Comments on: Chancellor has ducked the tough decisions – Mark Littlewood and Philip Booth on the Pre-Budget Report http://blog.iea.org.uk/?p=1137 institute of economic affairs Wed, 08 Sep 2010 21:42:56 +0100 http://wordpress.org/?v=2.8.5 hourly 1 By: A statistic for Gordon Brown to note « Autonomous Mind http://blog.iea.org.uk/?p=1137&cpage=1#comment-38577 A statistic for Gordon Brown to note « Autonomous Mind Sun, 24 Jan 2010 01:30:28 +0000 http://blog.iea.org.uk/?p=1137#comment-38577 [...] Index is based primarily on data from July 2008 to June 2009 – before December’s disastrous Pre-Budget Report and the arbitrary supertax on bankers’ [...] [...] Index is based primarily on data from July 2008 to June 2009 – before December’s disastrous Pre-Budget Report and the arbitrary supertax on bankers’ [...]

]]> By: Philip http://blog.iea.org.uk/?p=1137&cpage=1#comment-34716 Philip Fri, 11 Dec 2009 09:57:11 +0000 http://blog.iea.org.uk/?p=1137#comment-34716 Regarding, David's comment...I agree that opinions vary about whether cutting public spending now is a good idea, but mine is fairly clear. From a pure confidence point of view, one of the reasons for lack of confidence is the degree of debt. Piling up more debt (albeit government debt) adds to this problem. From a macroeconomic point of view, I do believe in crowding out. Government spends £1, one way or another that has to come from the private sector. Of course, people may be repaying debt for some time. That reduces consumption but need not reduce national income as long as monetary policy recognises that interest rates should be lower and, in consequence, sterling would be lower too. Regarding, David’s comment…I agree that opinions vary about whether cutting public spending now is a good idea, but mine is fairly clear. From a pure confidence point of view, one of the reasons for lack of confidence is the degree of debt. Piling up more debt (albeit government debt) adds to this problem. From a macroeconomic point of view, I do believe in crowding out. Government spends £1, one way or another that has to come from the private sector. Of course, people may be repaying debt for some time. That reduces consumption but need not reduce national income as long as monetary policy recognises that interest rates should be lower and, in consequence, sterling would be lower too.

]]> By: Peter http://blog.iea.org.uk/?p=1137&cpage=1#comment-34662 Peter Thu, 10 Dec 2009 21:49:37 +0000 http://blog.iea.org.uk/?p=1137#comment-34662 The problem here is that there is, as yet, not enough pressure on politicians to act. Both Labour and the Tories wish to put off any detailed prescriptions until after May next year and the markets seem content to wait as well. Everyone knows that Darling and others are not being straight, but this seems to be expected and accepted. There is also an assumption, probably correct, that most voters are more than happy to have the pain delayed for as long as possible, and anyway, they too assume that politicians are lying to them. One has to fear that the politicians will continue in this manner until they are forced to act otherwise. The problem here is that there is, as yet, not enough pressure on politicians to act. Both Labour and the Tories wish to put off any detailed prescriptions until after May next year and the markets seem content to wait as well. Everyone knows that Darling and others are not being straight, but this seems to be expected and accepted. There is also an assumption, probably correct, that most voters are more than happy to have the pain delayed for as long as possible, and anyway, they too assume that politicians are lying to them. One has to fear that the politicians will continue in this manner until they are forced to act otherwise.

]]> By: D.R. Myddelton http://blog.iea.org.uk/?p=1137&cpage=1#comment-34661 D.R. Myddelton Thu, 10 Dec 2009 21:49:08 +0000 http://blog.iea.org.uk/?p=1137#comment-34661 A significant part of the continuing credit crunch is a serious lack of confidence among the population generally (consumers, savers, wage-earners, pensioners, voters, etc.) Opinions may vary about whether cutting government spending now is a good idea, or whether that might risk delaying or choking off the hoped-for 'recovery'(which Alistair Darling always seems to see about three to six months ahead). But unless and until the government is prepared to spell out explicitly some of the 'hard choices' it intends to make (possibly implementing them after the general election)confidence is most unlikely to be restored. One has the impression that the politicians are just playing politics A significant part of the continuing credit crunch is a serious lack of confidence among the population generally (consumers, savers, wage-earners, pensioners, voters, etc.)

Opinions may vary about whether cutting government spending now is a good idea, or whether that might risk delaying or choking off the hoped-for ‘recovery’(which Alistair Darling always seems to see about three to six months ahead).

But unless and until the government is prepared to spell out explicitly some of the ‘hard choices’ it intends to make (possibly implementing them after the general election)confidence is most unlikely to be restored.

One has the impression that the politicians are just playing politics

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