George Osborne\’s calculation was that the combination of dramatic early austerity, very low interest rates, subsequent recovery and pre-election tax cuts as rewards would do the trick. He genuinely believed the free market, sound housekeeping story. Now he is not so sure. He is discovering, as Bank of England chief economist, Spencer Dale, recently acknowledged, that the government knows a great deal less about how the economy works than it thought.
Given that we know less about how the economy works than we thought, Will therefore plods on to the thought that we should therefore plan the economy more than we do.
That is, we should do more of what requires us to know more about how the economy works as a reaction to our finding out that we know less about how it works than we need to to be able to plan said economy.
It\’s a remarkable feat of logic, isn\’t it? \”We\’re too ignorant to plan: therefore we must plan!\”