Tuesday, February 23, 2010
Time to try something different?
Britain has cut interest rates, pumped up government spending, printed money like crazy, and nationalized almost half the banking industry. Just about everything possible has been done to encourage consumption. The results have been miserable. The economy is flat on its back, unemployment is rising, the pound is sinking, and the bond markets are bracketing the country with Greece and Portugal in the category marked â€œbankruptcy imminent.â€ Whatâ€™s needed is a total change of direction. Get the deficit under control. Raise interest rates to restore confidence in the pound, and reward saving. Cut taxes to stimulate enterprise and investment.