Polly and economic history

Here is austerity April and the great economic experiment begins, with us as laboratory animals for George Osborne\’s rerun of the depression years. If extreme retrenchment didn\’t work then, double the dosage and try again.

But, erm, there wasn\’t \”extreme retrenchment\” in either the US or the UK in those years. Hoover massively expanded government spending and the deficit. Economy still cratered. In the UK, the budget was kept balanced and the important action was coming off the gold standard. Economy recovered in 18 months or so.

Yes, we all know the Keynesian theory, the story. It\’s just that the evidence isn\’t there in the 1930s to support it.

The place that went wild with deficit spending took ages to recover. The place that didn\’t had pretty much a normal recession.

6 thoughts on “Polly and economic history”

  1. as you pointed out in a prev article,the US had a very large agriculture
    and a very large loss in jobs as the farms industrialized..
    diff reasons…diff results

  2. Hmmm… I would have thought that a budget deficit in excess of 9% of GDP, interest rates the lowest in 300 years, and a 25% devaluation of sterling was a pretty stout Keynesian stimulus, wouldn’t you, Polly? The economy has tanked because of the profigacy of G. Brown. The greater the party, the worse the hangover.

  3. Polly is probably an arts graduate. Arts graduates don’t do sums, especially hard sums.

    Tim adds: Joyously, Polly didn’t actually graduate…..

  4. “Polly didn’t actually graduate”

    She also failed the 11+. Luckily though, despite only obtaining one A level, she was awarded a scholarship to St Anne’s, Oxford from which, as you say, she failed to graduate.

  5. wonders at the chip on FrankC’s shoulder…..given that some universities award BAs to mathematics’ students

  6. Some universities only offer undergraduate BAs. A Baccalaureus in Artibus doesn’t have to be what FrankC means by an “arts student”.

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