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The Sound Of Chickens Coming Home To Roost

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A couple of weeks old, but well worth a read.

Essentially argues that fiddling has failed and the only answer now is to wind back the state.


With base rate at 0.5%, rate cuts are no longer an option. With the deficit still at frighteningly high levels – and with government borrowing still rising – neither stimulus spending nor tax reduction is a remotely viable proposition. All that is left is quantitative easing (QE), intrinsically a counsel of despair even if the UK can somehow buck the economic logic which links money-printing to inflation.In any case, macroeconomic intervention has hardly worked well so far. Between them, governments have borrowed £390bn (27% of current GDP) over three fiscal years, and have poured in a further £200bn (14%) through QE. Put simply, this huge intervention hasn't worked. So it would hardly be too much to say that effective macroeconomic options no longer exist.


The key point, however, is that the exhaustion of macroeconomic options perforce means that the only viable policy choices lie on the supply-side. Historically, jobs are created by small and medium-sized enterprises (SMEs), not by big ones, so the aim should be to offer help (and not merely rhetoric) to entrepreneurs. British businesses are burdened by huge quantities of bureaucratic red tape, and by ludicrously excessive regulation. Planning restrictions need to be relaxed, labour laws need to be pared back and, above all, bureaucratic interference needs to be slashed.


Disclaimer: Two weeks old, nicked from the news blog, and possibly posted before, I still think this is worthy of posting here.

Edited by Timm

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Hard to believe the word of anyone who includes a blank page on a pdf

It's so that the pdf can be printed on a single piece of (folded) A3 paper.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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