Tag Archives: budget deficit

Cassandra on the only game in town?


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

Covid-19 global consequences


This week on Facebook: Perhaps the worst consequence to the global pandemic introduced by Covid-19, is that  having spent all that inflationary money to combat the pandemic it ends not with a bang but with a whimper. The pandemic has produced, for the most part, common political solutions involving inflationary measures to boost their economies. As I remarked in my post last week (Global Covid-19), there will be a recovery from this pandemic (for some of us) leading to a global scramble for growth. This recovery will lead to the internal economic measures (a euphemism for austerity) and external beggar thy neighbour policies introduced by the pubic administration.

Read more of this post

Covid-19 Global


This week on Facebook: Covid-19 is very much a global political and commercial pandemic and I am posting political and economic articles related to Covid-19¹², known globally as the coronavirus. My reprise posts on the fiscal crises that the world finds itself in post the introduction of fiat money in 1971 — the advent of global deficit financing and a global fiscal deficit are covered by this global pandemic.

A financial and economic crisis will tend to arise from a fiscal deficit if government debt levels contribute to a loss of market confidence in a national economy, reflected in turn in instability in currency and financial markets and stagnation in domestic output. A political and social crisis will tend to arise if both the fiscal deficit itself and the necessary corrective measure implemented to eliminate that deficit result in further losses of employment and output, falling living standards, and rising poverty. Britannica — Fiscal Crises

Read more of this post

UK — Electoral Naiveté


This week on Facebook: UK electoral issues¹. Every election does — to my mind —point to the fundamental differences between how they are viewed by politicians, the electorate, and the social media. Each may have what they consider to be pragmatic views but they only agree on their own self interest and not on that of the State. This includes the social media (news on the web) which, for the most part, are articles written for publication and intended to appeal to a certain readership. While we all are guilty of doing that, some of us may claim to have learned our lesson.

Read more of this post

UK Fiscal Incompetence!


This week on Facebook: If I appear obsessed with politicians and economics it because my online research has led me in that direction. Last week I posted the following from 2008:

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

Read more of this post

UK — Full Employment?


This week on Facebook: In England the Statute of Labourers was issued in 1351 after the Black Death had reached England. Full employment¹ was welcomed by those labourers left alive, often leading to increases in salary and freedom from serfdom for some.

And because many sound beggars do refuse to labour so long as they can live from begging alms, giving themselves up to idleness and sins, and, at times, to robbery and other crimes-let no one, under the aforesaid pain of imprisonment presume, under colour of piety or alms to give anything to such as can very well labour, or to cherish them in their sloth, so that thus they may be compelled to labour for the necessaries of life. Statute of Labourers (1351)

Read more of this post

Welfare UK Style


This week on Facebook: The UK 2010 State of the nation¹ reported on poverty, worklessness and welfare dependency in the UK that: “Over the past 10 years we have seen more and more money spent on the benefits system in an attempt to move people from below the 60% poverty threshold to above it. Expenditure on child-related benefits alone has almost doubled. Yet despite this expenditure, the figures in this document show that this approach is failing.

Income inequality is at its highest since records began; millions of people are simply parked on benefits with little hope of ever progressing into work. high levels of family breakdown, educational failure, addiction and health inequality are having a severe impact on outcomes for both adults and children.” [sic¹] Read more of this post

Are State subsidies eveyone’s burden?


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

Influence — maybe?


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.

Kingfisher perched on a branch — click image

 

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.

Criminals & Taxation (reprise)


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

Martin Widlake's Yet Another Oracle Blog

Oracle performance, Oracle statistics and VLDBs

The Land Is Ours

a Landrights campaign for Britain

The Bulletin

This site was created for members and friends of My Telegraph blog site, but anyone is welcome to comment, and thereafter apply to become an author.

TCWG Short Stories

Join our monthly competition and share story ideas...

Ed Conway

Blogs and charts and stuff

Public Law for Everyone

Professor Mark Elliott

Martin Widlake's Yet Another Oracle Blog

Oracle performance, Oracle statistics and VLDBs

The Land Is Ours

a Landrights campaign for Britain

The Bulletin

This site was created for members and friends of My Telegraph blog site, but anyone is welcome to comment, and thereafter apply to become an author.

TCWG Short Stories

Join our monthly competition and share story ideas...

Ed Conway

Blogs and charts and stuff

Public Law for Everyone

Professor Mark Elliott

%d bloggers like this: