Tag Archives: budget deficit
May 9, 2020Posted by on
This week on Facebook: I wrote (at some length) about The Money Tree in 2018, in the post I mentioned Modern Monetary Theory (MMT) and its claim that, with the political climate turning against the acceptance of austerity, it is time to reject the hegemony of neoliberalism. It is claimed that MMT economics never “run’s out of money” the way people or businesses can. The pandemic caused by Covid-19 has made MMT major topic of debate among politicians economists. Read more of this post
Mar 6, 2020Posted by on
This is yet another indication that this government cannot continue with its policy of welfare largesse. More significantly, we now have a national spend and debt repayment economy. Yet even here, the Government is using data manipulation to disguise the true size of the debt, while promising increased public expenditure. Welfare and Unemployment
Feb 15, 2020Posted by on
This week on Facebook: The NHS¹ is no more guilty of holding the country to ransom than any of the ‘other’ subsidy that contribute to the government’s deficit financing policy. However, it does provide a simple answer to my question, “Are State subsidies everyones burden?”. For example I had occasion to attend A&E recently and had to wait until my local one opened its doors (it now closes during the night). My ‘accident and emergency’ was prompted by my dropping a drill on my foot. A&E offer a free service (in the sense no money changes hands), similar to freebies given by the nurse or doctor at the General Practice. My point is that neither is a ‘free’ service. Whatever the freebies provided, or time spent on the consultation — both influence fiscal policy. Read more of this post
Sep 22, 2019Posted by on
On looking at some of my ‘drafts posts’ I came across one that included the case for HS2 and decided to post it this week. I am reminded of an article that I read some time ago when an Englishman was bemoaning the fact it took so long (with the appeals procedures) to get things ‘done’ in England. He was engaged in a conversation with a Frenchwoman on train journey through France, in which the Frenchwoman said, “Monsieur, in France, when we want to drain a swamp, we don’t tell the frogs what we intend to do.” I’m not sure if the remark was true, or the Frenchwoman was simply poking fun at the Englishman. Either way, I thought the Frenchwoman’s remark quite funny and recounted it to my colleague when we met for our monthly ‘pie and a pint’.
The subject came up when I asked him about HS2. He is a model rail enthusiast and knows far more about trains than I do, so I assumed that he would know about the HS2. It apparently is not a subject that appears great deal in model railway magazines and my colleague knew less about the HS2 than me. We did however end up discussing high speed rail in the word today (which he knew a lot about), and specifically in relation to the notion of comparative advantage (which I knew a lot about). Incidentally, I did remember an article that I had read on Japanese Bullet Train — probably attracted to it by its reference to the kingfisher.
On Friday morning I sat at my computer (unable to sleep) and searched for articles that may support the case for HS2. Clearly I am influenced by my own views, an Independent newspaper article appealed to me claiming that HS2 won’t improve Government’s poor record on infrastructure. Although I’m not quite sure if this is not simply a left wing newspaper popping at an austere right wing government, or if it is seriously intended to address the lack of rail infrastructure in the UK.
The Independent article fails to mention that in practice that any UK government always spends more money than it receives as revenue and mentioned a report that predicted and expected economic growth in 2025. Economic growth? I live in a State dependent on deficit financing in which the public administration must raise the necessary finance. I have to wonder just how much I am influenced by what I choose to read on social-media.
Sep 21, 2019Posted by on
This week on Facebook: It was only casually reading about the Lloyds bank case that I decided to research some of the government’s financial losses¹ for which no one, and especially not a politician or apparently any other public servant is ever held responsible (the original can be viewed here).
I read that the fraud scandal carried out at Lloyds bank took the police six years to investigate at a cost £7 million (excluding the cost of the trial). The case was dealt with by the Serious Fraud Office (SFO) which, regardless of its successes and failures, as part of the public sector, has an impact on a seemingly inexorable budget deficit.
Certainly some investigative journalism usually results in a story reaching the public, it may even create a furore for a time, but the government know that any furore will eventually subsided and its cause forgotten. The fraud investigation by the SFO at Lloyds bank (a bank involved in a government £20bn bailout) resulted in six fraudsters being sent to jail and a possible £100 million compensation paid to small-business victims by Lloyds bank (1). Read more of this post