As to the fourth? Munchau mentions helicopter money. I am not sure why he just doesn’t call it tax cuts. But neither mention People’s Quantitative Easing. And what that shows is that there is still a reluctance to think that the state really does have a role in the real economy by having an industrial and economic policy that engages with the physical reality of tangible wealth creation. That reluctance is the problem we really face and in this sense Larry Elliott and Wolfgang Munchau really are as much a part of the problem as they are of being any part of the solution. Calling for Plan B and not having a clue what it might be is not helpful.
Helicopter money isn’t a tax cut. It’s printing new money and giving it to people to go spend. This increases inflation/reduces deflation and it does so quickly.
As opposed to PQE which depends upon everyone waiting half a decade to get planning permission for their shovel ready projects.
You see, we’ve already played this game. Bush and Obama did seeral different attempts at stimulus. Giving people large chunks of cash runs into Ricaridan equivalence, they save them, pay own debt. Giving people small sums of money means they go out and spend. And 7 years later I don’t think any of that $800 billion in stimulus has actually been spent on building anything.
Helicopter drops are preferable to PQE because they work.