Monday, June 18, 2012
5 myths about the UK economy
The graph above shows that the coalition's current deficit-reduction plans are actually slower than Alistair Darling's. It comes from Stephen Tall's great article which shows the emptiness of the economic debate between government and opposition. If only we could spend more time and energy on who should bear the tax burden and what scarce resources should be spent on, politics might become about real choices again.
I plead guilty to spreading some of the myths that Stephen destroys and, in the spirit of scientific enquiry, thank him for correcting me.
I note Stephen calculates
"Overall, the marginally higher growth of Labour’s looser fiscal policy would have resulted in 70,000 fewer unemployed. However, that reduction would have been obtained with an increase in debt across the three years of £26 billion — the equivalent of £370,000 per job — to be repaid by the nation later."
which compares with
"The £1bn contract for reactors for the next generation of the UK's nuclear-armed submarines to be announced by Defence Secretary Philip Hammond will create 300 jobs. I make that a mere £3,333,333 per job"
which I reported yesterday. In either case what we want are sustainable jobs at sustainable prices.