Will Hutton

Thatcherism may have been ideological, but it was an evident answer to the real issues of the time. Corporatist price and incomes policies had not addressed inflation; public intervention had not lifted economic growth.

Controlling the money supply, deregulating markets, privatising nationalised industries and reducing the power of organised labour would do what the outgoing mainstream consensus could not. They would lower inflation and revive the economy.

Glad we\’ve finally got agreement on that then.

One thought does occur though: if that\’s what is needed to lower inflation and revive the economy, as we\’ve now got rising inflation and a deflating economy, why aren\’t we doing the same again?

2 thoughts on “Will Hutton”

  1. Just review the comments on the GM foods thread for a clue. Socialism and personnal sacrifice are now the solutions to all of the world’s ills.

  2. Including “controlling the money supply” is mistaken–at least in its perversion of language.

    The writer means, with the words, “controlling the money supply,” to put an end to an inflated and further-inflating currency but fails to recognize that the unfavorable conditions and results he deplores are precisely the result of “controlling the money supply.”

    When the authority has “control” of the quantity of money, all of any unfavorable conditions of that supply–whether inflationary or otherwise–must rest with that authority.

    The entire reason for political control of the money supply is the misguided notion that said authority, with the “proper” manipulation of quantity, can achieve a lowering of the rate of interest and bring “good times”–prosperity.

    The free market (and the conjectures of entrepreneurs) can deal successfully with any particular quantity of money that happens to be in existence at the given time, provided only that that quantity not be subject to arbitrary changes on the part of some authority.

    But that condition has not been allowed to come into existence anywhere in our lifetimes; the populace everywhere is not only sold on the legitimacy of authoritative oversight of the value and quantity of money but of the prospects for success of that endeavor, when “done correctly.”

    So, what else is new?

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