Polly on economics

While UK growth stagnates, Obama\’s US grows by 2.2%. While the UK economy has shrunk 3.9% since the crash, the US has recovered all it lost, and more. As our unemployment rises, theirs falls. Stimulus works, austerity sucks out the air.

Umm, what\’s the size of the budget deficit? £150 billion? 9% or so of GDP?

This is austerity is it?

Blimey.

Average real earnings fell again last month and 22.5% of the young are out of work. But locked into group-think, nothing in the budget will change our dismal trajectory, because economic ideologues learn nothing from experience.

So you\’ll be joining those non-ideologues who point out that here we have proof that a too high minimum wage will cause disproportionate unemployment rates in the young and untrained then, eh? You know, like those dangerous radicals at the Low Pay Commission?

Will he cut the 50p top rate? That\’s political suicide. If he capitulates because it\’s raised too little due to tax avoidance, that\’s caving in to civic robbery.

Working less so you eanr less is now civic robbery eh? How very, very, Soviet.

Raising the threshold to £10,000 will cost £5.3bn

Agreed, this is a linguistic, not economic, point but I refuse to agree that allowing people to keep more of their own money is a \”cost\”. It isn\’t, it\’s a reduction in the cost of government on those who get to keep their own money.

7 comments on “Polly on economics

  1. Let’s consider other differences too. The US has considerably lower energy costs (although those would be higher, I suspect, if Obama had his way). It also has large supplies of natural resources (although those would be fewer, I suspect, if Obama had his way). The Federal Government doesn’t (yet) spend a good chunk of its budget providing all the nation’s health supply (although there Obama has had his way to some extent, and that seems likely to change). And so on …

  2. The Federal Government spends a good chunk of its budget (about $900m) providing just part of the nation’s health supply. Your point is?

  3. I love the way that everyone hangs their own prejudices on other countries successes.

    There are a huge number of reasons that might contribute to a difference between the UK & US economies, but we all just love to cherry pick.

    The USA has largely paid for its spending splurge by printing money, and ability that massively exceeds that of other countries. Its success or otherwise is therefore pretty much irrelevant for the rest of us.

  4. The entire argument assumes the American figures have a 1 to 1 connection to reality.

    Shame

    Obama is just another lying leftist–the figures have benn fiddled four ways from Sunday. There is no economic recovery in the US and there won’t be one until the present system collapses.

  5. Toynbee and Blanchflower and Murphy and all the other loser proglodytes make this argument while ignoring one small, crucial fact which punctures a massive hole in it: there hasn’t been a Keynesian-style stimulus in the US since the middle of 2010.

  6. Polly said “Raising the threshold to £10,000 will cost £5.3bn”

    Where does she get that from?

    Treasury figures are that it costs roughly that per £1,000 increase, but the threshold is currently only £7,500ish.

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