://bilbo.economicoutlook.net/blog/?p=10384