tag:blogger.com,1999:blog-1141932539860553199.post2508421218729107773..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: "Quick! Pour more accelerant on the fire!"Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-1141932539860553199.post-19617532340948110322013-09-29T21:31:52.177+01:002013-09-29T21:31:52.177+01:00Mark,
I'm not saying they're holding back...Mark,<br /><br />I'm not saying they're holding back on spending. I'm just puzzled by this "debt doesn't matter" idea. If it doesn't matter, why are we holding back on spending? What government would be so crazy as to not promise Ferraris and kobe beef if debt doesn't matter?Tim Almondhttps://www.blogger.com/profile/13369256383976094670noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-5965323749813411912013-09-29T21:21:50.826+01:002013-09-29T21:21:50.826+01:00RM, we disagree on debts and deficits, but for dif...RM, we disagree on debts and deficits, but for different reasons. The MMTers make a good point on principle, but do not answer what the government should spend money on.<br /><br />How would you feel if the UK government were running up a massive deficit by sending aid money to Bongo Bongo Land?<br /><br />TS, the Lib Cons are not "holding back on spending" at all, they are spending even more than Labour at their worst! This is all Indian Bicycle Marketing! <br /><br />PC, no they do not favour a "small state"! They take away £1 from the unemployed or disabled and give £2 to a banker or landowner.<br /><br />I don't get this antipathy towards social housing. <br /><br />Some days I'm in small state, low tax mood and I think "Social housing costs the taxpayer nothing and councils compete with private housing providers, thus increasing competition and driving prices down, the end goal of capitalism. So what;s wrong with it?"<br /><br />Other days I feel collectivist left wing and think "We have to look after low earners and the elderly and disabled, what's wrong with providing them with cheap housing? The so-called 'free markets' have miserably failed to provide low cost cheap housing."<br /><br />Either way, I can't see a problem.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-68414575761351162732013-09-29T20:21:45.493+01:002013-09-29T20:21:45.493+01:00@TS "So, why are the government holding back ...@TS "So, why are the government holding back on spending?"<br /><br />The obvious answer to that is they favour a smaller state as a matter of principle. The same reason explains why they don't directly finance the building of low price homes [never mind Ferraris] to rent or allow local councils to do likewise with borrowed monies but prefer to ramp up prices and claim this will achieve the required new builds. The former will increase the state [central or local] role in the economy whilst the latter will support the City, the place where they will all end up after they've finished enriching their future employers. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-86147859136816431762013-09-29T18:50:29.414+01:002013-09-29T18:50:29.414+01:00"What is nonsensical here is that, as Keynes ..."What is nonsensical here is that, as Keynes pointed out, the deficit and debt are a complete and total irrelevance."<br /><br />So, why are the government holding back on spending? Why not have the government pour money into Ferrari and have them send us over lots of lovely cars, or ship over all the best kobe beef for us to enjoy?Tim Almondhttps://www.blogger.com/profile/13369256383976094670noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-72104441054094435472013-09-29T15:26:42.151+01:002013-09-29T15:26:42.151+01:00Very few people will understand the following poin...Very few people will understand the following point, but here goes.<br /><br />Daft wheezes to effect stimulus, like QE and Help to Buy have arisen because they are ways of bringing stimulus that don’t involve increasing the deficit and debt.<br /><br />What is nonsensical here is that, as Keynes pointed out, the deficit and debt are a complete and total irrelevance. As to the idea that increasing the deficit means increasing the debt, that’s nonsense because the deficit can accumulate as extra money (monetary base to be exact). And as to the idea that increasing the amount of money in circulation means inflation, it doesn’t if the economy has spare capacity.<br /><br />Unfortunately there are large numbers of so called “economists” at the IMF, OECD and in Britain’s civil service who just don’t understand the latter points.<br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-28299308067767877332013-09-29T15:24:39.155+01:002013-09-29T15:24:39.155+01:00Din, yes. I am never sure whether the landowners a...Din, yes. I am never sure whether the landowners are useful stooges of the bankers, or the banks are useful stooges of the landowners, or whether they are effectively one bloc, i.e. people who live off land rents or land values, directly or indirectly.<br /><br />But by and large, what's good for one group is good for the other.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-13637706706486475682013-09-29T14:09:23.814+01:002013-09-29T14:09:23.814+01:00The Help to buy / Help to sell makes more sense if... The Help to buy / Help to sell makes more sense if seen as Help to loan.<br /> Enableing banks to loan and earn intererst and improve their balance sheet's Capital in the current climate with retained earnings , if in fact that is what they do with the interest.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-46837563860924982602013-09-29T12:13:39.468+01:002013-09-29T12:13:39.468+01:00TS, correct, so the Tories observe that their Help...TS, correct, so the Tories observe that their Help To Sell strategy is working nicely in LSE, but failing badly everywhere else.<br /><br />Response: crank up Help To Sell!Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-54803961130700629182013-09-29T11:14:19.357+01:002013-09-29T11:14:19.357+01:00One problem is that elections aren't won in L&...One problem is that elections aren't won in L&SE, they're won in places like Warrington, Corby and Hastings.<br /><br />I even have a suspicion that a lot of UKIPs vote is a provincial rebellion against the three pro-London parties.Tim Almondhttps://www.blogger.com/profile/13369256383976094670noreply@blogger.com