jois wrote: ↑26 Sep 2022, 3:12pm
You do rather shotgun your replies and I haven't the typing speed to go into the macro economics of Keynesian theory. Yes I think what they are doing is along those lines , you disagree.
Well i don't really know what to say to that, if you're going to go around using your own definitions for things then that's going to make discussion on anything really quite tricky. Whatever truss/kwarteng are up to it is absolutely not keynesian.
Keynesian eccomins tends to eat it's self and give rise to inflation so I'm not trying to say it's a good idea if that is what they are doing.
That's a perception pushed by Adam Smith style and other free market economists that exploits the fact that politicians are reluctant to restrain economic booms. Keynesian and the mainstream economics that it turned into is perfectly clear that intervention in those is just as important.
But I'm fairly convinced that tax increases are not good at heading off recession
Tax increases are needed to keep inflation in check (tax literally takes money out of the economy), the spending part (on useful things, not tax cuts) is what heads off a recession. The only other controls are increase interest rates (technically independent, limited headroom without causing mortgage defaulting) or reduce spend (what exactly would be cut? The country is falling apart already)
Interestingly, one of the horses mouths (Kate Andrews of the IEA & Spectator) seems to be implying that increasing interest rates is part of the objective. Truss's economics is lead by Patrick Minford (definitely not keynesian!) who has long thought that they are too low. Going to be fun to see the reaction from mortgage owners when they push interest rates to 5%+ plus.
jois wrote: ↑26 Sep 2022, 2:58pm
A low regulation economy spewing out poor quality goods to the world has been shown to be quite successful. It's not my first choice
Which? And by what measure of 'success'?
Re h&s i don't know when you last worked but the uk has been pretty decent in results, not just paperwork in recent years, especially if you look at areas like construction. I suspect that's declined a bit over the last decade or so