Tag Archives: Modern Monetary Theory

How to beat Johnson’s government on economics

Might election campaigns have the foundations of attractive ideas, emotional appeal and a plausible previous record?

This government has/had strong emotional appeal, especially through its leader. Its ideas have the benefit of being based on the currently dominant economic theory of Neo-liberalism. It is supported, directly and indirectly by the mainstream media which, mostly, bolsters the performance of HM Government.

Opposition parties lack the theatrical style of Mr. Johnson. Therefore attack his language techniques. Ratios of jokes to facts? Ditto facts to inaccuracies. Ditto future tenses to past tenses. Which speech has the most metaphors etc.?

Posted in Op-eds | Also tagged , , and | 50 Comments

Q: Coronavirus state aid.  Who pays the bill?

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A: No one has to pay.

I can imagine the fog in an economist’s head confronted with my question and answer.   This new thinking appears as alchemy to orthodox economists.  Conversely, what they trot out appears to me as an outdated theology, an irrelevant contorting of how many angels can dance on the head of a pin.

Their hand wringing is hollow, “Things cannot go back to how they were.  No More Austerity!” they cry, “The New Sense of Community will not stand for it!”

Chests puffed out quickly deflate as that thread of managerialism runs deep, doesn’t it?  Someone HAS to pay for this Coronavirus aid package that Rishi Sunak has found tucked behind the sofa cushion!   They sweat bullets feverishly calculating the final cost and devising ingenious ways for only the hated bankers and Richard Branson to pay for it, before finally acknowledging that maybe the darkest, quietest voices in the Tory Party have a point….maybe taxes do need to go up, maybe some services do need to be cut.

Any Liberal Democrat who carries on dancing to that Tory tune will lead us to our final death throes.   So let me be clear.

Posted in Op-eds | Also tagged and | 65 Comments

The best thing about the Green New Deal you never knew and why this could be our new superpower

Short of living under a rock since Greta Thurnberg started getting regular visits from her school attendance officer, everyone knows what the Green New Deal is; a government led transformation of our carbon intensive economy to a green one providing lots of well paid jobs in the process.

A few of you might have your suspicions about how it could be paid for ranging from:

  • hope (economic boom, so taxes!)
  • to panic (it’s the bees!  We need to ignore the cost and just get on with it!)
  • to cynicism (ahhh, I remember the first Green Deal).

You’d all be wrong.

The Green New Deal should be paid for in the same way we pay for Quantitative Easing (or to give it its proper name, Enriching The Rich Because Trickle Down).   At the stroke of a keyboard, money will appear in the government’s accounts, ready for spending into our hot little hands.

OMG!   But what about the money we’ll owe China?   Haven’t the boomers already screwed the planet?   Don’t let them add to the debt mountain!

Keep Calm and Read On.   Economics 101 has meant that you think about an economy like a household budget.   Money is earnt, then spent.   The difference every month is the deficit, the cumulative figure is debt.

Debt is bad.   Debt needs to be paid back.   Debt means higher taxes.   Too much debt means higher interest rates!   I don’t care what Ford Prefect says, PANIC!

Posted in Op-eds | Also tagged and | 55 Comments
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Recent Comments

  • Lorenzo Cherin
    David Rachel Reeves is able, for sure, but has an awful past atrtitude she has not disowned Please see links here https://www.theguardian.com/politics/...
  • George Thomas
    With respect James Pugh, I disagree with your suggestion that paperwork does more harm than good (the process of getting to court isn't as smooth or easy as it ...
  • David Raw
    @ Lorenzo Cherin. I’m afraid I don’t recognise the comment you attribute to Ms Reeves, and from what I know of her it sounds very out of character. A...
  • Steve Trevethan
    How can Labour and/or the L Ds present a useful and valid opposition when they have the same disastrous economic policy, namely Neoliberal Economics, as the par...
  • Katharine Pindar
    William, I am very glad you have raised the Social Contract idea in your excellent article. Since it is about the rights of all citizens in Britain, there is n...